class 6 notes LOGISTICS.docx

# class 6 notes LOGISTICS.docx - Sauder School Comm 204 –...

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Sauder School Comm 204 – class 6 Logistics and Operations Management COMM 204 Logistics and Operations Management Processes: Multiple Types and the Product-Process Matrix Product-Process Matrix S. Thomas McCormick © 2016 Page 1

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Sauder School Comm 204 – class 6 Logistics and Operations Management Outline Multiple Types of Flow Units Unit Load and Specialization The Product-Process Matrix Product-Process Matrix S. Thomas McCormick © 2016 Page 2
Sauder School Comm 204 – class 6 Logistics and Operations Management Process Analysis: Multiple Flow Units Resource Unit Load (minutes/unit) Product A Product B Product C 1 2.5 2.5 2.5 2 1.5 2 2.5 3 12 0 0 4 0 3 3 5 3 3 3 If you produce only Product A, what is capacity rate of the process (per hour)? R3 (60/12=5) Which resource is the bottleneck? R3 (takes the most time) If your product mix is 1 unit of A, 2 units of B and 2 units of C, what is your capacity rate? Bottleneck? Product-Process Matrix S. Thomas McCormick © 2016 Page 3

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Sauder School Comm 204 – class 6 Logistics and Operations Management Process Analysis: Multiple Flow Units Resource Unit Load (minutes/unit) Product A Product B Product C 1A+2B+2C 1 2.5 2.5 2.5 12.5 2 1.5 2 2.5 10.5 3 12 0 0 12 4 0 3 3 12 5 3 3 3 15 When multiple flow units go through a process, the “product mix” needs to be considered while determining the unit load and the capacity CR is 4 sets/hour (60 minutes/15(bottleneck)=4) The bottleneck depends on the product mix Product-Process Matrix S. Thomas McCormick © 2016 Page 4
Sauder School Comm 204 – class 6 Logistics and Operations Management Process Analysis: Multiple Flow Units Flow diagrams are not easy to draw How to identify bottleneck? Count the total amount of work per resource (also known as the “unit load”) When multiple flow units go through a process, a “product mix” needs to be considered while determining capacity The bottleneck depends on the product mix The bottleneck can move as the product mix changes Product-Process Matrix S. Thomas McCormick © 2016 Page 5

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Sauder School Comm 204 – class 6 Logistics and Operations Management Theoretical versus Effective Capacity Some capacity is lost due to machine maintenance, machine set-ups, etc. Example. Changing over from one product type to another may require adjustments to the machine, tools, etc (“set-ups”) Product-Process Matrix S. Thomas McCormick © 2016 Page 6
Sauder School Comm 204 – class 6 Logistics and Operations Management What information does unit loads give us? Process with four tasks (A, B, C, D) each taking 5 minutes to complete One worker does all four tasks 4 workers working in parallel (The resource pool has four resources) Unit Load (for each worker) = 20 min Capacity rate for each worker = 3 units/hour (each unit takes 20 mins, so in an hour you can only do 3) Capacity rate for the resource pool = 12 units/hour Product-Process Matrix S. Thomas McCormick © 2016 Page 7

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