BY: D E N N IS ART H U R S. L E ON OR
INTRODUCTION
Examples:
1. Honda transforms steel, rubber, and plastic into
cars
2. McDonalds transforms meat, potatoes, and sauces
into packaged food
3. Dell transforms customer orders into PCs
What is a process?
Examples:
1. Honda transforms steel, rubber, and plastic into
cars
2. McDonalds transforms meat, potatoes, and sauces
into packaged food
3. Dell transforms customer orders into PCs
Why do we need to analyze the
process?
What is its capacity? How many units per unit time go through each task?
What is the bottleneck? Which production step limits the process capacity?
What is the throughput time? How long does it take to get through the
system?
How do we measure capacity?
Capacity of a task is the physical limitation in
terms of how much can be processed at this
task
Cycle Time: Average time for completion of a unit at a
production step or process. Does not include
waiting. Measured as time/unit
A B
Bottleneck is the
process stage with
the
smallest throughput
rate
Which task is(longest
the cycle time)
bottleneck?
WIP
Throughput
time = Throughput rate
(Littles Law)