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Capacity

Capacity. Case: Scharfen Berger Chocolate Maker Throughput (Average Flow Rate): Average # of flow units that flow through the process per unit of time Capacity : Maximum Throughput Effective Capacity: Inverse of the unit load Unit Load: Average time required to process a flow unit

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Capacity

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  1. Capacity • Case: Scharfen Berger Chocolate Maker • Throughput (Average Flow Rate): • Average # of flow units that flow through the process per unit of time • Capacity : Maximum Throughput • Effective Capacity: Inverse of the unit load • Unit Load: Average time required to process a flow unit • Theoretical Capacity: Highly idealized, seldom attainable • Maximum flow rate without any waste. • Capacity affects process performance • Too little  long waiting times/lost sales • Too much  high cost/inefficiency

  2. Capacity Decisions • Long-Term (Multi-year, strategic) • Facility (manufacturing, distribution, warehousing) planning • Number, scale, location • Equipment acquisition • ? • Intermediate (Quarterly or monthly) • Production and workforce planning • Resource allocation • Short-Term (Weekly or daily, tactical) • Due date assignment • Material requirements planning • Job or workforce scheduling

  3. Mortgage Application Verify/Check Employment etc Marcus 20min Assemble, Present to client Karolien 15min Application review, Data entry Shannon 5min Spot the bottleneck! Credit rating Kiki 15min Initial policy options/rates Maxi 15min

  4. Capacity Analysis Factors affecting system capacity • Multiple products with same process requirement (batch process) • Product mix • Setup times • Lot size

  5. Process Layout of a Medical Center Patient Routing Mix Type A 1,2,3 40% B 1,4,6 30% C 1,2,5 20% D 1,2,6 10% Can Handle (Patients/week 1 1000 2 420 3 250 3 300 5 300 6 600 What is the capacity of this system Waiting Area (1) Orthopedic care (3) X-Ray (2) Intensive care (6) Neurology (5) Cardiology (4) Neurology (5)

  6. Multi-Product Process Chart

  7. Multi-Product Process Chart

  8. Matching Capacity and Demand • Demand management • Pricing, promotion, backordering (appointment) • Production management • Inventory pileup, subcontracting, flexible facility design (toll-way) • Workforce management • Overtime, hiring/layoff (training?), vacation • Cross-training, shift scheduling • Planning capacity utilization • Cost vs. time performance • Available options • Potential cost and benefits tradeoff http://www.youtube.com/watch?v=3zx4dfqmB3A&feature=related

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