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Process Analysis
Session 2
February 8th, 2018
Remarks
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Last Class
• Introduction to OM
Today’s Class
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Process Analysis
Process
Inputs Outputs
Raw material, Goods,
Customers Services
Resource: Buffer:
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Customers
Leave bags Security check
with bags Cleared
Pick up
customers &
bags
Security check
Resource: Buffer:
Performance Measures
Input rate Throughput rate
Inventory [units]
[units/hr] [units/hr]
Station 1 Station 2
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Performance Measures
@
• 𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒 =
ABCD EFGH
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Worker A
Worker B
Worker C
Example
Station 1 Station 2 Station 3
Activity Time Activity Time Activity Time
(secs) (secs) (secs)
Greet customer 4 Onions 3 Wrap napkins and bag 6
Take order 3 Lettuce 7 Offer fresh value meal 2
Get bread 5 Tomatoes 8 Offer cookies 2
Cut bread 4 Cucumbers 8 Ring on register 1
Meat 7
Cheese 3
Toasting 20
• Process flow diagram
• Performance measures: flow time, flow rate, cycle time, capacity of each resource and
the process
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Bottleneck
How to determine the flow rate of the irregular pipeline?
Bottleneck
Input
Capacity
• Is the bottleneck the activity with the longest processing time, i.e., activity 2?
• Is the bottleneck the resource that is required to perform the activity with the
longest time, i.e., Worker B?
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Example: Hospital
Doctor 1
4 min
Nurse
3 min
Doctor 2
4 min
Example 2
Rate in 75%
12 /hr 12 /hr 10 /hr
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Implied utilization
What is the maximum rate the line can handle? 8/hr (rate of bottleneck)
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Multi-unit Process
• Implied Utilization = Demand rate / Capacity rate, may>100%
• Actual Utilization = Throughput rate / Capacity rate, always ≤100%
Benchmark grades
10/hr
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Multi-unit Process
• Implied Utilization = Demand rate / Capacity rate, may>100%
• Actual Utilization = Throughput rate / Capacity rate, always ≤100%
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161 orders/hr B C
96 orders/hr
A E
4 orders/hr
D
78 orders/hr
7 orders/hr
92%
57%
Bottleneck is Station B
Throughput rate of process = 68 red orders/hr, 4 blue orders/hr, 72 orders/hr
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Worker A
Worker B
Worker C
• The (long-run)
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Process
• An insurance company processes 10,000 claims per year. The average processing
time is 3 weeks. How many claims are in the system on average? (Assuming 50
weeks in a year)
• Now, the company reduces its processing time by 80%. How many claims are in
the system on average?
• A manager can influence any one of these measures by controlling the other two.
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