Running head: APPLYING THE LEARNING CURVE THEORY 1

Applying the Learning Curve Theory

Bethzaida Reyes-Reyes

OPS/571

May 12, 2010

Angel L. Torres Lopez, DBA

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Applying the Learning Curve Theory

Elements such as technology, structure, documents, procedures and human

resources are critical for the development of any organization. Sustainable competitive

advantage on any given organization is acquired through organizational learning

processes involving all these elements. The processes of attending clients and

preparing orders in Mario’s pizzeria may be evaluated under the learning curve theory.

Mario has the challenge of improving the service to its clients by reducing the waiting

time and queue length while maximizing the benefits of the operation.

As a conservative individual, Mario wants to improve the operation while keeping

the essence of its business. In the food service industry, the essence of the business is

portrayed by the individuals attending the clients, the waiters, the individuals preparing

the food, the kitchen workers, and the food itself. During the first phase of the process

modification only the arrangement of tables was changed, ending with 10 tables for four

and 8 tables for two. This modification reduced the waiting time from 9 minutes to 5.87

minutes and the average queue length to 2.54. The profits increased and the loss of

sales was reduced. The utilization of the workers was not too high, leaving space for

attending more clients. Mario was pleased with this modification since no workers and

the knowledge they have was lost.

After the new arrangement of tables, the equipment and technology used during

the attending of clients and preparation of the food was evaluated. The manual ovens

were eliminated and one conveyor oven was purchased. A new system to take orders

and transfer them automatically and wirelessly to the kitchen was implemented. These

modifications reduced the waiting time to 4.49 minutes, profit increased and the loss of
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sales was reduced. Mario was pleased with the changes since more customers were

arriving to the pizzeria and the process was able to handle them.

Mario was thinking about expanding the operation and the opportunity came

when the location next door was available. Mario needed to decide if renting that space

and expand the operation or modifying the current layout and add a takeout service.

The best option is to rent the space next door. This modification to the business

increased the capacity by adding seven tables of four and four tables of two, reduced

the waiting time to 3.33 minutes and increased the profit. It also increase the loss of

sales but Mario was pleased with the overall result, considering this loss of sale a small

cost of the operation when compared to the opportunity of keeping all the knowledge

and experience of the human resources.

The waiting time, queue length, profits, costs and loss sales are the performance

metrics identified during the process. These metrics reflected the impact and

effectiveness of the process modifications. As the modification process was

progressing, these metrics provided the necessary business performance information to

determine whether the improvement processes was on the right track or not.

Through the modification of the service process and store layout of Mario’s

pizzeria, the operation was improved and turned into a more profitable one. Knowledge,

a critical component for the sustainable competitive of any organization, was protected

during the process. The human resource remained untouched, assuring the knowledge

and experience acquired through time. The technology used during the process was

improved, preparing the business for future growth.

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References

Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006) Operations Management For Competitive

Advantage (11th ed). New York: McGraw Hill/Irwin

University of Phoenix. (2010). Pizza Store Layout Simulation [Computer Software]. Retrieved

from University of Phoenix, Simulation, OPS/571 Operations Management website