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Session2

# Session2 - Operations Management Session 2 Process...

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Session 2 Operations Management 1 Operations Management Session 2: Process Management

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Session 2 Operations Management 2 Class Objectives Process Measures Little’s Law
Session 2 Operations Management 3 Process Measurement: Example Raw Material Cook Assemble Deliver Customer places order Patties cook in 45 seconds; the stove holds 20 patties Assembly of a hamburger (including bun toasting) takes 15 seconds per hamburger 10 workers are available to assemble hamburgers

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Session 2 Operations Management 4 Analysis Cooking First 20 Second 20 Third 20 45 1:30 2:15 10 20 30 40 50 60 1:00 1:15 1:45 2:00 2:30 2:45 Assembly Suppose an order for 60 hamburgers is placed. How long will it take to complete this order?
Session 2 Operations Management 5 Bottleneck Analysis The stove, operating 100% of the time, can push out 20 hamburgers / 45 seconds = 0.44 hamburgers per second The workers, operating 100% of the time, can push out 10 hamburgers / 15 seconds = 0.66 hamburgers per second The stove is the bottleneck resource; it pushes out the slowest amount of hamburgers per time period There is no reason to hire another worker, at any cost. Having an additional worker does not speed up the hamburger delivery process.

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Session 2 Operations Management 6 Capacity Definition: The (maximum possible) number of units, per unit of time, that can be processed. Examples: The capacity of the McDonald’s in the previous example was 0.44 hamburgers per second, or approximately 26 hamburgers per minute. A bank can serve 100 customers per day. The capacity of a server is 30,000 hits per min.