Chap4&amp;5

# Chap4&5 - Chap 4 & 5: Flowtime and Capacity Agenda...

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Agenda Capacity Analysis Unit load, resource pool, scheduled availability, theoretical capacity, effective capacity Identifying the bottleneck Flow Time Analysis Theoretical flow time Flow time efficiency Multi-product Capacity Management Goldratt’s View of Capacity Utilization Effects of Throughput on Labor Costs 1

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Fundamentals of Capacity Analysis Resource pool – a collection of “interchangeable” resource units that can perform an identical set of activities e.g. a group of X-ray machines Scheduled availability of a resource unit– amount time that a resource unit is scheduled to be available for work during a given period of time (e.g. 7.5 hours/day) Unit load for a resource unit – sum of all activity times per flow unit that require that resource unit (e.g. 10 min/customer) 2
Fundamentals of Capacity Analysis Theoretical capacity of a resource unit is its maximum (sustainable) flow rate if it were fully utilized during its scheduled availability scheduled availability unit load Theoretical capacity of a resource pool – sum of the theoretical capacities of the resource units in the pool Theoretical bottleneck – resource pool with the least theoretical capacity. The bottleneck’s theoretical capacity will determine the theoretical capacity of the process. 3

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Problem The average customer call duration at a call center is 2.18 minutes. Each customer service representative (CSR) in an 8 hour shift has a 30 min lunch and 30 min of scheduled breaks. If you schedule 6 CSR’s, what is the theoretical capacity of the call center per shift? 4
Theoretical Capacity Utilization (%) = Throughput Theoretical Capacity Capacity Utilization If an average of 987 calls are taken in a shift at the call center, what is the capacity utilization ? 5

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Steps for Finding Theoretical Capacity of a Process 1 . Define the flow unit, e.g. a patient, or customer order, or load application 2. Decide on a time period, e.g. week, month, year 3. List the capacity constrained resource pools 4. For each resource pool find its theoretical capacity (NOTE: analyze each resource pool independently from other resource pools and from the input rate) 5. Identify the theoretical bottleneck resource 6. The theoretical capacity of the process will be determined by the theoretical bottleneck 6
Theoretical Flow Time, Average Flow 7

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Flow Times 2 min/unit 3 min/unit
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## This note was uploaded on 05/12/2008 for the course MIS 560 taught by Professor Slaton during the Spring '08 term at Arizona.

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Chap4&5 - Chap 4 & 5: Flowtime and Capacity Agenda...

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