Examples for Ops Mid
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Car assembly line
Process includes inputs - raw materials, steel, components, tires, etc.
Process includes resoures - assembly line workers, machines
Subprocesses - subprocess putting steel frame together before body can be put on or wheels can be put on axel
Ways company can differentiate themsevels on product attributes
Apple - strives for quality over variety or cost efficiency. Apple doesn't have the walmart $200 laptop or the customization that Dell provides but they have quality computers that are meant to last.
Flow Unit examples
Customer during a financial advising process
An order on Amazon.com
harddrives being put in computers
Flow Time, Flow Rate, Inventory
2 people working - one at cashier, one in grill who are able to complete a customer's order from start to finish in 10 minutes. (flow rate)
At present, the flow time for a customer (Flow unit) to get his order is 10 minutes as the store is not busy and the 2 resources are able to process each order as it comes in.
Lunch hour hits and the customers coming into the store increase but the flow rate remains the same.
Customers now have wait longer to be served (flow time decreases - longer). Inventory increases as the unsatisified customers build up.
Manager adds two more people in both grill and customer check out. Flow rate triples as they can now process 3 customers in 10 minutes.
Flow rate increases, flow time goes back to normal and inventory (customers) decrease.
frame, body, engine. If engine takes longest to assemble, this is the critical path and even if you make the other two shorter, you still have to wait for engine asssebly to finish the car.
Value added activities
additional analysis for our customers to cut expense (tech finance)
Gym - day care for kids
Southwest - additional leg room, friendly customer service
Flow time - Little's Law
- 1. Observe process over extended and predetermined amount of time
- 2. Select random sample of points of time
- 3. Count inventory within process boundaries within selected time ponits
- 4. Compute average inventory
This gives you average inventory part of little's law.
- 1. Observe process over predetermined/extended period of time
- 2. Select random flow units
- 3. Calculate time it takes for flow unit to get from entry to exit in process (flow time)
- 4. Compute average flow time
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