Tutorial 1: Q1 answer

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 thats hard to copy
Good Processes add value
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, Littles law guides the relationship among flow time, flow rate and
inventory!
Technology plays key role in process performance
 Tutorial 1: Q2 answer
Assumptions: process is in steady state and process constrained (i.e. plenty of supply and demand)
Process A 36
Process Capacity = 1/36+1/35 = 0.056349 apples/second
35
Inventory = 1/36*36+1/35*35 = 2 apples
Process B
Process Capacity = 1/24 = 0.041667 apples/second
24 18
Inventory = (24+18)*0.041667 = 1.75 apples
Process C
Process Capacity = 1/24 = 0.041667 apples/second
18 24
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
Capacity = 1/17 = 0.058824 apples/seconds 17 12
Inventory = (17+12)*0.058824 = 1.70 apples
Process E
Capacity = 1/17 = 0.058824 apples/seconds
12 17
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
 Tutorial 1: Q3 answer
Components Finished Xootrs

Activity 1 Activity 2 Activity 3

13 minutes 11 minutes 8 minutes

Answer:
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%.