Operations Notes – Process


Notes from core MBA Operations class, these focused on process.
Subject: Operations

Productivity = (Value of Outputs)/(Value of Inputs)

Cycle Time (CT) – time between completion of successive units (workstation, process)
Bottleneck (BN) – factor that limits production (longer cycle time, scarcest resource)
Capacity (C) – how much output can be produced in specified period of time
Flow Time (FT) – time it takes to get completely through a process, beginning to end
Utilization (U) – % of time spent actually working on product or performing service

  • (what you get)/(what you pay for) = (work content)/(total available time)
  • inversely proportional to variability (Demand)

Gantt Chart – a horizontal bar chart showing resource utilization over time

Process Design
Line Balancing – 1st draw the Process Flow Diagram (PFD), then make the following chart:

Desire X Units ÷ Total Time ⇒ Cp [CTp = 1/Cp]

Minimum # of Stations = Σ task times ÷ CTp

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