Chap006 - Chapter 06 - Process Analysis CHAPTER 6 PROCESS...

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Chapter 06 - Process Analysis CHAPTER 6 PROCESS ANALYSIS Review and Discussion Questions 1. Compare McDonald's old and new processes for making hamburgers. How valid is McDonald's claim that the new process will produce fresher hamburgers for the customers? Comparing McDonald's new process to the processes used by Burger King and Wendy's, which process would appear to produce the freshest hamburgers? Exhibit 6.2 illustrates the various processes. McDonald's old process was a make-to-stock, where orders were pulled from finished goods. However, McDonald's new process will assemble-to-order. Therefore, McDonald's claim of a fresher hamburger should hold. Burger King's process is a combination of McDonald's old and new processes. The best Burger King can hope to do is match McDonald's with their orders that are assembled-to-order. The ones that are taken from finished goods will generally not be as fresh. Wendy's, on the other hand, should beat both McDonald's and Burger King on freshness, since they cook-to-order (Make- to-order)! 2. State in your own words what Little's Law means. Think of an example that you have observed where Little's Law applies. Little's Law shows the relationship between throughput rate, throughput time, and the amount of work-in-process inventory. Specifically, it is throughput time equals amount of work-in- process inventory divided by the throughput rate. Little's Law is useful for examining the performance of a process. Example 6.1, bread-making operation, illustrate an application of Little Law. 3. Explain how having more work-in-process inventory can improve the efficiency of a process? How can this ever be bad? More work-in-process inventory can be used to buffer multiple stage processes. Specifically, it can help with blocking or starving. Blocking is when the activities in the stage must stop because there is no place to deposit the item just completed. Starving is when the activities in a stage must stop because there is no work. Buffer inventories between operations can help relieve these problems, and improve the efficiency of the overall process. Increasing work- in-process inventory can be bad in that it involves more investment in inventory, as well as taking-up valuable floor space. Also, the JIT philosophy view work-in-process as being negative for a variety of reasons (more on JIT in a later chapter). 4.
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Chap006 - Chapter 06 - Process Analysis CHAPTER 6 PROCESS...

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