Process Analysis - Class Notes - Mod 2 - Part 2(1)

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    MGMT 361Operations Management

    OM)

    Process Analysis part 2(multiple stage processes Littles Law)

    Prof Julia A Kalish

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    Every Day Starts theDay Before

    Mgmt 361 2Module 2 - Process Analysis

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    Last Section : Precedence diagrams and flow charts

    Design parameters/ Run-Time parameters

    Analysis of Single Stage Processes

    This Section :

    Littles Law Analysis of Multiple Stage Processes

    Overview of Class:

    Mgmt 361 Module 2 - Process Analysis 3

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    Quick Repetition of last ClassSequential versus Parallel Machines

    Capacity determined by slowest stage:Bottleneck: Stage 1 - Capacity : 120 [units/hour]((1/30) * 60 * 60) = 120

    1

    30

    4

    5

    3

    8

    2

    2

    5

    3

    Capacities add:Capacity of M1 = 1/10 [units / sec]

    = 360 [units / hour]Capacity of M2 = 225 [units / hour]Capacity of M3 = 180 [units / hour]

    System capacity = 765 [units / hour]

    Time in Seconds

    M110

    M320

    M216

    Time in Seconds

    DoNOT

    add oraverage CT:

    CT = 1 / Capacity

    Sequential Machines:

    Parallel Machines:

    Mgmt 361Module 2 - Process Analysis

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    CT = 1 / Capacity= 3600 / 765 = 4.706 [sec / unit] or

    765/60 = 12.75, 12.75/60 =.2125, 1/.2125 = 4.706 sec/unit

    CT = 1 / CapacityCapacity = 1/CT

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    Dimensional Analysis:Quantity [Q], Time [ T ] and Cost [$]Capacity, output rate, input rate: [Q/T]

    Cycle time: [T/Q], WIP [Q] Throughput Time (TPT) : [ T ]

    __________ displaytasks (activities) that have adefined starting and endingtime on a resource .

    M1

    M2

    M3

    Buffer

    6 10 14 18 22 26 30 34 38 42

    5

    4

    4

    5

    6

    6

    6

    2

    1

    1

    2

    3

    3

    3

    8

    7

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    8

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    Alternateterminology Operations tasks, activities.

    ____________ ( jobs ) materials, work orders, customers, patients, products,projects, cash, claims forms.Output rate flow rate (FR) , production rate, throughput rate

    __________ flow time (FT) , manufacturing lead time (MLT)Stage station

    Idle time ignored in WIP calculations

    Mgmt 361 Module 2 - Process Analysis 5

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    Work in Process & Throughput ______________ (WIP) includes the set of unfinished

    items for products in a production process. These items arenot yet completed but either just being fabricated or waitingin a queue for further processing or in a buffer storage.

    Optimal production management aims to minimize work inprocess. Work in process requires storage space, represents

    bound capital not available for investment and carries aninherent risk of earlier expiration of shelf life of the products. Average WIP Avg. number of jobs in the process .

    ______________ (TPT) aka flow time (FT) Average TPT Avg. time for a transaction to go through a

    stable process. Minimum Throughput Time (TPT) How fast a transaction

    goes through the process when the process is empty.Mgmt 361 Module 2 - Process Analysis 6

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    Parameter relationships

    When a process becomes stable, there is a relationship betweenprocess parameters _______________________.

    WIP = Flow time * Flow rate

    = FT * FR[ Q ] = [ T ] * [ Q / T ]

    WIP = Flow Time / Cycle Time= FT / CT = TPT / CT

    [ Q ] = [ T ] / [ T / Q ]

    Inventory = Throughput rate * Flow time

    Quantity [Q]Time [ T ]Cost [$]Capacity, output rate, input rate: [Q/T] Cycle time: [T/Q]WIP [Q] Throughput Time (TPT) : [ T ]

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    5 min

    Stage 1

    4 min.

    Stage 2

    Example: 2.5

    5 min / unit4 min / unit

    Stage 15 min / unit12 units / hour5 + 4 = 9 min

    CT for Stage 1:CT for Stage 2:

    Bottleneck:Process CT :

    Process Capacity:Min TPT:

    Part (a)Design parameters

    Stage 1

    Stage 2

    M1: 5 min

    M2: 5 min

    M3: 4 min

    CT for Stage 1:CT for Stage 2:

    Bottleneck:Process CT :

    Process Capacity:Min TPT:

    Example: 2.6

    2.5 min / unit4 min / unit

    Stage 24 min / unit15 units / hour5 + 4 = 9 min

    Mgmt 361 Module 2 - Process Analysis 8

    DoNOT add or

    average CT:

    CT = 1 / Capacity

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    5 min

    Stage 1

    4 min.

