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311_session_5_more_on_capacity_hiroshi(1)-1

311_session_5_more_on_capacity_hiroshi(1)-1 - More on...

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More on Capacity Management BUAD311 Operations Management Session 5 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?
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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 Flow Rate = 26 dozen/night = 6.5 dozen/hour Capacity of an oven = 24 dozen/night =6 dozen/hour Capacity of a mixer = 40 dozen/night =10 dozen/hour Two ovens and one mixer
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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? Note Kristen’s capacity is…. Yes, by cross-training the roommate
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6 Flexibility & Capacity What is the capacity of Kristen and Roommate if they cross-train each other?
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