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311_session_2_measures_hiroshi

311_session_2_measures_hiroshi - Measures Capacity Time and...

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Measures: Capacity, Time, and More BUAD311 Operations Management Session 2 Hiroshi Ochiumi 1
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2 Objectives How do we quantitatively evaluate a process? Capacity Time Other?
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3 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, Transformation Process
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4 Throughput Rate In general, the inflow rate and the outflow rate fluctuate over time. 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 (customers, orders) per unit time.
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5 Measure: Capacity Definition: The number of unit that can be processed per unit of time. Examples: A cashier can serve 20 customers per hour. The capacity of a web server is 30,000 hits per min.
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