University of Phoenix
Group B WH09MBA11
Nicole Church, Instructor
December 15, 2010
Applying Learning Curve Theory to Mario’s Pizzeria
Process Performance Data Points for Mario’s Pizzeria
1. Change table distribution to decrease wait time and increase clientele which entails profitability. Originally, wait time including queue was 11 to 12 minutes. By applying these changes, wait and queue reduce to 9 minutes approximately. Also, a $454 increase of profit is attained.
2. Purchase the Plax Oven instead of keeping the old unreliable manual ovens. By doing so, product availability is increase and the queue time is reduced. Using the old manual ovens, pizza took 15 minutes to cook. Utilizing the Plax Oven takes 4 minutes. 11 minutes are saved and faster service is provided to customers. Profits continue to increase. After the addition of the oven, Mario’s Pizzeria is at $1,653 in profit. Lost sales reduced to $345.
3. Purchase the Menu Point System. This system aids in reducing the queue. Wait staff does not have to walk the order over to Kitchen Staff. Thus, queue time is diminished and profits continue to increase since the utilization wait staff is reduced from a 95% to 80%.
4. Rent Cream Puffs versus opening a new counter for pick up. Renting is a better decision since no additional operating costs would be required.
5. Renting Cream Puffs allows for the capacity of tables to increase; adding 7 tables of 4 and 4 tables of 2. This aids in reducing both wait and queue time. Wait time is at 3.21 minutes and Queue is at 2.71 minutes versus the original 11 to 12 minutes of the entire process. Profits increased to $2,040 while the lost sales came to $690.
Analysis of Alternative Process in Effect
Mario’s Pizzeria simulation is a tool that aids in understanding how to apply the learning curve theory. The simulation begins by...