Chap3 - Chap. 3 Process Flow Measures Agenda Introduce 3...

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1 Chap. 3 Process Flow Measures Agenda Introduce 3 key process flow measures Flow Rate (affects sales) Flow Time (affects responsiveness) Inventory (affects working capital) Define the difference between stable and unstable processes Relate the 3 key process measures to each other through Little’s Law
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2 Process Flow Measures Flow Time T [hrs] Inventory I [units] process boundary Activity Buffer or queue space Process Flowchart flow units customers, data, material, cash, etc.
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3 Terminology Flow unit the item being processed Flow time -- total time that a flow unit spends in the process Flow rate -- # of flow units that flow through a specific point in the process per unit of time R i = inflow rate R o = outflow rate Inventory Work-in-process (WIP) -- flow units that have entered the process but have not left the process Buffer WIP -- flow units waiting in queues or in buffer storage between activities Raw Materials Finished goods
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4 Terminology Resource pool – a collection of “interchangeable” resource units that can perform an identical set of activities e.g. a group of bank tellers each teller is a resource unit Activity time – time required by a typical flow unit to complete the activity once
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Process Flow Process Flowchart Outflow rate R o Flow Time Inflow rate R i 1 unit every 2 minutes Time in Minutes 12 3 4 56 78 9 10 11 13 14 15 16 17 18 19 20 10 9 8 7 6 5 4 3 2 1 1 min/unit 2 min/unit 0 11 Assume 1 resource unit at each of the 2 activities First flow unit arrives at time 0 All times constant 5
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6 Activity 4 min/unit This process has 1 activity with 1 resource unit The processing time is 4 min per flow unit The capacity of the resource unit is 1 flow unit/4min or 15 flow units/hr If a new flow unit arrives every 5 minutes (R i =12units/hr) to be processed, what is R o ?
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Chap3 - Chap. 3 Process Flow Measures Agenda Introduce 3...

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