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

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  Operations management Session 4:   More on Capacity  Management 
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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?
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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?
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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
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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)
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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. 
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