1. Raw potatoes are first washed and peeled. Then the potatoes are sliced and fried in a large kettle. After frying, the cooked chips are inspected and any burnt ones are removed. The chips are then salted and stored in large cartons before they are packaged. The chips are packaged in either one-ounce or eight-once packages. Draw a process flow diagram. Process Flow Diagram: Ex4: Making Potato Chips Wash and peel Slice and fry Inspect Salt cartons Package 1 oz or 8 oz? 1 oz 8 oz Burnt or not? yes Remove Raw potatoes Slide #8

2. Ex2: Expanding the Bottleneck What is the bottleneck? What is the system capacity? If you were to invest in adding capacity to the bottleneck only, what would you do? How do you increase system capacity to 250 pizzas/hr? Measure mozzarella = 167 pizzas / hr Increase system capacity to 175 pizzas / hr (2 nd lowest capacity). That means, increasing mozzarella station to 175(.24) = 42 lbs/hr After that, both become bottleneck and both must be expanded in order to have higher process capacity Measure mozzarella: increase to 250(.24) = 60 lbs/hr Apply sauce: increase to 250 pizzas/hr Apply plastic overwrap: increase to 250*2.7 = 675 sq-ft/hr Measure romano: increase to 250(.12) = 30 lbs/hr Apply cheese: increase to 250 pizzas/hr. Slide #19

3. patients Greet & Question by nurse 30% Treatment by senior doctors 70% Treatment by junior doctors pay Ex3: Flowchart Slide #21 Simple? No yes To represent possible waiting, a triangle can be added before each of the following activities: “Treatment by sr. dr.”, “Treatment by jr. dr.”, and “pay”

4. Ex3: Capacity calculations Capacity unit to use: # of incoming patients per hour Capacity of “nurse” stage = 2*12 = 24 inc. patients / hr Capacity of “senior doc” stage = 3*2/0.3 = 20 inc. patients / hr Capacity of “junior doc” stage = 6*4/0.7 = 34.3 inc. patients / hr Capacity of “cashier” stage = 1*30 = 30 inc. patients / hr The bottleneck stage is “senior doctors” stage. The throughput rate of the system is 20 inc. patients per hour. Slide #22

5. Ex4: Restaurant Example Capacity Calculations Comparable unit = # of incoming customers (inc. cust.) per hour Parking = 100 cars * 2.2 (customers/car) / {1.5 hrs} = 146.7 inc. cust./hr. Bar Area = 80 seats / {1.5 hr * 0.2 (bar customers/inc. customer)} = 266.7 inc. cust. / hr. Dining Area = 170 seats / {1.5 hr * 0.8 (dining cust/inc. cust.)} = 141.7 inc. cust. / hr. Cooking Area = 150 meals / {1hr*( 0.2(0.4) + 0.8(1.0)) meals/inc. customer} = 170.5 inc. cust. / hr. Dining area is the bottleneck Slide #24

6. Ex4: Expanding Bottleneck What is the bottleneck? What is the system capacity? If you were to invest in adding capacity to the bottleneck only, what would you do? Dining Area; system capacity = 141.7 inc. cust. / hr. Increase capacity to 146.7 inc. cust./hr (2 nd lowest capacity). This means, increasing # of seats to (146.7/141.7)*170 = 176, i.e. adding 6 seats (e.g. add 3 tables of two). [Alternatively, assume the number of seats should be x, then (x/1.5)/0.8 = 146.7. This implies x = 176 seats] How do you increase system capacity to 180 inc. cust. /hr? Dining: (180/141.7)*170 = 216  add 46 seats Parking: (180/146.7)*100 = 122.7  add 23 parking spaces Cooking area: (180/170.5)*150 = 158.4 meals / hr  add chefs or/and space Slide #25