ppt S_03- Capacity, Time, & More Measurements

# ppt S_03- Capacity, Time, & More Measurements -...

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Operations management Session 3:  Measures: Capacity, Time, and More

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Session 3 Operations Management 2 Previous Class Volunteers for Case Presentations? What are the key concepts learned in the last  week?
Session 3 Operations Management 3 Class Objectives Process Measures  How do we qualitatively evaluate a process?  Little’s Law A general rule that links various performance  measures

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Session 3 Operations Management 4 Analyzing Business Process Inputs Outputs Our purpose is to examine a transformation process from  the perspective of  flows. The unit being transformed is typically referred to as a  job   and can represent a customer, an order, material, money,  information, etc. Transformation Process
Session 3 Operations Management 5 Process Flows N ( t ) – inflow rate – Number of jobs  flowing into the System at time  t O ( t ) – outflow  rate – number of completed jobs flowing out of the  system at time  t Transformation Process

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Session 3 Operations Management 6 Throughput Rate In general, the  inflow rate   N ( t ) and the  outflow rate   O ( t fluctuate over time. Define the average in (out) flow rates as  the long-run average number of jobs that flow into (out of)  the system. In a  stable  environment, the  average  inflow rate is equal to  the  average  outflow rate The average flow rate through the system is referred to as  the  Throughput rate  assessed as the number of jobs per unit  time.
Session 3 Operations Management 7 Throughput Rate:  Example A casher serves 20 customers per hour A server serves 30000 hits per min A worker assembles 2.22 hamburgers per min A stove cooks 20 hamburgers per min  or 0.33333 per second  (Note:  Units are important!)

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Session 3 Operations Management 8 Measure: Capacity Definition:  The number of units, per unit of time,  that can be processed. Examples:   A casher can serve 30 customers per hour The capacity of a server is 40000 hits per min A worker can assemble 2.7 hamburgers per min A stove can cook 20 hamburgers per min  or 0.33333 per second  (Note:  Units are important!) It is a rate: Units/Time
Session 3 Operations Management 9 Process Capacity Raw Material Cook Assemble Deliver Patties cook in 60 seconds; the stove holds 20 patties. Assembly of a hamburger takes 27 seconds per hamburger. 10 workers are available to assemble hamburgers.

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ppt S_03- Capacity, Time, & More Measurements -...

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