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## OPS 571 Week 2 Indivadual Assignment Learning Curve Concept

by: smartwriter Notetaker

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# OPS 571 Week 2 Indivadual Assignment Learning Curve Concept

Marketplace > OPS 571 Week 2 Indivadual Assignment Learning Curve Concept
smartwriter Notetaker
CSU - Dominguez hills
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OPS 571 Week 2 Indivadual Assignment Learning Curve Concept
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Date Created: 11/16/15
Learning Curve Concept  1     Running Head:  Learning Curve Concept Learning Curve Concept:  Application in the Context of Pizza Store Layout Simulation Writer’s Name Course Name, Semester No, Class Level Supervisor Name Learning Curve Concept  2 Introduction The basic premise behind the learning curve concept is the improvement in performance of  process due to repetitive nature of tasks operated by individual or organization again and  again. This theory is based on three fundamental assumptions which is as follows: 1. The time required for completion of task decreases as it is repeated number of times 2. The percentage of improvement decreases with corresponding increase in volume of  units, 3. The rate of improvement is predictable over the certain time There has been increment in the process of performance in such a way that units of  productions gets doubled in reduced span of time after the certain period of implementation.  This is also defined as the rate of learning where constant percentage of reduction in time is  taken care of. The slope of the curve is calculated by the difference between the rate of  learning and numerical value of one hundred. If the timing between the doubling of units are  decreased by 10 percent, then it will be connotated as 90 percent learning curve. Discussion of the learning curve concepts to test the alternative to the process The table for process performance data for the metric identified in the Pizza Store Layout  Simulation is as follows:  Learning Curve Concept  3 Table 1 S. No. Week No of No of Avg. Wait Avg. Profit s Custom Custom Time(Min) Queu (\$) ers for ers for e Group Group Lengt of 2 of 4 h 1 0 70 106 11.67 3.21 1,054 2 1-2 71 105 6.46 2.56 1,120 3 3-4 71 105 5.53 2.67 1,380 4 5-6 100 140 4.93 2.88 1,985 5 7-8 92 147 3.45 2.68 2,081 Learning curve can be developed by many curve fitting methods like arithmetic tables,  logarithmic scale or other methods. Learning Curve Concept  4 The plot for each week denoted by S. No. on X­axis and Avg Wait Time (Min) on Y­axis from above Table. The results of Pizza simulation process is shown above in  tabular format. There is definite  improvement in average waiting time for customer from first week till the eigth week of  pizza simulation process of Mario’s Pizza. It has decerased from 11.67 minutes to 3.45  minuts at the end of process after applying optimization strategy and removing the bottleneck in process. If we can do the analysis of curve, we see that average waiting time has decreased  to almost half from 11.67 to 5.53 minutes at the end of fourth week. We have to apply  approimation to fit the curve. The approximate slope of curve for eight week can be  calculated by (11.67­3.45)/(8­0) = 1.0272 i.e. avaerage waiting time is decreasing  by  1.0272/11.67 = 0.088 ~0.09. We can say that the rate of learning is 9% which means it is  91% learning curve. It can be estimated on the learning rate how the improvement in waiting  time happens. Similar interpretation can be applied to the profit gained by the improvement in process. Learning Curve Concept  5 The plot for each week denoted by S. No. on X­axis and Profit (\$) on Y­axis from above  Table. There is significant improvement in profit for customer from first week till the eigth week of  pizza simulation process of Mario’s Pizza. It has improved from 1,054 dollars to 2,081  dollars at the end of process after changing diiferent parameters of optimization strategy and  handling the bottleneck in process. If we do the analysis of curve, we see that profit has  increased to almost double from 1,054 to 2,081 dollars at the end of eigth week. The  approximate slope of curve for eight week can be calculated by (2,081 ­1,054)/( 8­0) =  128.375 i.e. profit is increasing by 128.375 \$ each week. Thepercentage increase in  profit is  128.375 /2,081 = 0.061 ~0.06 per week. We can say that the rate of learning is 6% which  means it is 94% learning curve.This can be applied for estimating the weekly improvement  for further improvement. Cumulative average or cum avaerage theory can be applied to optimize and estimate the  overall cost of restaurant staffs, rents, Pizza cost and ovens operating charges. Learning Curve Concept  6 (Source: http://fast.faa.gov/pricing/98­30c18.htm ) Here, Y calculates the mean value of cost which has been beared by utilization of X  quantities of different units. In cum avareage theory, average costs reperesnts the cumulative  units of X operating units. In other words, The total cost of producing X units will be  calculated by X multiplied by the cum average cost. In pizza simulation scenario, the average cost of no of pizzas consumed by customer can be calculated for the eight week production  using the average costs for running the restaurant each day. It will give the rough estimate for optimizing the price of Pizza to maximize the profit.   We have seen how service facilities and their utilization affected the waiting lines at Mario’s.  Waiting lines form when customers arrive at a faster rate than the service system can provide. Maintaining waiting lines, is not about shorter or longer queues, but about maintaining  balance between the demand for service and the capacity of the system to provide the service. Conclusion As a manager concern should be about operating characteristics such as the line length, the  number of customers in the system, the waiting time spent in the line, the total time spent in  the system, and the service facility utilization. An effective way of analyzing a waiting line  problem is to relate these characteristics to their costs. Learning Curve Concept  7 A long queue at favorite restaurant is enough to annoy even the most patient customer.  Several such experiences may result in loss of a customer, which translates into loss in sales. Therefore, learning curve concept is important in estaimating cost of the Wait Staff, Kitchen  Staff, Manual Ovens, Plax Ovens, and size of Tables for 4 and Tables for 2 to maiximize the  profit of Mario’s Pizza. Learning Curve Concept  8 References Bibliography Baloff, Nicholas (1971). "Extensions of the Learning Curve Some Empirical Results."  Operations Research Quarterly, 22.44. Website Federal Aviation Administration. (n.d.). Retrieved August 18, 2009, from The Learning  Curve: http://fast.faa.gov/pricing/98­30c18.htm

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