311_Session4

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

This preview shows pages 1–7. Sign up to view the full content.

Operations management Session 4:   More on Capacity  Management

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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?
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?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
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)

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Session 4 Operations Management 6 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.
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2008 for the course BUAD 311 taught by Professor Vaitsos during the Fall '07 term at USC.

Page1 / 21

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

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online