Process

Capacity
This lecture is recorded- Click on the Slide

https://www.youtube.com/watch?v=JEee_woDAAY
Capacity- Basics Ardavan Asef-Vaziri June-2013 2
A Process; Three Sequential Activities

Resource You Oven Friend

Activity Operation A Operation B Operation C
Time 15 minutes 20 minutes 5 minutes
3 sequential activities;
A (preparation), B (bake), and C (package and label).
3 resources; you, oven, and your friend.
To produce each batch of muffin, you prepare the
material, then put the batch in the oven (there is only a
single oven and can bake one batch at a time), then your
friend take the batch out and does packaging and
labeling. The processing time at each operation is given
above. This system works for four hours. 4×60 = 240

(Estimating processing times is the subject of motion and

time
Capacity-studies.)
Basics Ardavan Asef-Vaziri June-2013 3
Resources, and Resource Units
Capital Resources – Fixed Assets such as land,
buildings, facilities, machinery, oven, etc.
Human Resources – People such as engineers,
operators, assemblers, chefs, customer-service
representatives, you, your friend, etc.

Each activity may require one or more resources and each

resource may be allocated to one or more activities. A
resource, a baker, may be used by several activities such
as mixing, kneading and forming dough. An activity like
loading an oven, may require multiple resources such as a
baker and an oven.

Resource Unit – An individual resource (chef, mixer,

oven), or a combination of different individual resources
(an operating
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Capacity of a Process with Sequential
Activities
You Oven Friend
Operation A Operation B Operation C
15 minutes 20 5

Capacity (per hour)

= 60/15 = 4 = 60/20 = 3 = 60/5 = 12
Process Capacity = Min {4,3,12} = Capacity of the
bottleneck = 3
Each hour we produce 3 units.
Starting from the second unit, every 60 mins a total of 3
units may enter, pass, and leave the process.
60/3 = 20 interarrival time and interdeparture time (cycle
Time).
Capacity- Basics Ardavan Asef-Vaziri June-2013 5
Per Minute and Per Hour Reach the Same
Results
You Oven Friend
Operation A Operation B Operation C
15 minutes 20 5
We computed capacity /hr, we could have computed the
capacity per min
Capacity (per min)
= 1/15 = 1/20 = 1/5
Process Capacity = Min{1/15. 1/20. 1/5}
Capacity of the bottleneck = 1/20 per min
Each min we produce 1/20 units. In 20 mins we can
send out or take in one product.
20 mins interarrival time and interdeparture time (Cycle
Time).
Capacity- Basics Ardavan Asef-Vaziri June-2013 6
Cycle Time
You Oven Friend
Operation A Operation B Operation C
15 minutes 20 5
a) How long does it take to produce a batch of muffin?
In a formal term, what is the flow time in this
process?
Flow Time =! Theoretical Flow Time = 15 + 20 + 5 = 40
b) How often a batch of muffin enter (exit) this
process? In a formal term, what is the Cycle time of
this system?

You prepare a batch and pass it to the oven at min 15.

You then start the next batch and complete it at min 30.
Oven is still baking the first batch. It will be done at min
15+20 = 35.
You need
Capacity- Basics to wait for 5 minutes
Ardavanto put the
Asef-Vaziri 2nd batch in
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Cycle Time
You Oven Friend
Operation A Operation B Operation C
15 minutes 20 5
Oven is the bottleneck. Batches exit the oven every 20
mins.
You also can put batches into the oven every 20 mins.
At min 35 your friend can take the first batch out of the
oven, and after 5 mins at min 40 he is done. First batch
exits at min 40.
At min 35 you put the second batch in the oven.
Your friend takes it out of oven at min 35+20 = 55 and
send it out of the process at min 60.
That is 60-40=20 mins after the first batch.
Therefore the time between exit of two consecutive
batches is?
Capacity- Basics Ardavan Asef-Vaziri June-2013 8
Flow Time
You Oven Friend
Operation A Operation B Operation C
15 minutes 20 5

