Supply Chain

How to calculate Cycle time.

Flow time and Cycle are the same. They are the average time taken to complete one cycle of a process. It is the time that takes the longest, your bottleneck.

How to Calculate Throughput

Throughput is the amount of time it takes the process to start and finish. All your task times combined equal your throughput.

How to calculate capacity

How much you can make given Minute version: 60sec X 60 minutes / Runtime =

How much you make in an hour version: 60 x hours in a day / runtime.

What is capacity is and why it matters

Total number of units that can be produced. Shows how much you can safely make.

What a bottle neck is and what it impacts

Work activity that effectively limits the throughput of an entire process.

• Identifying and breaking process bottlenecks is an important part of process design and improvement.

  • Increases the speed of a process

  • Reduces waiting and work in process inventory '

  • Uses resources more efficiently.

    

Projects

large scale, customized initiatives that consist of smaller tasks and activities that must be coordinated and completed to finish on time and within budget.

Job shop

Organized around particular types of general purpose equipment that are flexible and capable of customizing work for individual customers.

Flow Shop

Organized around a fixed sequence of activities and process steps to produce a limited variety of similar goods or services. Observed in assembly lines.

Continuous flow

Create highly standardized goods or services continuously in very high volumes

task

Specific unit of work required to create an output

Activity

groups of tasks needed to create and deliver an intermediate or final output

process

sequence of activities

Value Chain

Network of processes

Different units of work

Task, Activities, Processes, Value chain.

types of processes.

projects, job shop, flow shop, continuous flow

Types of goods and services.

Custom or made to order, option or assemble to order, standard or make to stock.

Custom or made to order

Produced and delivered as one of a kind or in small quantities. Designed to meet specific customer specifications

Option or assemble to order

Configurations of standard parts, subassemblies, or service that can be selected by customers from a limited set.

Standard or make to stock

Made according to a fixed design that leaves the customers with no option to choose from.

process map

Describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome.

delineates process boundaries.

Upside down triangle

WIP - components or partially manufactured products waiting between tasks

Diamond with question mark

A decision has to be made here.

sequential process

task a → task b → task c

dotted arrow

flow of information

set up time

amount of time required to get ready for a task

run time

time it takes to process a unit