MGMT 361 Operations Management (OM)
Process Analysis part 2
(multiple stage processes & Littles Law)
Prof. Julia A. Kalish
1
Every Day Starts the Day Before
Mgmt 361
Module 2 - Process Analysis
Overview of Class:
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
Mgmt 361
Module 2 - Process Analysis
Quick Repetition of last Class
Sequential versus Parallel Machines
Sequential Machines:
CT = 1 / Capacity Capacity = 1/CT
1 30
2 2
3 8
4 5
5 3
Time in Seconds Parallel Machines:
Capacity determined by slowest stage: Bottleneck: Stage 1 - Capacity : 120 [units/hour] ((1/30) * 60 * 60) = 120
M1 10 M2 16 M3 20
Time in Seconds
Mgmt 361
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]
Do NOT add or average CT: CT = 1 / Capacity
CT = 1 / Capacity = 3600 / 765 = 4.706 [sec / unit] or 765/60 = 12.75, 12.75/60 =.2125, 1/.2125 = 4.706 sec/unit
4 Module 2 - Process Analysis
Dimensional Analysis: Alternate terminology
Quantity [Q], Time [ T ] and Cost [$] Capacity, output rate, input rate: [Q/T] Cycle time: [T/Q], WIP [Q] Throughput Time (TPT) : [ T ]
Operations tasks, activities. ____________ ( jobs ) materials, work orders, customers, patients, products, projects, cash, claims forms. Output rate flow rate (FR), production rate, throughput rate __________ flow time (FT), manufacturing lead time (MLT) Stage station
M1 2 1 3 3 1 2 3 4 5 4 5 6 6 6 7 8 7 8 9 9 9
__________display
tasks (activities) that have a defined starting and ending time on a resource.
M2 Buffer M3
10 14 18
22
26
30
34 38
42
Idle time ignored in WIP calculations
Mgmt 361 Module 2 - Process Analysis 5
______________(WIP) includes the set of unfinished
items for products in a production process. These items are not yet completed but either just being fabricated or waiting in a queue for further processing or in a buffer storage.
Work in Process & Throughput
Optimal production management aims to minimize work in process. Work in process requires storage space, represents bound capital not available for investment and carries an inherent risk of earlier expiration of shelf life of the products. Average WIP Avg. number of jobs in the process.
______________ (TPT) aka flow time (FT)
Average TPT Avg. time for a transaction to go through a stable process.
Minimum Throughput Time (TPT) How fast a transaction goes through the process when the process is empty.
Mgmt 361 Module 2 - Process Analysis 6
Parameter relationships
When a process becomes stable, there is a relationship between process parameters _______________________.
Inventory = Throughput rate * Flow time WIP = Flow time * Flow rate = FT * FR [ Q ] = [ T ] * [ Q /T ]
Quantity [Q] Time [ T ] Cost [$] Capacity, output rate, input rate: [Q/T] Cycle time: [T/Q] WIP [Q] Throughput Time (TPT) : [ T ]
Mgmt 361
WIP = Flow Time / Cycle Time = FT / CT = TPT / CT [ Q ] = [ T ] / [T /Q ]
Module 2 - Process Analysis
Example: 2.5
M1: 5 min
Example: 2.6
M3: 4 min
M2: 5 min
5 min Stage 1
4 min.
Stage 2 Stage 1 CT for Stage 1: CT for Stage 2: Bottleneck: Process CT : Process Capacity: Min TPT: 2.5 min / unit 4 min / unit Stage 2 4 min / unit 15 units / hour 5 + 4 = 9 min
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Stage 2
Part (a) Design parameters CT for Stage 1: 5 min / unit CT for Stage 2: 4 min / unit Bottleneck: Stage 1 Process CT : 5 min / unit Process Capacity: 12 units / hour Min TPT: 5 + 4 = 9 min
Mgmt 361
Do NOT
add or average CT: CT = 1 / Capacity
Module 2 - Process Analysis
Example 2.5Two-Stage Serial Process
5 min Stage 1
4 min.