Operation A

Operation B

Operation C
CT CT CT

0 40 60 80 100
Flow Time

Capacity- Basics Ardavan Asef-Vaziri June-2013 9

Cycle Time; Starting from 0 vs. Continual
a) How many batches can you produce per day?
Case 1, Starting form 0. We have 4×60 minutes. It
takes you 40 minutes to produce the first batch. In the
remaining 240 - 40 = 200 mins, since cycle time is 20
mins, therefore, we produce 1 batch per 20 mins, that is
10 batches in 200 mins. We produce 1+10 = 11 per 4
hours.
We could have also said that in the first 40 minutes we
produce 1 batch and in the next 200 minutes we produce
1/20 batch per min. That is 1+200(1/20) = 11 per 4
hours.
Case 2, Continual. Suppose we are not producing
muffins but something else such that at the start of each
day there are WIP of the previous day in the system. For
example suppose it is a painting oven for a small part and
you can
Capacity- make the part ready
Basics and
Ardavan put it June-2013
Asef-Vaziri into the oven at 10
Utilization
What is the capacity (or maximum Throughput)?
The flow time is 40 mins. The cycle time is 20 mins.
Therefore, capacity is 1/20 per min. In 4 hours it is
240(1/20) = 12
By now we should know the followings
Flow time.
Cycle time.
Capacity.
What is Utilization of the oven?
Oven is always working. Every 20 minute 1 batch comes
and 1 batch leaves. Utilization of the oven is 1 or 100%.
In each 20 minutes you only work 15 mins. Your utilization
is 15/20 = 0.75 or 75%.
In each 20 minutes your friend only work 5 mins. Your
friend’s utilization is 5/20 = 0.25 or 25%.
Capacity- Basics Ardavan Asef-Vaziri June-2013 11
Utilization
We can compute Utilization in an alternative way.
You Oven Friend
Operation A Operation B Operation C
Activity Time
15 minutes 20 5
Capacity = 60/15 = 4 = 60/20 = 3 = 60/5 = 12
Process Capacity = min{4,3,12} = 3
Utilization = 3/4 = 0.75 = 3/3 = 1 = 3/12 = 0.25

Capacity- Basics Ardavan Asef-Vaziri June-2013 12

Parallel Activities, Resource Pool
Resource Pool – A Oven
collection of Operation B
interchangeable resource
units that can perform an
Operation B
identical set
Processing of activities.
time = Tp = 20 minutes
20
Resource Pool contains 2 Resource units. c =2
Capacity of a resource unit = 1/20 per min
Capacity of a resource pool = 2(1/20) = 1/10 per min
After how many minutes a product exist this system
Every one minute 0.1 product. After how many minutes 1
product?
1/0.1 = 10 Cycle time is 10 minutes.
Capacity- Basics Ardavan Asef-Vaziri June-2013 13
Network of Activities
Now suppose there are two ovens. Compute flow time.
Capacity or maximum accessible throughput, cycle time,
and utilization of each resource unit and resource pool.
Oven
You Operation B Friend
Operation A Operation C
15 minutes Operation B 5 minutes
20 minutes
= 1/15 = 1/20 = 1/5
Capacity of
= (1/15)(1) =1/15
= (1/20)(2) = 1/10= (1/5)(1)=1/5
Resource
Pool
batch/min
Process Capacity = Capacity of the bottleneck = 1/15
per min
You are
Capacity- the bottleneck.
Basics Ardavan Asef-Vaziri June-2013 14
Network of Activities
Oven
You Operation B Friend
Operation A Operation C
15 minutes Operation B
5
20
Capacity of
Resource (1/15)(1) =1/15 (1/20)(2) = 1/10 (1/5)(1)=1/5
Pool
batch/min
Process Capacity = 1/15 per min

Each min the system produces 1/15 units. In 15 mins we

can send out or take in one product.
Interarrival time and interdeparture time (cycle Time) =
15 min.
U = (1/15)/(1/15)=1 = (1/15)/(1/10) = 0.67
= (1/15)(1/5)=0.33

