class 4 slides n notes.docx - Sauder School Comm 204 –...

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Sauder School Comm 204 – class 4 Logistics and Operations Management COMM 204 Logistics and Operations Management Process Analysis (I) Review Process mapping basics Key steps in process analysis Get feedback and validate maps Process analysis basics (3 keywords) Process Analysis 2 S. Thomas McCormick © 2016 Page 1
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Sauder School Comm 204 – class 4 Logistics and Operations Management Process Analysis (I) Review Process mapping basics Key steps in process analysis Get feedback and validate maps Process analysis basics (3 keywords) Process Analysis 2 S. Thomas McCormick © 2016 Page 2
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Sauder School Comm 204 – class 4 Logistics and Operations Management Process Analysis (II) Outline Utilization and Utilization Profiles Inventory Build-Up Diagram Little’s Law Process Analysis 2 S. Thomas McCormick © 2016 Page 3
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Sauder School Comm 204 – class 4 Logistics and Operations Management Capacity Rate vs. Throughput Rate Both the capacity rate and the throughput rate measure the output rate of a process Capacity rate: Maximum possible output rate Throughput rate: Actual output rate The throughput (or flow ) rate depends on two things: Capacity rate Input rate (also called the arrival rate) = rate at which flow units arrive at the process, e.g. arrival of customers (demand rate), or raw material arrival into a factory (planned or scheduled arrivals) Process Analysis 2 S. Thomas McCormick © 2016 Page 4
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Sauder School Comm 204 – class 4 Logistics and Operations Management Basic Process Characteristics Process Analysis 2 S. Thomas McCormick © 2016 Page 5
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Sauder School Comm 204 – class 4 Logistics and Operations Management The Funnel Analogy Bottleneck Process Analysis 2 S. Thomas McCormick © 2016 Page 6
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Sauder School Comm 204 – class 4 Logistics and Operations Management Physics of Process Flows and Process Characteristics Process Analysis 2 S. Thomas McCormick © 2016 Page 7
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Sauder School Comm 204 – class 4 Logistics and Operations Management Basic Process Measures In Production and Service Process Analysis 2 S. Thomas McCormick © 2016 Page 8
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Sauder School Comm 204 – class 4 Logistics and Operations Management Utilization Utilization gives us information about “excess capacity” The utilization of each resource in a process can be presented with a utilization profile 80% Process Analysis 2 S. Thomas McCormick © 2016 Page 9
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Sauder School Comm 204 – class 4 Logistics and Operations Management Operational Challenge: Mismatch between demand and supply In any process, the input and output rates will vary over time A key operational challenge is matching supply and demand i.e., matching the input and capacity rates For a variety of reasons, a perfect match is not possible What are some of these reasons?
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