Process Fundamentals Summary

Mgt 203Operations Management
HBR Process Fundamentals HBR Capacity Analysis
Definitions
Process flow diagram Traces the flow of materials through a process (assembly line). Capacity Maximum rate of output from the process, and is measured in units of output per unit of time Bottleneck An operation that has the lowest effective capacity of any operation in the production system and thus limits the systems output. Cycle time (at a station) The time to produce a given number of units at that station (e.g. 1 hour for 5 cars). Manufacturing lead time The time it takes one unit (or batch) of product to go through the entire empty assembly line from start to finish. Utilization Is the ratio of the input the process actually used in creating the output to the amt of that input available for use. Capacity Utilization Is ratio of capacity actually used (i.e., the output of the process) to the total capacity available
Example 1Bread Making on Two Lines

Initial Assumptions The bakery sells only white bread. Two parallel baking lines, each equipped with a mixer, a proofer, and an oven. The two baking lines share a single packaging line. 8-hour work day
Figure 1 Process Flow Diagram and Cycle Times for Bread-Making with Two Parallel Lines Mix Raw Materials Cycle Time: 3/4 hour/ 100 loaves Mix Cycle Time: 3/4 hour/ 100 loaves Proof Cycle Time: 3/4 hour/ 100 loaves Proof Cycle Time: 3/4 hour/ 100 loaves Bake Cycle Time: 1 hour/ 100 loaves Bake Cycle Time: 1 hour/ 100 loaves Work in Process Finished Goods
Pack Cycle Time: 3/4 hour/ 100 loaves
1. Which process is the bottleneck within each baking line?
2. What is the cycle time of the 1st baking line? The 2nd?
Figure 2
Cycle Times for each Bread-Making Line
Mix Raw Materials
Proof
Bake
Cycle Time: 1 hour/100 loaves Mix Proof Bake
Work in Process
Pack Cycle Time: 3/4 hour/ 100 loaves
Finished Goods
Cycle Time: 1 hour/100 loaves
1. What is the cycle time for the entire baking line operation?
2. What is the cycle time for the entire bread-making process?
3. What is the overall daily capacity of the bread-making operation?
Options: The bakery is considering replacing some of its existing equipment with more advanced and faster equipment. The choice is between: (i) purchasing two new ovens that are each capable of baking a batch of 100 loaves in hour, or (ii) purchasing a new packaging line that is capable of packaging a batch of 100 loaves in hour. Which option would allow the greatest increase in the bakerys overall capacity? What is the new overall daily capacity?
Example 2Croissant Manufacturing

Assumptions Making dough and mixing filling are done separately. Both making dough and mixing filling must be finished before croissants can be filled, folded, baked, and packed. 8-hour work day
Figure 4 Process Flow Diagram and Cycle Times(CT) for Croissant-Making
Raw Materials: Dough
Mix CT: 5 min/50 croissants
Proof CT: 15 min/50 croissants
Roll & Cut CT: 5 min/50 croissants Work in Process: Filling
Work in Process: Dough Fill & Fold CT: 5 min/50 croissants Finished Goods Bake CT: 20 min/50 croissants Pack CT: 10 min/50 croissants
Raw Materials: Fillings
Mix Filling CT: 10 min/50 croissants
1. What is the cycle time of the dough making line?
2. What is the cycle time of the combined dough making and mixing filling operations? 3. What is the cycle time of the entire croissant making process? 4. What is the overall daily capacity? 5. What is the manufacturing lead time of the croissant making process?
Figure 5
Gantt Chart for Croissant Making
Mix Proof Roll & Cut Mix Filling Fill & Fold Bake Pack 5 10 20 30 40 TIME 50 60 70 80
Batch #1
Batch #2
What if we had started Batch #2 immediately after Batch #1 was mixed?
Capacity Analysis Summary Example

To find the cycle time: 1. Adjust for any parallel processes. 2. Choose the largest. To find the manufacturing lead time: 1. Calculate time through every path in the system (ignore parallel processes). 2. Choose the largest.
Sawing
10 min./unit
Sanding
4 min./unit
Drilling
12 min./unit
Measuring
8 min./unit
Line 1 Sawing
10 min./unit
Finishing
2 min./unit
Sanding
4 min./unit
Drilling
12 min./unit
Line 2
1. Bottleneck? 2. Cycle Time? 3. Manufacturing Lead Time?

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Mgt 203Operations Management

HBR Process Fundamentals HBR Capacity Analysis

Example 1Bread Making on Two Lines

Pack Cycle Time: 3/4 hour/ 100 loaves

1. Which process is the bottleneck within each baking line?

Cycle Times for each Bread-Making Line

Mix Raw Materials

Cycle Time: 1 hour/100 loaves Mix Proof Bake

Pack Cycle Time: 3/4 hour/ 100 loaves

Cycle Time: 1 hour/100 loaves

2. What is the cycle time for the entire bread-making process?

3. What is the overall daily capacity of the bread-making operation?

Example 2Croissant Manufacturing

Raw Materials: Dough

Mix CT: 5 min/50 croissants

Proof CT: 15 min/50 croissants

Roll & Cut CT: 5 min/50 croissants Work in Process: Filling

Raw Materials: Fillings

Mix Filling CT: 10 min/50 croissants

1. What is the cycle time of the dough making line?

Gantt Chart for Croissant Making

What if we had started Batch #2 immediately after Batch #1 was mixed?

Capacity Analysis Summary Example

1. Bottleneck? 2. Cycle Time? 3. Manufacturing Lead Time?

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