Capacity- Basics Ardavan Asef-Vaziri June-2013 15

Per Minute and Per Hour Reach the Same
Results
Oven
You Operation B Friend
Operation A Operation C
Operation B
15 minutes 5
20
Capacity of (60/15)(1) =4 (60/20)(2) = 6 (60/5)(1)=12
Resource
Pool batch/hr
Process Capacity = 4 per hour
Each hr the system produces 4 units. In 15 mins we can
send out or take in one product.
Interarrival time and interdeparture time (cycle Time) =
15 min.
U= 4/4=1 4/6 = 0.67 4/12=0.33

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Two Ovens Plus Cross Functional Workers
Oven
Human Human
Operation B
Operation A Operation C
15 mins Operation B 5
20
Resource Human Oven
Time 5+15 20
Capacity 2*60/20 =6 2*60/20 =6

Cross functional workers and resource pooling are great

operational strategies.
However, in this specific example we need to be careful.
We did not increase throughput. Furthermore, U of all
resources is now 100%. Very risky, a small variation can
reduce
Capacity- the capacity.
Basics Ardavan Asef-Vaziri June-2013 17
Resources, Resource Pools and Resource
Pooling
Resource Pooling – Combining separate resource pools
into a single more flexible pool that is able to perform
several activities. Transforming specialized resources
into general purpose resources. Cross-trained workers.
General purpose machines.

It is a powerful operational concept that can significantly

affect not only process flow rate and capacity but
also flow time.

Capacity- Basics Ardavan Asef-Vaziri June-2013 18

Christine, Roommate, Mixer, and Oven
Christine, Roommate, Mixer, and One Oven
Resource Christine Roommate Mixer Oven
Time 8 3 6 10
Capacity/hr 60/8 =7.5 60/3=20 60/6=10 60/10
=6
Christine, Roommate, Mixer, and Two Ovens
Resource Christine Roommate Mixer Oven
Time 8 3 6 10
Capacity 60/8 = 7.5 60/3=20 60/6=10
120/10 =12
Two Oven and Cross Functional Workers
Resource Human Mixer Oven
Time 8+3 6 10
Capacity 120/11 =10.9 60/6 = 10
120/10 =12
Capacity- Basics Ardavan Asef-Vaziri June-2013 19
Christine, Roommate, Mixer, and Oven
Christine, Roommate, Mixer, and One Oven
Resource Christine Roommate Mixer Oven
Time 8 3 6 10
Capacity 1/8 1/3 1/6
1/10
Christine, Roommate, Mixer, and Two Ovens
Resource Christine Roommate Mixer Oven
Time 8 3 6 10
Capacity 1/8 1/3 1/6 2(1/10)
=1/5
Cross Functional Workers and Two Ovens
Resource Human Mixer Oven
Time 8+3 6 10
Capacity 2(1/11) =2/11 1/6 2(1/10)
= 1/5
Capacity- Basics Ardavan Asef-Vaziri June-2013 20
Problem 7
The following graph shows a production process for two
products AA and BC. Station D and E are flexible and can
handle either product. No matter the type of the product,
station D can finish 100 units per day and station E can
finish 90 units per day. Station A works only for Product A
and have a capacity of 60 units per day. Station B and C
are only for Product BC and have capacity of 75 and 45
units per day, respectively. The demands for each product
is 50 units per day.
Which station(s) is the
bottleneck?
AA A
A) Stations A and C (50 60 D E
B) Station B and C ) 10 90
0
C) Stations C and D
B C
D) Stations D and E BC 75 45
E) Station C and E (50
)
Capacity- Basics Ardavan Asef-Vaziri June-2013 21
Problem 7
If the system can work at the process capacity, which of
the following is NOT true?
A) The utilization of machine A is at least 75%
B) The utilization of machine B at least about 53%
C) The utilization of machine B is at most 60%
D) The utilization of machine D is 90%
E) All of the above.
E  We can produce at most 90 AA and BC.
C  We can produce at most 45 BC
We may produce all combinations from 50AA and 40
A)
BCWe produce
to 45AA andat45
least
BC 45 AA: 45/60 AA = A
60
75% D E
10 90
B) We produce at least 40 BC: 40/75 = 0
53.33% B C
BC
C) 45/75 = 60% 75 45

D) 90/100
Capacity- Basics = 90% Ardavan Asef-Vaziri June-2013 22