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Process Analysis - Class Notes - Mod 2 - Part 2

The document discusses process analysis and Little's Law. It provides examples of single and multiple stage processes, and how to calculate cycle times, throughput rates, work in process, and throughput times using Little's Law. Scheduling examples are given for hybrid processes to demonstrate how these metrics change under different input rates.

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tellmewhour
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81 views15 pages

Process Analysis - Class Notes - Mod 2 - Part 2

The document discusses process analysis and Little's Law. It provides examples of single and multiple stage processes, and how to calculate cycle times, throughput rates, work in process, and throughput times using Little's Law. Scheduling examples are given for hybrid processes to demonstrate how these metrics change under different input rates.

Uploaded by

tellmewhour
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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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
8

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

10

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
11

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


12

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

13

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

14

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

15

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