Stage 2
Bottleneck: largest CT or smallest Capacity
Process CT=Bottleneck CT Process Capacity=Bottleneck Capacity
Part (a) Design parameters
CT for Stage 1: CT for Stage 2: Bottleneck: Process CT : Process Capacity: Min TPT:
Mgmt 361 Module 2 - Process Analysis 9
Example: 2.5 Continued
M1, Task 1 5m M2, Task 2 4m
Part (b): Schedule a new job every 5 minutes starting at 0. 0 5 10 15
Design parameters CT = 5 min / unit Bottleneck: Task 1 Capacity = 12 units / hour Minimum TPT = 9 min
CT: 5 min / unit Average TPT: 9 min WIP M1: 1.00 units M2: 0.80 units Total: 1.80 units 9
1 2 3 4 5 6 7 8 9
14
19
24 Littles formula: WIP = TPT / CT 1.8 [units] = 9 [min] / 5 [min / unit]
Mgmt 361
Module 2 - Process Analysis
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Example 2.6-A Hybrid Process
M1: 5 min
M3: 4 min
M2: 5 min
Capacity for stage 1 : M1: 12 [units / hour] M2: 12 [units / hour] Total: 24 [units / hour]
(1/5 = .2 .2 + .2 = .4 1/.4 = 2.5)
Stage 2 Stage 1
Design parameters
CT for Stage 1: CT for Stage 2: Bottleneck: Process CT : (1/4) * 60 = 15 Process Capacity: Min TPT:
Module 2 - Process Analysis
1/24 h / u = 2.5 min / unit 4 min / unit Station 2 4 min / unit 1/4 u/min = 15 units / hour 5 + 4 = 9 min
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Mgmt 361
Example 2.6 - Schedule 1
M1 5m M2 5m M3 4m
Input rate = Capacity
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
Bottleneck
Cycle time: 4 min / unit Output rate: 15 units/hr Average TPT: (9 + 13) / 2 = 11 min.
Mgmt 361
M1 M2 WIP Bu M3 Total
Module 2 - Process Analysis
5/8 = 0.625 5/8 = 0.625 4/8 = 0.500 8/8 = 1.000 2.750
Littles Formula
WIP = TPT / CT 2.75 = 11 / 4
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Example 2.6 - Schedule 2
M1 5m M2 5m M3 4m
Input rate=Capacity
Send a job to M1 at 0,8,16, .. And to M2 at 4, 12, 20, Input rate = 15 units/hr.
M1 M2 M3
Cycle time:
Output rate: Average TPT:
4 min / unit
15 units/hr 9 min.
M1 M2 WIP M3 Total
5/8 = 0.625 5/8 = 0.625 (4/4) 8/8 = 1.000 2.250
Littles Formula
WIP = TPT / CT 2.25 = 9 / 4
Mgmt 361
Module 2 - Process Analysis
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Example 2.6 - Schedule 3: Input rate<Capacity
M1 5m M2 5m M3 4m
Schedule 3: Not enough work. Send a job to M1 at 0,10, 20, .. And to M2 at 4, 14, 24, Input rate = 12 units/hr.
M1 M2 M3
5 min / unit M1 (2 units/10 min) M2 Output rate: 12 units/hr WIP M3 Average TPT: 9 min. Total
Cycle time:
5/10 = 0. 5 5/10 = 0. 5 8/10 = 0.8 1.8
Littles Formula
WIP = TPT / CT 1.8 = 9 / 5
Input Rate < Capacity WIP contribution of each machine < 1 No bottleneck!
Mgmt 361 Module 2 - Process Analysis
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Example 2.6 - Comparison of Schedules
M1 5m M2 5m M3 4m
Schedule 1: CT = 4, Avg. TPT = 11, WIP = 2.75
Design parameters: CT = 4 min/unit
Capacity = 15 units/hr
Min TPT = 9 min
Schedule 2: CT = 4, Avg. TPT = 9, WIP = 2.25
Schedule 3: CT = 5, Avg. TPT = 9, WIP = 1.8
Littles Formula:
WIP=TPT/CT
Which schedule is better: Schedule 1 or 2 ?
Schedule 2 : Same output Module rate 2(CT) with lower WIP & TPT Mgmt 361 - Process Analysis
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