mgmt 300 exam 3 CH. 11

Utilization

the fraction of time a workstation or individual is busy over time

job shops

require frequent machine changeovers and delays, so utilization ranges from60 to 95%

Flow shops

keep equipment more fully utilized, and utilization might be between 80 - 95%

continuous flow

utilization may reach above 95%

Utilization Formula- As the proportion of available resources that are being used

Utilization 𝑼 = Resources Used / Resources Available

Utilization Formula- As the ratio of the demand rate to service capacity, based on the service rate and number of servers

Utilization 𝑼 = Demand Rate / (Service Rate × Number of Servers)

Throughput

the number of units or tasks that are completed per unit time from a process

Throughput is limited by what?

the smallest output rate of the activities in the process

Bottlenecks

activities that limit the throughput of the entire process

Flow time (cycle time)

the average time it takes to complete one cycle of a process

Little's Law

Work−In−Process (𝑾𝑰𝑷) = Throughput (𝑹) × Flow time (𝑻)

Little's Law provides a simple way of ?

evaluating average process performance

Theory of Constraints

set of principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck work activities and workstations

physical constraint

associated with the capacity of a resource

− They result in process bottlenecks

− At a bottleneck, the input exceeds the capacity, restricting the total output that is capable of being produced

− In a non-bottleneck work activity, idle capacity exists

non-physical constraint

environmental or organizational,such as low product demand or inefficient management policy or procedure

− Removing nonphysical constraints is not always possible