    Stage 2

    Example 2.5 Two-Stage Serial Process

    CT for Stage 1:CT for Stage 2:

    Bottleneck:Process CT :

    Process Capacity:Min TPT:

    Part (a)Design parameters

    Bottleneck: largest CT or smallest Capacity

    Process CT=Bottleneck CTProcess Capacity=Bottleneck Capacity

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    Part (b): Schedule a new job every 5 minutesstarting at 0.

    Design parametersCT = 5 min / unitBottleneck: Task 1Capacity = 12 units / hour

    Minimum TPT = 9 min

    M1, Task 15 m

    M2, Task 24 m

    Littles formula: WIP = TPT/ CT 1.8 [units] = 9 [min] / 5 [min / unit]

    CT:

    Average TPT:

    WIP M1:M2:

    Total :

    5 min / unit

    9 min

    1.00 units0.80 units

    1.80 units

    14

    5

    9

    0

    19

    10

    24

    15

    Example: 2.5 Continued

    1 2 3 4 5 6 7 8 9

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    Stage 1

    Stage 2

    M1: 5 min

    M2: 5 min

    M3: 4 min

    CT for Stage 1:

    CT for Stage 2:Bottleneck :Process CT :

    Process Capacity:Min TPT:

    1/24 h / u = 2.5 min / unit

    4 min / unitStation 24 min / unit1/4 u/min = 15 units / hour5 + 4 = 9 min

    Example 2.6-A Hybrid Process

    Capacity for stage 1 :

    M1: 12 [units / hour]M2: 12 [units / hour]Total: 24 [units / hour]

    Design parameters

    Mgmt 361 Module 2 - Process Analysis 11

    (1/4) * 60 = 15

    (1/5 = .2 .2 + .2 = .4 1/.4 = 2.5)

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    Example 2.6 - Schedule 1

    Send 2 jobs every 8 min. One to M1, one

    to M2. Input rate = 15 units/hr(2/8) * 60 = 15

    M1

    M2

    Bu

    M3

    Cycle time: 4 min / unitOutput rate: 15 units/hr

    Average TPT: (9 + 13) / 2

    = 11 min.

    WIP

    M1M2BuM3

    Total

    5/8 = 0.6255/8 = 0.6254/8 = 0.5008/8 = 1.000

    2.750

    Littles Formula

    WIP = TPT / CT2.75 = 11 / 4

    M34 mM2

    5 m

    M15 m

    Input rate = Capacity

    Mgmt 361 Module 2 - Process Analysis 12

    Bottleneck

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    Example 2.6 - Schedule 2

    Send a job to M1 at 0,8,16, .. And to M2 at 4, 12,20, Input rate = 15 units/hr. M34 mM2

    5 m

    M15 m

    M1

    M2

    M3

    Cycle time: 4 min / unit

    Output rate: 15 units/hr

    Average TPT: 9 min.WIP

    M1

    M2M3 (4/4)

    Total

    5/8 = 0.625

    5/8 = 0.6258/8 = 1.000

    2.250

    Littles Formula

    WIP = TPT / CT2.25 = 9 / 4

    Input rate=Capacity

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    Example 2.6 - Schedule 3: Input rate

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    Example 2.6 - Comparison of Schedules

    Littles Formula: WIP=TPT/CT

    Which schedule is better: Schedule 1 or 2 ?

    Schedule 2 : Same output rate (CT) with lower WIP & TPT

    M34 mM25 m

    M15 m

    Schedule 1: CT = 4, Avg. TPT = 11, WIP = 2.75

    Schedule 2: CT = 4, Avg. TPT = 9, WIP = 2.25

    Schedule 3: CT = 5, Avg. TPT = 9, WIP = 1.8

    Design parameters:

    CT = 4 min/unit

    Capacity = 15 units/hr

    Min TPT = 9 min

    Mgmt 361 Module 2 - Process Analysis 15