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1. What are some of the new concepts, theories and tools we have learned from the first 2 lectures?

Lecture 1 on Introduction to OM

OM is the management of processes

A process is a set of activities/steps that together perform some defined function, to produce products and/or deliver services

Different characteristics of products and services

Process is the key competitive advantage that’s hard to copy

Measure and improve productivity is key to add value

Product, process and coordination technology plays key role in OM

OM needs to manage trade-off and interactions with other functions of an organization

Lecture 2 on Process Analysis

Flow unit and process flow diagram (or process map)

Process are normally combinations of Sequential and Parallel processes

Bottleneck steps in a process starves or blocks other steps

Key process performance measurements includes activity time (setup time + run time), Capacity, Flow

time, flow rate, utilization, inventory (including WIP), cycle time

When process is at steady state, Little’s law guides the relationship among flow time, flow rate and inventory!

Technology plays key role in process performance

Assumptions: process is in steady state and process constrained (i.e. plenty of supply and demand)

Process A

36

35  Process Capacity = 1/36+1/35 = 0.056349 apples/second

Inventory = 1/36*36+1/35*35 = 2 apples

Process B

Process Capacity = 1/24 = 0.041667 apples/second 24
18 18
24

Inventory = (24+18)*0.041667 = 1.75 apples Process C

Process Capacity = 1/24 = 0.041667 apples/second

If there is no buffer in between, inventory is (24+24)*1/24=2

If there is a buffer in between, inventory level can be high due to waiting in the buffer

Process D  17
12
12
17

Capacity = 1/17 = 0.058824 apples/seconds

Inventory = (17+12)*0.058824 = 1.70 apples

Process E

Capacity = 1/17 = 0.058824 apples/seconds

If there is no buffer in between, inventory is (17+17)*1/17=2

If there is a buffer in between, inventory level can be high due to waiting in the buffer Components
Activity 1
Activity 2
13 minutes
11 minutes Activity 3
8 minutes

Finished Xootrs a) Calculate the capacity at each step and then the capacity of the whole assembly process

Resources capacity at Step 1: 1/13 units/min = 4.61 units/hr;

Resources capacity at Step 2: 1/11 units/min = 5.45 units/hr;

Resources capacity at Step 3: 1/8 units/min = 7.5 units/hr.

Process capacity = bottleneck resource capacity (step 1) = 4.61 units/hr.

b) Calculate the throughput rate (flow rate) of the whole assembly process

Process capacity = 4.61 units/hr.

Demand is 25/7 = 3.57 units/hr. (25 units per day and 7 hours a day)

So, flow rate = demand rate = 3.57 units/hr.

c) Calculate the labor utilization at all the three steps

Step 1: 3.57 units per hr./4.61 units per hr.= 77.4%;

Step 2: 3.57 units per hr./5.45 units per hr.= 65.5%;

Step 3: 3.57 units per hr./7.5 units per hr. = 47.6%. 