Machine 1

Machine 2

Machine 3

CAPACITY ANALYSIS
(Worker 1)
(Worker 2)
CAPACITY OF RESOURCE = 1 / Activity time (Worker 3)
6.
For any demand-constrained process that produces a single
CAPACITY
OF PROCESS =Setup
Capacity
of Bottleneck
Setup time
time
Setup time
30min
20min
45min
type of product, we can always claim that
FLOW ANALYSIS
Which(Demand
of the following
Little's Law is NOT
a) the process flow rate cannot be increased withoutFLOW RATE = Minimum
Rate,statement
Processabout
Capacity)
true? Step 2:
1:
Step 3:
increasing the demand
CYCLE Step
RATE
= 1 / FLOW
RATE
a) ItActivity
depicts
average
inventory,
Activity Time
Timethe relation among
Activity
Time
b) the cycle time of the process always equals the flow
UTILIZATION
OF RESOURCE
= Flow
Rate
/ Resource
Capacity
average
flow rate
and
average
flow
time of a process
0.25min/part;
0.2min/part;
0.15min/part;
time
UTILIZATION OF RESOURCE
PARALLEL
Flow
Rate / Resource
b) It canIN
work
with random=task
times
c) there is at least one resource in the process that has
It can work for different sequences of service
Capacity 1. What is thec)capacity
of this
process if thethat
batch
is chosen
a utilization of 100%
d) It does
not
apply
havesize
setups
and
UTILIZATIONwith
OF35
PROCESS
= Flow
Rateto/ processes
Process Capacity
parts?
produce outputs in batches
d) None of the above
IMPLIED UTILIZATION
= Demand
/ Resource Capacity unit/min;
Capacity
of stageRate
1 =35/(30+0.25*35)=0.9
Task
Task Description
Duration (in
RUSH ORDER TIME
=supply-constrained
Sum of
of stage
all activity
times
A
process
involves 3 tasks inunits/min;
sequence
Capacity
2 =35/(20+0.2*35)=1.3
minutes)
LABOR
with
activity
CONTENT
times
&
of
LINE
10
minutes/unit,
BALANCING
6
minutes/unit,
and 5
Capacity of stage 3 =35/(45+0.15*35)=0.7 units/min;
1
Print the text on the
20
minutes/unit,
respectively.
Currently
one worker is assigned to
BUSY TIME OF SINGLE
WORKER
=
Activity
time
Thus, the process capacity is 0.7 units/min (or 42
each task. What is the average labor utilization?
paper
BUSY TIME OF ALL
WORKERS
= Activity Time
units/hr);
stageIN
3 PARALLEL
is the bottleneck
2
Cut the paper into pages
8
BUSY TIME OF SINGLE
WORKER
IN
PARALLEL
The bottleneck is the first resource = Activity Time / #
3
Bind the pages
10
workers 2. SupposeThe
thecycle
process
with a batch size of 35 parts
time is
willoperated
be 10 minutes
The WORKER
labor
content
will
be(i.e.,
21Time
minutes/unit
IDLE
TIME
OF
SINGLE
=
Cycle
Activity
and
operated
at
full
capacity
theflow
rate Time
is exactly
4
Print the title on a cover
2
the average
utilization
is
equal
to Thus,
theWORKER
process
capacity
you obtained
in question
IDLE TIME OF
SINGLE
INlabor
PARALLEL
= [(Cycle
Time 1).
5
Attach the cover to the
5
21/30=70%
what
is the
utilization
Activity Time)Then,
/ (# workers
in parallel)
] of each worker?
Worker
Activity time (min)
Capacity
this case,
the
flow
rate
will=be
0.7units/min
(or
IDLE TIME OF ALLInWORKERS
IN
PARALLEL
[(Cycle
Time
# in
Xrootr
uses an
assembly
process
that
consists
of 3*steps
(units/hr)
42units/hr).
The
utilizations
of
the
workers
are
0.7/0.9,
workers in parallel) sequence
(ActivityTime)]
steer assembly, frame assembly, and deck
1
20
3
0.7/1.3,
and
0.7/0.7.
assembly
done
by 3times
different
workers
without any setup
LABOR CONTENT =
Sum of
activity
with
labor
times.
The
task
times
are
8
minutes/unit,
