Process Analysis II

Process Analysis II - Process Analysis II Capacity,...

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1 Process Analysis II Capacity, Bottleneck, Utilization, Cycle time
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2 Imagine you are managing a large bakery with products ranging from breads to pies. Your mission is to improve the profitability of the operation. How will you start? 1. Develop a good understanding of the current operation, the activities that take place and the effort involved in each activity. 2. Use appropriate metrics to measure the performance. 3. Identify areas and means of improvement. Production is not the application of tools to materials, but logic to work. – Peter Drucker
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3 Utilization Capacity utilization = fraction of time resource is busy minute) or hour (per work do o capacity t minute) or hour (per work of amount = Example: A machine’s capacity is 100 items per hour. Actual  production rate is 75 units per hour. Then Capacity utilization = 75/100 = 0.75 or 75%.
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4 Bottleneck Operation Bottleneck Operation Operation Operation Operation 10/hr 10/hr 10/hr 10/hr 30/hr
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5 Mix Proof Bake Mix Proof Bake Pack Raw Material Work in Process Finish Goods This is called a process flow diagram. Elements: inputs, outputs, flow units, activities, buffers, precedence. Example : The bakery operates two parallel baking lines, each with a mixer, a proofer, and an oven. A single packaging line is shared by the two bread-making lines.
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6 Batch Size, Processing Time Mixing, proofing and baking are performed in batches of 100 loaves. (Here the Batch size equals 100). Packaging is done one loaf at a time. (The b
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This note was uploaded on 05/21/2011 for the course ISOM 111 taught by Professor Hu,inchi during the Spring '10 term at HKUST.

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Process Analysis II - Process Analysis II Capacity,...

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