311_session_2_measures

311_session_2_measures - Measures Capacity Time and More...

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Measures: Capacity, Time, and More BUAD311 Operations Management Session 2 1
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Objectives Review: what are key concepts learned last time? How do we quantitatively evaluate a process? Capacity Time Other? ARES: Latest Starbucks Buzzword: ‘Lean’ Japanese Techniques 2
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Analyzing Business Process Inputs Outputs Think of a process as a flow . The unit being transformed is referred to as a job It can represent a customer, an order, material, money, information, etc. 3 Transformation Process
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Flow Rate Flow Rate : average number of jobs per unit of time. e.g., 30 customers per hour. The inflow rate and the outflow rate may fluctuate. In a stable environment: average inflow = average outflow rate Flow rate is also called throughput rate. 4
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Measure: Capacity Capacity is defined as the maximum number of unit that can be processed per unit of time. Examples: o A cashier can serve 20 customers per hour. o The capacity of a web server is 30,000 hits per min. o A doctor can perform 300 surgeries per year. o A stove can cook 20 hamburgers per min or 0.33333 per second. It is a rate; units are important!
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311_session_2_measures - Measures Capacity Time and More...

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