OM Study guide

# OM Study guide - Review for the final To compute process...

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Review for the final! To compute process capacity, we need to compute the capacity of each resource or set of resources in parallel Capacity of a resource or a set of resources in parallel: maximum amount the resource(s) can produce in a given time unit Activity time: time it takes to process one flow unit by one resource (can be the sum of successive task times) Supply constrained process: Process capacity<Demand Rate Designed CT> Requested CT Resource Utilization= flow rate/ resource capacity Process utilization= flow rate/ capacity With a single flow units Bottleneck = resource with the least capacity With multiple flow units (more general rule) Bottleneck = resource with highest implied utilization Bottleneck may shift when demand pattern changes! In both cases The process capacity cannot be increased without increasing the bottleneck capacity! Line balancing:   See if you can achieve the same flow rate with fewer workers This will reduce the cost of direct labor and increase average labor utilization because it will decrease idle time See if you can increase flow rate with the same number of workers by reallocating tasks from bottleneck resources to non-bottleneck resources or allocating more workers to the bottleneck task(s) This will reduce the cost of direct labor and increase average labor utilization because it will decrease cycle time and hence idle time See if you can reduce rush hour flow time by having different tasks performed at the same time, whenever possible This will improve the customer’s experience Design capacity: maximum output rate or service capacity an operation, process, or facility is designed for. Effective capacity: design capacity minus allowances such as personal time, maintenance, and scrap. Actual output: rate of output actually achieved – cannot exceed effective capacity If the setup occurs at the bottleneck step and the process is capacity-constrained, it is desirable to increase the batch size, as this results in a larger process capacity and a higher flow. If the setup occurs at a nonbottleneck step or the process is demand-constrained, it is desirable to decrease the batch size, as this decreases inventory as well as flow time Single minute exchange of die (SMED) is one of the many lean production methods for reducing waste in a manufacturing process. It is a concept that says all changeovers (and startups) can and should take less than 10 minutes . Internal setup tasks can only be done when the machine is stopped. External setup tasks can be done while the machine is still operating. Little’s Law

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Inventory (I) = Flow Rate (R) X Flow Time (T) 5 Reasons to hold inventory Pipeline inventory: basic inventory on which the process operates. Reflects the time a flow unit has to spend in the process in order to be transformed from input
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OM Study guide - Review for the final To compute process...

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