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# We will use output per labor hour as the productivity

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We will use output per labor hour as the productivity measure in many examples. Productivity = output / input

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12 Example 1-envelop stuffing __ workers, bottleneck: __, capacity: ___ units / hour __ workers, bottleneck: __, capacity: ___ units / hour __ workers, bottleneck: ____ capacity: ____ units / hour 1 30 4 5 3 8 2 2 5 3 Process. 1 1 30 2, 3, 4, 5 18 Process 2 1, 2 32 3, 4, 5 16 1, 2 32 Process 3 1,30 2,2 3,8 4,5 5,3 What information is needed for a comparison?
How was capacity calculated? Remember capacity is determined by the bottleneck. Process 1 & 2 30 sec/unit 1/30 units/sec * 3600 sec/hour = 120 units / hour Process 3 stage one makes 2 units in 32 seconds, so 1 unit in 16 seconds: 16 sec/unit 1/16 units/sec * 3600 sec/hour = 225 units / hour Mgmt 361 Chapter 2 - Process Analysis 13

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14 Example 1-envelop stuffing 5 workers, bottleneck: 1, capacity: ___units / hour 2 workers, bottleneck: 1, capacity: ___ units / hour 3 workers, bottleneck: both capacity: ___ units / hour 1 30 4 5 3 8 2 2 5 3 Pr. 1 1 30 2, 3, 4, 5 18 Process 2 1, 2 32 3, 4, 5 16 1, 2 32 Process 3 1,30 2,2 3,8 4,5 5,3 Process Productivity=Capacity/#Workers 1 2 3 __________Units per hour per worker _________ Units per hour per worker ________ Units per hour per worker
Which Process is Best ? Process 1 ? Process 2? Process 3? Mgmt 361 Chapter 2 - Process Analysis 15

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16 1: 20 4: 40 5: 30 2: 50 3: 10 7: 20 6: 30 Task number : Time Precedence Diagram Example 2 *Think through what this means
17 Process Flow Diagrams 1: 20 4: 40 5: 30 2: 50 3: 10 7: 20 6: 30 Example 2 Task Number : Time 1 20 4 40 3 10 2 50 5 30 7 20 6 30 A 1: 20 2: 50 M1 2: 50 M2 3: 10 4: 40 P1 4: 40 P2 5: 30 7: 20 6: 30 B 2 50 6, 7 50 3, 4 50 1, 5 50 C 2, 3 60 7 20 5, 6 60 1, 4 60 D Which One is Best? Run some numbers.

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Analyze Each Potential Arrangement A B C D Input (Workers, labor) seconds /units total seconds per unit for bottleneck units per second (1/bottleneck) units per min ((units/sec) x 60)) units per hour ((units/min) x 60)) capacity (units/time frame) productivity (out/input) (capacity/input) Mgmt 361 Chapter 2 - Process Analysis 18
19 Process Flow Diagrams 1: 20 4: 40 5: 30 2: 50 3: 10 7: 20 6: 30 Example 2 Task Number : Time 1 20 4 40 3 10 2 50 5 30 7 20 6 30 A 1: 20 2: 50 M1 2: 50 M2 3: 10 4: 40 P1 4: 40 P2 5: 30 7: 20 6: 30 B 2 50 6, 7 50 3, 4 50 1, 5 50 C 2, 3 60 7 20 5, 6 60 1, 4 60 D 7 9 4 4

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20 Process Flow Diagrams Example 2 1 20 4 40 3 10 2 50 5 30 7 20 6 30 A 1: 20 2: 50 M1 2: 50 M2 3: 10 4: 40 P1 4: 40 P2 5: 30 7: 20 6: 30 B 2 50 6, 7 50 3, 4 50 1, 5 50 C 2, 3 60 7 20 5, 6 60 1, 4 60 D Capacity units/hr Productivity units/worker A B C D
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