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OperationsManagementThedesignandmanagementofsystemstomakeproducts,provideservicesanddeliverthemtotheenduser.Class2:Utilization,InventoryandLittle’sLawLearningObjectivesRevisitofThroughputRateCapacityanalysisconsiderstheidealcase……BasicProcessCharacteristicsTheFunnelAnalogyUtilizationChallenge:MismatchbetweendemandandsupplyAnexample:SecurityscreeningatYVRShort-runvs.Long-runAveragesImpliedUtilizationSecurityScreeningExampleRevisitedInventoryBuild-UpDiagramInventoryBuild-UpDiagramCalculating“AverageInventory”Consideranotherexample……andanother……andanotherEstimatingProcessMeasuresDefinitionsInventoryandFlowDynamicsInventoryBuild-UpDiagramAnotherInventoryBuild-UpExampleUnderthecontinuousassumption:Theaverageinventory?“Areaunderthecurve”Little’sLawLittle’sLawLittle’sLaw:Example1Little’sLaw:Example1Little’sLaw:Example1Little’sLaw:Example2Little’sLaw:Example2Little’sLaw:Example2InsightsfromLittle’sLawInsightsfromLittle’sLawLittle’sLaw:Example3InventoryTurnoverDaysofInventory&InventoryTurnoverTheImportanceofInventoryTurnoverandIncreasingInventoryTurnsClass2:ProductMix,UnitLoadandProduct-ProcessMatrixLearningObjectivesProcessAnalysis:MultipleFlowUnitsProcessAnalysis:MultipleFlowUnitsProcessAnalysis:MultipleFlowUnitsTheoreticalversusEffectiveCapacityWhatinformationdounitloadsgiveus?Whatinformationdounitloadsgiveus?Whatinformationdounitloadsgiveus?Howdotheylooklike?Tasksaredividedintorelativelyquick,simpletasksTaskscloselycoordinatedandinterdependentCapacityeasytomeasureLessskillfulworkersMoreprevalenceofautomationMake-to-stockLargefacilityResourcespecializationhighutilizationPrimarilycostSome(limited)opportunitiestodifferentiatethemselveson“service”Howtocategorizethetypesofprocesses?A(simplified)spectrumofproductattributeMoreProcessTypesWhatprocesstypes?Whatprocesstypes?Product-ProcessMatrixProduct-ProcessMatrixOvercomingFlexibility-EfficiencyTradeOffTheVolvoExperimentProductLifeCycleSummary
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