311_Session4

# 311_Session4 - Operations management Session 4 More on...

• Notes
• 21

This preview shows pages 1–7. Sign up to view the full content.

Operations management Session 4:   More on Capacity  Management

This preview has intentionally blurred sections. Sign up to view the full version.

Session 4 Operations Management 2 More on Capacity Management So far, we analyzed a process  given  the capacity. Question: How much capacity do we need to meet  demand?
Session 4 Operations Management 3 Capacity Requirement Example Kristen expects higher demand and would like to  produce 26 dozen cookie (in one-dozen order  sizes) a night.  How many ovens and mixers does Kristen need? What are the utilization rates of Kristen and her  roommate?

This preview has intentionally blurred sections. Sign up to view the full version.

Session 4 Operations Management 4 Capacity Requirement Example Total throughput rate = 26 dozen/night = 6.5 dozen/hour Capacity of an oven = 6 dozen/hour Capacity of a mixer = 10 dozen/hour  Need two ovens and one mixer
Session 4 Operations Management 5 Capacity Requirement Example Utilization rate of Kristen = 26*8/240 = 86.7% Utilization rate of Roommate = 26*4/240 = 43.3% What if Kristen would like to produce 36 dozen  cookie (in one dozen order) a night? Is this  possible? Yes, by  cross-training  (both Kristen and her  roommate)

This preview has intentionally blurred sections. Sign up to view the full version.

Session 4 Operations Management 6 Flexibility & Capacity What is the capacity of Kristen and Roommate if  they were cross-trained (to do the other person’s  asks in addition to their own)?  Time taken per person per dozen cookies= (8+4)/ 2=6 min/dozen 240/6=40 dozen/night Flexible equipment and cross-training enable a  higher utilization rate.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern