C11 Supplement Material

Insert textbook image here
Operations and
Supply Chain
Management
Chapter 11: Process Analysis and
Resource Utilization
©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
Resource Utilization
Utilization:
− The fraction of time a workstation or individual is busy over the long run.
− The extent of the utilization of the resources’ potential might be expressed in
terms of the proportion of available time used or occupied, space utilization,
levels of activity, etc.
− It is difficult to achieve 100%.
Two Ways to Computing Resource Utilization
Throughput
Throughput:
− is the number of units or tasks that are completed per unit time from a
process.
− It might be measured as parts per day, transactions per minute, or
customers per hour, depending on the context.
− Throughput is impacted by bottlenecks.
Bottleneck
Bottleneck:
− is the work activity that effectively limits the throughput of the entire process.
− Bottlenecks often result in waiting lines or queues thus, identifying and
breaking process bottlenecks is an important part of process design and
improvement.
Breaking bottlenecks will:
• Reduce waiting
• Reduce work-in-process inventory
• Enhance customer service
• Allow efficient use of resources
− Analysis of bottlenecks can provide useful insights for evaluating and
choosing alternative process designs.
Little’s Law
At any moment, people, orders, jobs, documents, money, and other entities
that flow through processes are in various stages of completion and may be
waiting in queues.
• Flow time (cycle time):
− is the average time it takes to complete one cycle of a process.
− the flow time will depend not only on the actual time to perform the tasks
required but also on how many other entities are in the work-in-process
stage.
Little’s Law
Little’s Law:
− is a simple equation that explains the relationship among flow time (T),
throughput (R), and work-in-process (WIP)
Managing Waiting Lines, Part 1
A queue is another term for waiting line.

− Understanding queues allows us to analyze current and alternative process
designs to understand their behavior, predict process performance, and
better allocate resources.
− Queueing models help managers understand key performance measures
such as waiting times, queue lengths, and machine or server idle times so
that they can manage resources more effectively and provide better
customer satisfaction.
Managing Waiting Lines, Part 2
• Queueing system:
− consists of customers that arrive for service, one or more servers that
provide the service, and a queue (waiting line) of entities that wait for service
if the server is busy.
Three common queueing configurations:
1. One or more parallel servers fed by a single queue.
2. Several parallel servers fed by their own queues.
3. A combination of several queues in series.
Parallel Servers
Queues in Series in a Typical Voting Facility
Queueing Theory
Queueing Theory:
− is the analytical study of waiting lines.
− Typical performance measures that are computed using queueing theory
include:
1. The probability that the system is empty (i.e., the probability of 0 units in
both the queue and in service).
2. The average number of units waiting for service in the queue.
3. The average number of units in the system (queue and in service).
Queueing Theory
4. The average time a unit spends waiting for service (time in queue).
5. The average time a unit spends in the system (waiting time plus service time).
6. The probability that an arriving unit has to wait for service.
7. The probability of n units in the system (queue and in service).
Using Queueing Theory for Process Analysis
• Analyzing queueing systems can be performed with analytical models or

simulation models.
• Analytical models are simpler to use and can provide good estimates of the
average long-run behavior of queueing systems.
Single Server Queueing Model
Two basic queueing models with its own key assumptions:
1. Single server queueing model
2. Multiple server queueing model
Single server queueing model - the simplest queueing model with the following
characteristics and assumptions:
§ The waiting line has a single server.
§ The pattern of arrivals follows a Poisson probability distribution.
§ The service times follow an exponential probability distribution.
§ The queue discipline is “First Come, First Served” (FCFS).
§ Arriving customers must join the queue and cannot leave while waiting.
Multiple Server Queueing Model
In many practical situations, it is possible to have multiple servers in which customers wait in a
single serpentine line and move to the next available server. A Multiple server queueing model
can properly evaluate such a queueing system structure.
The following are assumptions for a multiple server queueing model:

§ The waiting line has two or more identical servers that serve customers from a single queue.
§ The arrivals follow a Poisson probability distribution with a mean arrival rate of l.
§ The service times have an exponential distribution.
§ The mean service rate, m, is the same for each server.
§ The arrivals wait in a single line and then move to the first open server for service.
§ The queue discipline is first-come, first served (FCFS).
§ Arriving customers must join the queue and cannot leave while waiting.
Fixed-Time Simulation Model
• Fixed-time simulation model:

− simulation model that increments time in fixed intervals.
Theory of Constraints, Part 1
• Theory of Constraints (TOC):

− is a set of principles that focuses on increasing total process throughput by
maximizing the utilization of all bottleneck work activities and workstations.
− The philosophy and principles of the TOC are valuable in understanding
demand and capacity management.
• In the TOC, a constraint is anything in an organization that limits it from moving

toward or achieving its goal.
− Constraints determine the throughput of a facility because they limit
production output to their own capacity.
− Two basic type of constraints:
§ Physical
§ Nonphysical
• Nonbottleneck work activity:

− is one in which idle capacity exists.
• Nonphysical constraint:
− is environmental or organizational, such as low product demand or an
inefficient management policy or procedure.
§ Inflexible work rules, inadequate labor skills, and poor management are
all forms of constraints.
§ Removing nonphysical constraints is not always possible.
Basic Principles of the Theory of Constraints
Summary
• Utilization is the fraction of time a workstation or individual is busy over the long
run. It is difficult to achieve 100% utilization. Most job shops range from 60-95%
with most continuous flow processes above 95%.
• Throughput is the number of units or tasks that are completed per unit time from
a process.
• Understanding queueing models will help managers improve processes that
eventually save time, money and enhance customer service.
• The philosophy and principles of the Theory of Constraints (TOC) are valuable
in understanding demand and capacity management.

C11 Supplement Material

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

C11 Supplement Material

Uploaded by

Copyright:

Available Formats

Insert textbook image here

A queue is another term for waiting line.

• Analyzing queueing systems can be performed with analytical models or

The following are assumptions for a multiple server queueing model:

• Fixed-time simulation model:

• Theory of Constraints (TOC):

• In the TOC, a constraint is anything in an organization that limits it from moving

• Nonbottleneck work activity:

You might also like