Production & Operations

Management

Session 3-2

More on Processes

1

Outline

Multi-product, multi-flow process analysis

– So far: 1 product, 1 flow

– Differing process times, yield issues, machine breakdown

Big Takeaway:

– Product-mix becomes critical in multiple flows

– Implications in capital investment, scaling business, and risk management Calculating capacity when you have

– Multiple flows

• With the same processing time at each resource

• With different processing times at a single resource

– Yield issues

– Machine Breakdown

2

Measure: Implied Utilization

Implied Utilization captures the mismatch between the capacity requested from a resource by demand and the capacity currently available at
*…show more content…*

Processing time: 10 min / unit

10 mins

10 mins

10 mins

10 mins

10 mins

Flow Time (FT) = processing time= 10 mins for all units

Workstation capacity = Flow Rate

= (1/10) units/min*60 mins/hr = 6 units/hr

10

Ex. 2: Capacity with two processing times

Workstation makes two products

– Product 1 processing time 10 min / unit

– Product 2 processing time 12 min / unit

10 mins

10 mins

10 mins

12 mins

Product mix is 3:1, i.e. (3/4)th of the output is Product 1 and

(1/4)th of the output is Product 2

What is the capacity of the workstation?

11

Ex. 2: Capacity with two processing times

PT1=10 mins/unit

PT2=12 mins/unit

Think of a “typical” unit:

– Weighted average of FT1 and FT2

= (3/4)*10+(1/4)12=10.5 mins/unit

– NOTE THIS RELIES ON DEMAND MIX

Capacity of Resource

= (1/10.5)*60min/hr = 5.71 units/hr

Same as capacity of process because only one resource

12

Ex. 2 (Alternate way)

An alternate method is to consider time to make a cycle, i.e. 3 units of product 1 and one unit of product

2

– Total Processing Time for a cycle = 3*10 + 1*12 = 42 mins

(see

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