311_Session2

311_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 Previous Class What are the key concepts learned in the last  session?
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Session 2 Operations Management 3 “Measuring Performance in the  Services” What is the main point of the article? Why did I assign this article?
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Session 2 Operations Management 4 Class Objectives Process Measures (Capacity, Throughput Time,  WIP, Throughput Rate) Little’s Rule
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Session 2 Operations Management 5 Process Improvement Raw Material Cook WIP 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 6 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?
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Session 2 Operations Management 7 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 8 Capacity Definition:  The number of units, per unit of time,  that can be processed. Examples:   The capacity of the Macdonald’s in the previous example  was 0.44 hamburgers per second, or approximately 26  hamburgers per minute.   (Note:  Units are important!) A bank can serve 100 customers per day  The capacity of a server is 30000 hits per min.
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Session 2 Operations Management 9 Calculating Capacity The capacity of a process is determined by the  slowest (bottleneck) resource.   To calculate the bottleneck resource, calculate the  amount of “stuff” each resource can push out per  unit time.  The bottleneck resource is the resource  that pushes out the least amount of “stuff” per unit  time. Question: Is it ever worthwhile to invest in additional capacity for non-bottleneck resources?
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Session 2 Operations Management 10 Throughput Time What is  Throughput time ?
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311_Session2 - Operations management Session 2: Process...

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