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Learning Curve Theory

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Learning Curve Theory
Running head: LEARNING CURVE THEORY

Learning Curve Theory
Learning Curve Theory Learning curves play an important role in today's marketplace. The main principle behind learning curves is that the more times an individual or organization repeats a process, there will be an increase in experience and efficiency. A learning curve graphically represents the rate of improvement in performing a task or function over time (Learning Curve, 2006). This paper will provide a discussion about applying the learning curve theory concepts by testing alternatives to a process. Alternatives to a process will be tested and process performance data will be measured for profit in the Pizza Store Layout simulation to show the affects of learning curve theory.
Application of the Learning Curve Theory The Pizza Store Layout simulation provides an opportunity to test alternative operating parameters by simulating the output affects of a change in input parameters that can be used to demonstrate the learning curve theory. The learning curve theory is has three concepts; each time the task is repeated, the amount of time required to perform the task also decreases; as more units are produced, improvement decreases; and the rate of improvement has to be consistent enough so that it can be used as a prediction tool.
Testing Alternatives The Pizza Store Layout simulation provides output metrics income, costs and profit determined by various management decisions affecting operations of Mario’s Pizzeria. Various operating parameters determine profits and costs while making sure customers remain satisfied with waiting and queue times. Learning curve theory states that each attempt at the simulation should result in better results or outcomes to the process (Chase, Jacobs & Aquilano, 2006). As changes are made, a comparison is given to the results of an alternative to the current process metrics. The results of each decision are metrics that measure of the process



References: Chase, R., Jacobs, F., & Aquilano, N. (2006). Operations Management for Competitive Advantage. Boston: McGraw-Hill Irwin. Learning Curve. (2006). In Business: The Ultimate Resource (2nd ed., p. 1536). Cambridge, MA: A & C Black Publisher Ltd. Appendix A: A Learning Curve Graph of Profit [pic]

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