Mario's Learning Curve
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Running head: MARIO’S PIZZERIA LEARNING CURVE
Mario’s Pizzeria Learning Curve
Kathleen Breene
University of Phoenix
OPS 571 Operational Management
Anthony Barnes
January 18, 2010
Introduction
Mario’s Pizzeria has been in business since 1950. The restaurant is located in an indoor mall in California. Times have changed since Mario began his venture, and the time has come to review the processes to determine if a different one would improve efficiency and profits.
Waiting
Currently at Mario’s Pizzeria the customer time spent waiting in long has been 11 minutes or more. Some customers do not stay and wait, and others complain. Unhappy customers stop coming and do not refer friends and family. So the question becomes how long should a customer wait in line for a slice of pizza? Mario believes it is important to maintain a balance between demand and capacity at his restaurant. The factors to consider are customer population, the waiting line, a service system, and a priority rule. Mario takes the conservative approach to these decisions.
Current Process
The current process at the restaurant consists of seating arrangements of 14 tables to seat four people, and no tables for two. Appendix A contains the process performance data under this process. The loss of sales is calculated to be $1,170, and profits are $1,023. The problem is the average wait time of 12 minutes. In one week 40 customers balked at the wait time and chose to leave. This is not the reputation Mario wants for his restaurant.
Change
The process needs to change in order for the restaurant to survive. The seating needs to change from the 14 tables of four to 10 tables of four and eight tables of two. This would allow smaller groups to be seated faster. Keeping the wait and kitchen staff at four and two respectively would be cost effective. Mario should also purchase one Plax ovens in place of the manual ovens. The Plax...
Mario’s Pizzeria Learning Curve
Kathleen Breene
University of Phoenix
OPS 571 Operational Management
Anthony Barnes
January 18, 2010
Introduction
Mario’s Pizzeria has been in business since 1950. The restaurant is located in an indoor mall in California. Times have changed since Mario began his venture, and the time has come to review the processes to determine if a different one would improve efficiency and profits.
Waiting
Currently at Mario’s Pizzeria the customer time spent waiting in long has been 11 minutes or more. Some customers do not stay and wait, and others complain. Unhappy customers stop coming and do not refer friends and family. So the question becomes how long should a customer wait in line for a slice of pizza? Mario believes it is important to maintain a balance between demand and capacity at his restaurant. The factors to consider are customer population, the waiting line, a service system, and a priority rule. Mario takes the conservative approach to these decisions.
Current Process
The current process at the restaurant consists of seating arrangements of 14 tables to seat four people, and no tables for two. Appendix A contains the process performance data under this process. The loss of sales is calculated to be $1,170, and profits are $1,023. The problem is the average wait time of 12 minutes. In one week 40 customers balked at the wait time and chose to leave. This is not the reputation Mario wants for his restaurant.
Change
The process needs to change in order for the restaurant to survive. The seating needs to change from the 14 tables of four to 10 tables of four and eight tables of two. This would allow smaller groups to be seated faster. Keeping the wait and kitchen staff at four and two respectively would be cost effective. Mario should also purchase one Plax ovens in place of the manual ovens. The Plax...