Running a Business

Running a business, like most things in life, is all about learning. Sometimes things work well the first time, however most of the time you learn from your mistakes and how to make situations better. This is known as a learning curve, as we learn from our experiences, we can improve and help ensure things operate more effectively and efficiently. Mario, the owner is Mario's Pizzeria, is looking to give control of the restaurant over to his grandchild. While they both difference on how the business should operate, they both agree that making money is one of the most important goals. Using the Pizza Store simulation (UOP, 2002) we can see how a learning curve is utilized.

Process Performance Data

One of the first concerns they have is the waiting times. The longer people wait, the less money the store will be able to make. Additionally, if people see a long line, or if the restaurant is known for a long wait, customers may not wait and decide to go elsewhere. By changing the table arrangement around to 10 tables for 4 and eight tables or 2, the wait time decreased to six minutes and made a profit of $1,540, with a loss of sales of only $465.

Another performance issue is the process time it takes to get order completed. To help speed up the process, ordering a Plax oven will decrease the time it takes to bake a pizza. The pizzeria also purchase a menu point system that helps speed up the orders as the orders go directly back to the kitchen for them to be prepared.

The Pizzeria decided to rent the Cream Puffs Bakery next door. By renting out this space they increased their capacity for 11 tables and decreased their wait time to just over three minutes. This improves the efficiency of the restaurant because it allows for more customers while decreasing their wait time, which increases profits.

With all the changes that are going on, it is important to ensure that the restaurant

...