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Bottleneck resource
Utilization rate
Throughput time
WIP
Littles Law:
Session 4
Today
Team Presentations
Lecture (Kristens cookies and additional
comments on capacity management)
Session 4
Operations Management
Team Presentations
Session 4
Operations Management
Response Time
Session 4
Operations Management
Process Flow
What are the inputs?
What are the outputs?
What are the activities?
Session 4
Operations Management
YOU
MIXER
TRAY
ROOMIE
OVEN
OVEN
TRAY
TRAY
MIX
LOAD
TRAY
SET
OVEN
ROOMIE
TRAY
ROOMIE
TRAY
DOUGH
Session 4
BAKE
Operations Management
COOL
PACK
PAY
12
16
20
24
28
32
Time
Resource
Operations Management
36
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
Resource
12
16
20
24 26 28
32
36
You
Oven
Tray
Operations Management
RM
Session 4
Operations Management
10
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
Resource
12
16
20
24 26 28
32
36
You
Oven
Tray
Operations Management
RM
11
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
Resource
12
16
20
24 26 28
32
36
You
Oven
Tray
Operations Management
RM
12
Session 4
Operations Management
13
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
Resource
12
16
20
24 26 28
32
10
36
You
Oven
Tray
Operations Management
RM
14
Bottleneck Analysis
It is clear that the bottleneck is the Oven
Session 4
Operations Management
15
Capacity
It seems that if they have enough trays they can
produce a dozen of cookies every 10 min.
240 26 = 214
Operations Management
16
YOU
MIXER
TRAY
ROOMIE
OVEN
TRAY
MIX
LOAD
TRAY
SET
OVEN
OVEN
TRAY
ROOMIE
TRAY
ROOMIE
TRAY
DOUGH
TIME:
BAKE
COOL
MIXER:
6 minutes
PACK
PAY
TOTAL TIME
YOU:
ROOMIE:
Session 4
6 + 2= 8 minutes
1 + 2 +1 = 4 minutes
OVEN:
TRAY:
19 minutes
1+ 9 = 10 minutes
Operations Management
17
YOU
MIXER
TRAY
ROOMIE
OVEN
TRAY
MIX
LOAD
TRAY
SET
OVEN
OVEN
TRAY
ROOMIE
TRAY
ROOMIE
TRAY
DOUGH
TIME:
ROOMIE:
Session 4
COOL
PACK
PAY
Dozens / Day = 22
TOTAL TIME
YOU:
BAKE
6 + 2= 8 minutes
MIXER:
1 + 2 +1 = 4 minutes
OVEN:
6 minutes
TRAY:
19/2 minutes
1+ 9 = 10 minutes
Operations Management
18
YOU
MIXER
TRAY
ROOMIE
OVEN
TRAY
MIX
LOAD
TRAY
SET
OVEN
OVEN
TRAY
ROOMIE
TRAY
ROOMIE
TRAY
DOUGH
TIME:
BAKE
COOL
18
10
PACK
PAY
TOTAL TIME
YOU:
6 + 2= 8 minutes
ROOMIE:
Session 4
MIXER:
1 + 2 +1 = 4 minutes
OVEN:
6 minutes
TRAY:
2+ 18 = 20 minutes
Operations Management
19
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
12
16
20
24 26
28
32
36
10
Resource
You
Oven
Tray 1
Tray 2
Operations Management
20
RM
RM
Session 4
Operations Management
21
Capacity Investment
Should we invest in a second Oven?
Session 4
Operations Management
22
BAKE
SET OVEN
LOAD
MIX
Time
12
16
20
24 26
28
32
36
Resource
You
You
Oven
Tray
Operations Management RM
RM
23
Bottleneck Analysis
Who is the bottleneck now?
The entrepreneur
Session 4
Operations Management
24
Bottleneck Analysis
Your capacity:
Oven capacity:
Mixer:
Roommate
Operations Management
25
Session 4
Operations Management
26
Economic Analysis
Having two ovens increase the capacity from
60/10=6 dozens per hour to 60/8=7.5 dozens per
hour.
What is the value of the additional oven?
(27-22)*300*Profit per dozen =
New capacity
# of selling days
Old capacity
Operations Management
27
Session 4
Operations Management
28
Two Ovens
Order Size: 2 Dozens
PAY
PACK
COOL
BAKE
SET OVEN
LOAD
MIX
Time
Resource
You
12
16
20
24 26
28
32
36
You
Oven
Tray
Operations Management
RM
29
YOU
MIXER
TRAY
ROOMIE
OVEN
TRAY
MIX
LOAD
TRAY
SET
OVEN
OVEN
TRAY
ROOMIE
TRAY
ROOMIE
TRAY
DOUGH
TIME:
TOTAL TIME
BAKE
COOL
18
10
PAY
YOU: 6+4 = 10
MIXER:
ROOMIE:
Session 4
PACK
Operations Management
TRAY:
30
Summary
Tools & Techniques
Identification of Bottleneck
System Capacity
Throughput Time
Concepts
Session 4
Operations Management
31