E.g. # of active and unfilled orders in an order-to-cash process WIP is a form of waste (cf. 7+1 sources of waste) Little’s Formula: WIP = ·CT = arrival rate (number of new cases per time unit) CT = cycle time Cycle Time & Work-In-Progress
ExerciseA fast-food restaurant receives on average 1200 customers per day (between 10:00 and 22:00). During peak times (12:00-15:00 and 18:00-21:00), the restaurant receives around 900 customers in total, and 90 customers can be found in the restaurant (on average) at a given point in time. At non-peak times, the restaurant receives 300 customers in total, and 30 customers can be found in the restaurant (on average) at a given point in time.1.What is the average time that a customer spends in the restaurant during peaktimes?2.What is the average time that a customer spends in the restaurant during non-peaktimes?
Exercise (cont.) 3.The restaurant plans to launch a marketing campaign to attract more customers. However, the restaurant’s capacity is limited and becomes too full during peak times. What can the restaurant do to address this issue without investing in extending its building?
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