Production & Operation Management Essay
More on Processes
Multi-product, multi-flow process analysis
– So far: 1 product, 1 flow
– Differing process times, yield issues, machine breakdown
– Product-mix becomes critical in multiple flows
– Implications in capital investment, scaling business, and risk management Calculating capacity when you have
– Multiple flows
• With the same processing time at each resource
• With different processing times at a single resource
– Yield issues
– Machine Breakdown
Measure: Implied Utilization
Implied Utilization captures the mismatch between the capacity requested from a resource by demand and the capacity currently available at …show more content…
• Let F be the factory capacity in units/hr
• The Table Assembly Line accounts for (5+6)=11 units out of a total of 30 units of demand, i.e., (11/30) of demand
• Its capacity is 10 units/hr and is the bottleneck
• So, (11/30)*F=10 units/hr
• F=27.27 units/hr
Step 1. Find the bottleneck.
Need to know demand!!!
Bottleneck is resource with lowest capacity
Bottleneck is resource with highest utilization
For a single flow, the lowest capacity resource is the same as highest utilization resource
Step 2. Bottleneck governs the process capacity.
Process capacity equals the bottleneck resource capacity
Depends on the bottleneck resource AND the demand mix 7
Your Turn: Change in Demand Mix
Suppose overall demand remains the same, but the demand-mix changes
% of Demand
Which resource is the bottleneck?
What is the capacity of the factory in units/hr?