ProbabilityofSbeingover
Marginalcostofoverstocking
MarginalUnderageCost
ProbabilityofSbeingunder
Marginalcostofunderstocking
P{D
<
S}
P{D
<
S}*C.0
1P{D
<
S}
{1P{D
<
S}}*C.0
NonBottleneckResource
BottleneckResource
Increase
UnitLoad
Capacity
Rate
Decreases
Asanonbottleneckresource
becomesthenewbottleneck
Decreases
Staysthesame
Whenthenonbottleneckresource
staysanonbottleneck
Decrease
UnitLoad
FlowRate
Increases
Increases
Capacity
Rate
Staysthesame
Thenonbottleneckresourcesstays
anonbottleneck
Increases
Onlyifthereisonebottleneck
is
unique
Staysthesame
Ifthereismorethanone
resource
Increase
Resource
Pool
FlowRate
Decreases
Decreases
Capacity
Rate
Staysthesame
Increases
Staysthesame
FlowRate
Staysthesame
Flowratedoesnothaveanythingto
dowiththesizeoftheresourcepool
Flowrateonlydependson
unitload
Staysthesame
Shortrunmismatches
When?
Results
Utilization
InputRate
>CapacityRate
Inventory=increases
OutputRate
=CR
Utilization=100%
InputRate
<
CR,Inventory=0
Funnelanalogy
Initiallythereisnowater,butstart
pouringalittlewaterin
Inventory=0
Therewillstillbenowater
becauseallthewaterwillflowout
OutputRate
=InputRate
Utilization
<
100%
InputRate
<
CR,Inventory>0
Thereisalreadysomewater
runningthroughthefunnel
Inventory=decreases
OutputRate
=CR,untilInventory=0
**atcontinuoustimerate
Utilization=100%,
untilInventory=0
Definition
SingleStageProcess
Foraparticularactivity
MultipleStageProcess(Linear)
Therearenodecisionpointsall
homogeneous
FlowTime
Totaltimeeachunit
spendsintheentire
process
Unitloadofanactivity
Sumoftheloads=
Sumoftimeunitflow
CapacityRate
Max.numberofunits
youcanproducegiven
inaunittimeMax.,
possibleoutputrate
Capacityrateofa
processisthesame,
butanoutputrateis
variable
(1timeunit/
unitload)*
#ofresources
1unittime=FlowTime+(k1)*Cycle
Time
=k*(CycleTime)+
(FlowTimeCycleTime)
=k*(CycleTime)
k=1unittime/cycletime
Findoutthemostconstrained
resourcecomputeeachresources
capacity
Smallestcapacityrateamongall
activities=Capacityrateof
the
bottleneck
activity/resource
(1timeunit/
unitloadofbottleneckresource)*
#ofbottleneckresourceinthe
sameactivity
CycleTime
Averageadditional
timeusedtoproduce
anadditionalunit
*Onceyoufind
capacityrate,youcan
findcycletime
UnitLoad
1unittime/capacityrate
=unitload/#ofresources
1unittime/capacityrateofthe
process
=1unittime/capacityrateofthe
bottleneckresource
=unitloadofbottleneck/#of
bottleneckresources
*Onlytruewhenthereisone,unique
resource!
Lookatthecycletimeofthe
bottleneckactivity
Cycletimeofthebottleneck
resource=cycletimeofthe
process
UnitLoad=
timeyoutakeforeachresource
e.g.Ifyouhave2toasters,eachbuntakes10stotoast
Totoast...
1bun,ittakes10s
2buns,10s
3buns,20s
4buns,20s
5buns,30s
6buns,30s
e.g.
#ofJobs
1
2
3
Flowtime
Flowtime+Cycletime
Flowtime+Cycletime+Cycletime
Flowtime+(k1)*[sumofCycletime]