Fundamentals of Process

Analysis

Sanjay Choudhari
Indian Institute of Management
Indore
 Types of Materials

RM : Raw materials

WIP : Work in Process

FG : Finished good
 Process Concepts
Important
• Cycle Time
• Manufacturing Lead Time/Throughput Time
• Bottleneck

Additional
• Lot Size/Batch Size
• Setup time
 Process

I/P O/P
6 min/unit
Cycle time = 6 min
Rated capacity = 10 units / hour
= 80 units / shift (for 8 hours shift)
Actual production = 60 units / shift (one hour breakdown)
Capacity utilization = 60/80 = 0.75
Lead Time = 6 min
 Process

I/P O/P
4 min/unit
Cycle time = 4 min
Rated capacity = 15 units / hour
= 120 units / shift (for 8 hours shift)

Actual capacity = 84 units / shift (one hour breakdown)

Capacity utilization = 84/120 = 0.70

Lead Time = 4 min

 Process
I/P 1 2 O/P
4 min/unit 6 min/unit

Process Cycle time = 6 min Bottleneck

Lead Time = 10 min
Rated capacity = 10 units/hour
Manufacturing Lead Time

I/P 1 2 O/P
4 Min 6 Min
Workstation 1 Workstation 2 Manufacturing
Job No. Lead Time
Start at End at Start at End at MLT
1 0 4 4 10 10
2 4 8 10 16 12
3 8 12 16 22 14
4 12 16 22 28 16
5 16 20 28 34 18
6 20 24 34 40 20
7 24 28 40 46 22
8 28 32 46 52 24
9 32 36 52 58 26
10 36 40 58 64 28
Manufacturing Lead Time

I/P 1 2 O/P
6 Min 4 Min
Workstation 1 Workstation 2 Manufacturing
Job No. Lead Time
Start at End at Start at End at MLT
1 0 6 6 10 10
2 6 12 12 16 10
3 12 18 18 22 10
4 18 24 24 28 10
5 24 30 30 34 10
6 30 36 36 40 10
7 36 42 42 46 10
8 42 48 48 52 10
9 48 54 54 58 10
10 54 60 60 64 10
Lead Time

Manufacturing Lead Time = Cycle Time * Work-in-Process

MLT = Sum(Process time) + Sum(waiting time )

MLT = Sum(Process time) if waiting time is zero