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311_Session3 - Operations management Session 3 Measures...

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  Operations management Session 3:  Measures: Capacity, Time, and More
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 Session 3 Operations Management 2 Previous Week What are the key concepts learned in the last  week?
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 Session 3 Operations Management 3 Class Objectives Review of the last week How do we quantitatively evaluate a process?  Capacity Time Other? Little’s Law A general rule that links various performance measures Examples Summary
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 Session 3 Operations Management 4 Analyzing Business Process Inputs Outputs Our purpose is to examine a transformation process from  the perspective of  flows. The unit being transformed is typically referred to as a  job   and can represent a customer, an order, material, money,  information, etc. Transformation Process
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 Session 3 Operations Management 5 Throughput Rate In general, the inflow rate and the outflow rate fluctuate over  time. Define the average in (out) flow rates as the long-run  average number of jobs that flow into (out of) the system. In a stable  environment, the average inflow rate is equal to  the average outflow rate The average flow rate through the system is referred to as  the  throughput rate  assessed as the number of jobs per  unit time. 
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 Session 3 Operations Management 6 Measure: Capacity Definition:  The number of units, per unit of time,  that can be processed. Examples:   A casher can serve 20 customers per hour The capacity of a server is 30000 hits per min A worker can assemble 2.22 hamburgers per min A stove can cook 20 hamburgers per min  or 0.33333 per second  (Note:  Units are important!) It is a rate: Units/Time
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 Session 3 Operations Management 7 Process Capacity Raw Material Cook Assemble Deliver Patties cook in 60 seconds; the stove holds 20 patties. Assembly of a hamburger takes 27 seconds per hamburger. 10 workers are available to assemble hamburgers. What is the capacity of the cooking stage? What is the  capacity of the assembling stage?  What is the capacity of the process? 
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 Session 3 Operations Management 8 Analysis Cooking First 20 Second 20 Third 20 1:00 2:00 3:00 10 20 1:27 1:54 Assembly Suppose an order for 60 hamburgers is placed. What will happen? 30 40 2:27 2:54 50 60 3:27 3:54 If order continues to come, how many more hamburgers do we produce for every minute?
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 Session 3 Operations Management 9 Bottleneck Analysis The stove, operating 100% of the time, can push out:  20  hamburgers / 1 minute = 20 hamburgers per minute.
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