Intro to Process Analysis II

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Presentation transcript:

Intro to Process Analysis II Kristen’s Cookies Getting more for your cookie, er, money! Gantt Charts Resource conflicts Batch size and setups Economies of Scale

The Big Picture Most of your investments—and a lot of your other costs—are due to resources (people, equipment, etc.) By avoiding resource conflicts and exploiting economies of scale you can more efficiently use your resources. Thus, you can either increase production or reduce costs. Either way, ROI goes up.

KRISTEN’S PROCESS FLOW DIAGRAM

GANTT CHART (ORDER SIZE = 1 DOZ.) 5 10 15 20 25 30 35 40 45 50 55 60 65 oven roommate Kristen pay pack cool bake mix/spoon

Cookie Questions: 1 Dozen Q1. Rush order flowtime per order? Q2. Process cycle time per order? Q3. What is the process capacity? Q4. If we start at 8 pm and end at Midnight, how many cookies can we make? Let us look at a Gantt chart

Add’l. Cookie Questions Q5. What is the labor content per order? Q6. What is the labor utilization? Q7. How many baking trays? How many food processors? Q8. Where should we add resources? Add’l. Cookie Questions

GANTT CHART (ORDER SIZE = 2 DOZ.) 5 10 15 20 25 30 35 40 45 50 55 60 65 oven roommate Kristen pay pack cool bake mix/spoon

Q9. Suppose the order size increases. Order Labor Bottle- System Cycle ROFT Size Content neck Capacity Time 1 dz. 12 mn. Oven 6 dz./hr. 10 mn. 26mn. 2 dz. What happens to the order lead time? Should we give a Price discount? 5

Suppose we have two ovens. . . 10 min/dz. Mix 6 min per order Receive Payment 1 min per order Spoon 2 min/dz Cool 5 min. Pack 2 min/dz Oven 10 min/dz

Performance with 2 Ovens Order Size 1 dz 2 dz Kristen’s Labor Content Room-Mates’ Oven mins/order Oven Cycle Time Bottle-neck System Capacity

More Cookie Quandaries What is the value of a second oven for order size = 1 dz.? What is the impact if your roommate is out of town for order size = 1 dz.? More Cookie Quandaries

LESSONS 1. Throughput time and Cycle time: Implications for customers, managers: Interrelationships: 10

LESSONS (cont.) 2. OM tension in the case: Zero Lead Time Operating System Complete Customi- zation 3. Importance of process knowledge, learning, experimentation: 11

BEWARE The Message Even simple processes are very tricky. Analyzing them is far from simple. A spreadsheet is not enough. Doing them in your head is not enough. There is no substitute for using your OM tools.