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L06_LittlesLaw_After - Lecture 06 Littles Law Slide 1 Le a...

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Slide 1 Lecture 06 Little s Law
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Slide 2 Le arning  O bje c tive s Understand basic elements of a process Identify inventory, flow time, and throughput in a process Understand Little’s Law and how to apply it
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Slide 3 Process View and Little’s Law 
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Slide 4 Recall: Subway Manager’s view Customers’ view The same process! Each customer  = 1 order of sub meal Processing time Bread Cheese Meat Vegetable Dressing Drinks A sub meal Workers Waiting time Starving  customers Happy  customers  with subs Workers
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Slide 5 Three Measures of Process Performance Work in process inventory : the number of flow units contained within the  process. Component, semifinished product, sub assembly. Number of customers waiting for service. Number of patients in the interventional radiology waiting room. Number of students in the  O M 335  classroom. Number of plasma TVs at a Circuit city store. Tons of crude oil stored at Houston refineries. Number of seats on a Southwest flight. Number of insurance claims or tax returns at the IRS.
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Slide 6 Three Measures of Process Performance cont. Flow time : the time it takes one flow unit to get through the process. Production: waiting time of an item to be processed Service: important performance metric. 25 minutes is the flow time for my hair cut.  3 hours is the flow time to drive to Austin from Dallas Flow rate / throughput : the rate at which the process is delivering output  (measured in units/unit of time). The maximum rate of the process is called the  capacity  of the process.  300 students graduate per year from MBA program. 5 cars enter the campus parking lot every minute. 17 M barrels of oil is refined per year in the U.S.
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Slide 7 Three Measures: Example U.S. Immigration Champagne  Industry MBA Program Large PC  Manufacturer Flow unit Application for  immigration benefit Bottle of  champagne MBA student Computer Flow rate /  throughput Approved or rejected  visa cases: 6.3  million per year 260 million bottles  per year 600 students per  year 5,000 units per  day Flow time Average processing  time: 0.63 year Average time in  cellar: 3.46 year 2 year 10 days Inventory Pending cases: 4.0  million cases 900 million bottles 1,200 students 50,000  computers
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Slide 8 Performance Measures @ Subway “Between 11 am and 1pm today, 120 customers were served” Flow rate? “It took 1 min 30 sec to make my Sub but I first had to wait for one minute  before placing my order”       Flow time?
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