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Time spent from the point of order to the point of delivery Capacity=1Cycle time=Unit of outUnit of timCycleTime=1Capacity=TimeUnit of OuBottleneck: smallest output capacity, longest cycle time; the capacity of it defines the capacity of the entire process. How do we address Bottleneck?Increase the number of resource unitsat the bottleneck. Buy another oven.Increase load batch of the bottleneck.Fit two pizzas into the oven.Increase scheduled availability of the bottleneck (overtime work).Have the oven operate for longer hours. Decrease unit load into the bottleneck.Different pizza design that could cook faster.Capacity Utilization:is the percentage of time spent actually workingon the product or on performing the service.Capacity Util=ActualworkWork that could havThe utilization of a specific operation can also be calculated by dividing the operation cycle time by the process cycle time.Specific Operation AverageCycleTProcessCycleTimeSteady State:A system is said to be in a steady state when the state of the system is independent of the time of the observation of this state.•A system after start up may not be in steady state until it has operated for a while. Most process measures apply only under the conditions when the production systemhas reached a steady state.Utilization is a trade-off; a choice reflecting your Operations Strategy & Capabilities (cost, quality, speed, flexibility, innovation)TPT: Little’s LawSumming task times or operating times does NOT generally result in a throughput time.May use output rates to calculate throughput time:Throughput time = WIP/Output rate•May also use cycle times:Throughput time = WIP * Cycle time•Each stage needs either effectivecapacities or effectivecycle times for Little’s Law calculations.