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Based on Anupindi
5.1 Resources
Tp = unit load = total time resource works to process flow unit.
Example 5.1
See Table 5.1 for data.
Based on Anupindi
Theoretical capacity of a process = theoretical capacity of bottleneck Capacity = 1/unit load = 1 / Tp Resource Pool Capacity = cp / Tp
Example 5.2
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Scheduled availability = the amount of time that a resource is schedule for operation. Theoretical Capacity of a Resource Unit in a Pool = Rp = (cp / Tp) x Load batch x Scheduled availability Example 5.3
Based on Anupindi
Capacity utilization of a resource pool (rp) measures the degree to which resources are effectively utilized by a process.
Capacity utilization of a resource pool (rp) = Throughput / theoretical capacity of resource pool p = R / Rp Example 5.4 Given: R = 480 / day
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Example 5.8
See Table 5.12 for Activities, Work Content and Resource Pools for a Standard Shed
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2. Increase the load batch of resources in the bottleneck resource pool (increase scale of resource).
3. Increase the number of units in the bottleneck resource pool (increase scale of process). 4. Increase the scheduled availability of the bottleneck resource pool (work longer).
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Decrease the work content of bottleneck activities Never unnecessarily idle (starve) bottlenecks = eliminate bottleneck waits: Reduce variability if it leads to bottleneck waiting Synchronize flows to and from the bottleneck: sync when resources start an activity work smarter: Reduce & externalize setups/changeover times, streamline + eliminate non-value added work do it right the first time: eliminate rework/corrections work faster
Move work content from bottlenecks to non-bottlenecks create flexibility to offload tasks originally assigned to bottleneck to non-critical resource or to third party Can we offload tasks to cross-trained staff members? Increase Net Availability of Process work longer: increase scheduled availability increase scale of process: invest in more human and capital resources eliminate unscheduled downtimes/breakdowns Preventive maintenance, backups, etc.
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Additional Concepts
(Problem Scenario from Cachon and Terwiesch)
Assume three activities with times of 13 min/unit, 11 min/unit and 8 min/unit, each staffed by one worker. Assume an hourly rate of $12/hour and a demand of 125 scooters per week. Assume the process operates 35 hours per week.
Activity 1 Components
Activity 2
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Exhibit 4.1
TIME TO PROCESS A QUANITY X STARTING WITH AN EMPTY PROCESS
1. Find the time it takes the flow unit to go through the empty system: 2. In worker-paced line, this is the sum of the activity times In machine-paced line, this is the cycle time x the number of stations
Compute the capacity of the process (see previous methods). Since we are producing X units as fast as we can, we are capacity constrained; thus, Flow rate = Process capacity
3.
X 1 unit Time to make X units = Time through empty system + Flow rate
Conveyor Belt Components Finished Xootrs
Activity 1
Activity 2
Activity 3
Figure 4.4. : A machine paced process lay-out (Note: conveyor belt is only shown for illustration)
Cachon and Terwiesch, Matching Supply with Demand.
Q 4.1 a.
Exhibit 4.2
SUMMARY OF LABOR COST CALCULATIONS
1.
2.
Compute the capacity of all resources; the resource with the lowest capacity is the bottleneck (see previous methods) and determines the process capacity.
Compute Flow rate = Min {Available input, Demand, Process Capacity}; compute Cycle time =
1 Flow rate
3.
Compute the total wages (across all workers) that are paid per unit of time: Cost of direct labor =
4.
5. 6.
Compute the labor content of the flow unit: this is the sum of all activity times involving direct labor Add up the idle times across all resources (total idle time); then compute
Capacity
Process capacity Flow rate Cycle time Idle time {Total = 18.4 min/unit} Utilization Average Labor Utilization
Minimum {4.61 units/h, 5.45 units/h, 7.5 units/h} = 4.61 units/h Demand = 125 units/week = 3.57 units/hr Flow rate = Minimum {demand, process capacity} = 3.57 units/hr 1/3.57 hours/unit = 16.8 minutes/unit 16.8 minutes/unit - 13 minutes/unit = 3.8 minutes/unit 3.57 / 4.61 = 77% 16.8 minutes/unit - 11 minutes/unit = 5.8 minutes/unit 3.57 / 5.45 = 65.5% 16.8 minutes/unit - 8 minutes/unit = 8.8 minutes/unit 3.57 / 7.5 = 47.6%
Increase the capacity of the process by reallocating either workers from underutilized resources to the bottleneck or work from the bottleneck to the underutilized resources.
Worker 1
Utilization 3.57 / 4.61 = 77%
Worker 2
3.57 / 5.45 = 65.5%
Worker 3
3.57 / 7.5 = 47.6%