Production & Operation Management

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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
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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?
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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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