Chapter10_Handout_Bottleneck Analysis

Chapter10_Handout_Bottleneck Analysis - Chapter10Handout...

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Chapter 10 Handout Chapter 10 Handout Continuous Flow (Product Oriented  Continuous Flow (Product Oriented  Layout) and Bottleneck Analyses Layout) and Bottleneck Analyses Reference: Reference: Operations Management” by Operations Management” by Mark A. Vonderembse and Gregory P. White Mark A. Vonderembse and Gregory P. White
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Key Points: Capacity Capacity = organization’s ability to provide customer with goods and services they demand Estimating capacity System capacity vs. department capacity Capacity decisions Transparency 9.1
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Expanded Definition of Capacity 1. Managers need a yardstick to estimate capacity 2. Capacity = (max. rate of production/hour) X (number of hours) 3. Number of hours worked is affected: by overtime, second shift, preventive maintenance, and equipment failure 4. Rate of production is affected by: number of people assigned, equipment used and quality of materials 5. Capacity is a function of management decisions and ingenuity Transparency 9.2
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This note was uploaded on 01/22/2012 for the course 2341 13314 taught by Professor Camus during the Spring '11 term at Central Luzon State University.

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Chapter10_Handout_Bottleneck Analysis - Chapter10Handout...

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