6 minutes/unit,
and
2
10
6
We
can
also
compute
the
direct
cost
of
labor per flow
IDLE TIME = [(Cycle Time * # of workers) (Labor Content)]
3 minutes/unit,
respectively.
How
long doescalculation:
it take for theThe
unit.
For
that,
we
can
do
the
following
3
10
6
AVERAGE LABOR UTILIZATION
= [(Labor
Content) with
/ (Cycle
Time * #
process to produce
an empty
direct
cost of labor100
perunits
flow(starting
unit=number
of
4
5
12
of Workers)]
system)?
workers*wage
Cycle time = 8 rate/flow
minutes
Bottleneck is worker 1, cycle time is 20 minutes, rush order flowAVERAGE LABOR UTILIZATION
= [(Laborrate=3*$12/42=$0.86
Content) / (Labor Content +
3.
Suppose
the
demand
is
30 =units
per hour. What is the best
Rush order flow time
17 minutes
time is 45 minutes
Total Idle Time)]
batch size
that
tominutes
minimize
Time
to should
produce be
100implemented
units = 17 + 99inXorder
8 = 809
COST OF DIRECT LABOR
=
(Labor
Content
+ Total Idle
Time)
* Wages
Worke Activi Cycl Idle Utilizati
the work-in-process inventory while at least make the process
r
ty
e
tim
on
COST OF DIRECT LABOR
=
Wages
*
Cycle
Time
*
#
of
Workers
There
is a very popular hotel which always has on average
satisfy the
demand?
time
tim
e
COST OF DIRECT LABOR
= [(Wages
*#
of Workers)]
/ (Flowthat
Rate)]
480 customers
in the
hotel. It is reported
We can use thestaying
procedure
given
in the lecture
tothere
find
are
2
new
customers
arriving
and
2
current
customers
leaving
(min)
e
(mi
INVENTORY
METRICS
(LITTLE
LAW)
the
best
batch
size.
every 30 minutes. How long on average does a customer stay
(mi
n)
I = R*T
Step
(1):
Since
all three
steps
the
in the
hotel?
(Assuming
the
hotel involve
operatessetup,
24 hours
per day)
n)
AVERGAGE WIP INVENTORY
= Average
Flow
* Average
Flowrate
targeted process
capacity
willRate
just be
the demand
1
20
20
0
100%
Time
30Inventory=480
units/hr or 0.5 unit/min
FlowInventory
rate=4we
customers/hr
24*4Sold
customers/day
FLOW TIME = Average
/ Cost
of and
Goods
2
10
20
10
50%
Step
(2-3):
solve
the
targeted
batch size for each
Flow
time=480/(24*4)=5
days
INVENTORY
TURN
=
365
Days
/
Flow
time
stage
3
10
20
10
50%
HOLDING COST = stage
[(Flow
Time
/ 365
Days) * (Annual
Holding
Cost)]
B/(30+B*0.25)=0.5,
which
B=17.14
Dells1:
inventory
holding cost is 30%
per gives
year, its
cost of goods
4
5
20
15
25%
SETUP
TIME
AND
BATCHING
units
sold is $100 million per year, and its average inventory is $20
Average labor utilization=labor content/(cycle time*number of CAPACITY OF RESOURCE
= [(Batch
Size)
/ (Setup
Time
(Batch Size
stage
2: How
B/(20+B*0.2)=0.5,
which
gives +
B=11.11
units
million.
fast does
Dell turn
its inventory?
workers)=45/80=56.25%
* Time per Unit))] stage 3: B/(45+B*0.15)=0.5, which gives B=24.32
The direct cost of labor per flow unit=number of workers*wage CAPACITY OF
Average
inventory =
is $20million,
flow *rate
is $100million
units
SET OF
RESOURCE
[(Batch Size
# of
Resourcesper
year, and thus the flow time is 1/5 year, which gives an
rate/flow rate=4*$15/3=$20
Step
(4):
We
pick
the
largest
B
found
in
Step
(2-3) in
Parallel) / (Setup Timeinventory
+ (Batch
Time
Unit)]
turnSize
of 5 *
times
perper
year
to (Demand
satisfy theRate,
demand
rate and
minimize the
TARGET CAPACITYorder
= Min
Capacity
of Resource
without
inventory in the process, which is 24.32 units.
Setup)
TARGET CAPACITY = [(Batch Size) / (Setup Time + (Batch Size * Time