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311_session_4_more_on_capacity_hiroshi

# 311_session_4_more_on_capacity_hiroshi - More on Capacity...

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More on Capacity Management BUAD311 Operations Management Session 4 Hiroshi Ochiumi 1

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2 More on Capacity Management So far, we analyzed the process given the capacity. How much capacity do we need to meet the demand?
3 Capacity Requirement: Example Kristen saw a high demand and would like to produce 26 dozen cookie (in one dozen order) a night. How many ovens and mixers does Kristen need? What are the utilization rates of Kristen and her roommate?

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4 Capacity Requirement Total Throughput Rate = 26 dozen/night = 6.5 dozen/hour Capacity of an oven = 6 dozen/hour Capacity of a mixer = 10 dozen/hour Two ovens and one mixer
5 Capacity Requirement Utilization rate of Kristen 26/(240/8) = 86.7% Utilization rate of Roommate 26/(240/4) = 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 the roommate

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What is the capacity of Kristen and Roommate if they cross-train each other? 2*(240/(4+8)) = 40 dozen/night
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311_session_4_more_on_capacity_hiroshi - More on Capacity...

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