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CHAPTER 7
CHAPTER 7
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Introduction
Growth
Maturity
Decline and turnaround
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Exhibit 7.1
Characteristics
of Different
Process Types
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Exhibit 7.2
Product-Process Matrix
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Exhibit 7.3
The Service
Positioning Matrix
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We divided the
work; but stood
together.
- Mr. John Ringling, Ringling Bros., Bamum & Bailey Circus,
1907
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Exhibit 7.4 The Hierarchy of Work and Cascading Flowcharts for Antacid Tablets
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Exhibit 7.5
Automobile Repair Flowchart
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Exhibit 7.7
Value Stream Map for
Restaurant Order
Posting and Fulfillment
Process
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or
Utilization (U) =
Demand Rate
[7.2]
[Service Rate Number
of Servers]
OM3 Chapter 7 Process Selection, Design, and Analysis
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Solved Problem
An inspection station for assembling printers receives 40
printers/hour and has two inspectors, each of whom can
inspect 30 printers per hour. What is the utilization of the
inspectors? What service rate would be required to have
a target utilization of 85 percent?
Solution
The labor utilization at this inspection station is calculated
to be 40/(2 30) = 67%. If the utilization rate is 85%, we
can calculate the target service rate by solving the
equation:
85% = 40/(2 SR)
1.7 SR = 40
SR = 23.5 printers/hour
OM3 Chapter 7 Process Selection, Design, and Analysis
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Littles Law
Flow time, or cycle time, is the average time it
takes to complete one cycle of a process.
Littles Law is a simple formula that explains the
relationship among flow time (T ), throughput (R ),
and work-in-process (WIP ).
Work-In-Process = Throughput Flow Time
or
WIP = R T [7.3]
If we know any two of the three variables, we can
compute the third.
OM3 Chapter 7 Process Selection, Design, and Analysis
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Solved Problem
Suppose that a voting facility processes an
average of 50 people per hour and that, on
average, it takes 10 minutes. What is the
average number of voters in the process? for
each person to complete the v
Solution
WIP = R T
= 50 voters/hr (10 minutes/60 minutes per
hour)
= 8.33 voters
OM3 Chapter 7 Process Selection, Design, and Analysis
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Solved Problem
Suppose that the loan department of a bank
takes an average of 6 days (0.2 months) to
process an application and that an internal audit
found that about 100 applications are in various
stages of processing at any one time. Using
Littles Law, we see that T = 0.2 and WIP = 100.
What is the throughput? the v
Solution
R = WIP/T = 100 applications/0.2 months
= 500 applications per month
OM3 Chapter 7 Process Selection, Design, and Analysis
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Solved Problem
Suppose that a restaurant makes 400 pizzas per
week, each of which uses one-half pound of
dough, and that it typically maintains an
inventory of 70 pounds of dough. In this case, R
= 200 pounds per week of dough and WIP = 70
pounds. What is the average flow time?
Solution
T = WIP/R = 70/200
= 0.35 weeks, or about 21/2 days.
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