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Lecture Production operations management: Lecture 29 - Osman Bin Saif

In this chapter, the following content will be discussed: Design and effective capacity, capacity and strategy, capacity considerations, managing demand, demand and capacity management in the service sector, bottleneck analysis and theory of constraints. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 29 1 Summary of last Session Characteristics of a Waiting-Line System Arrival Characteristics Waiting-Line Characteristics Service Characteristics Measuring a Queue’s Performance Queuing Costs 2 2 Summary of last Session (Contd.) The Variety of Queuing Models Model A(M/M/1): Single-Channel Queuing Model with Poisson Arrivals and Exponential Service Times Model B(M/M/S): Multiple-Channel Queuing Model Model C(M/D/1): Constant-Service-Time Model Model D: Limited-Population Model 3 3 Summary of last Session (Contd.) Other Queuing Approaches 4 4 Agenda for this Session Capacity Design and Effective Capacity Capacity and Strategy Capacity Considerations Managing Demand Demand and Capacity Management in the Service Sector 5 5 Agenda for this Session (Contd.) Bottleneck Analysis and Theory of Constraints Process Times for Stations, Systems, and Cycles Theory of Constraints Bottleneck Management Break-Even Analysis . | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 29 1 Summary of last Session Characteristics of a Waiting-Line System Arrival Characteristics Waiting-Line Characteristics Service Characteristics Measuring a Queue’s Performance Queuing Costs 2 2 Summary of last Session (Contd.) The Variety of Queuing Models Model A(M/M/1): Single-Channel Queuing Model with Poisson Arrivals and Exponential Service Times Model B(M/M/S): Multiple-Channel Queuing Model Model C(M/D/1): Constant-Service-Time Model Model D: Limited-Population Model 3 3 Summary of last Session (Contd.) Other Queuing Approaches 4 4 Agenda for this Session Capacity Design and Effective Capacity Capacity and Strategy Capacity Considerations Managing Demand Demand and Capacity Management in the Service Sector 5 5 Agenda for this Session (Contd.) Bottleneck Analysis and Theory of Constraints Process Times for Stations, Systems, and Cycles Theory of Constraints Bottleneck Management Break-Even Analysis Single-Product Case 6 6 Agenda for this Session (Contd.) Applying Expected Monetary Value to Capacity Decisions 7 7 ADDITIONAL CHAPTER: CAPACITY AND CONSTRAINT MANAGEMENT 8 Capacity The throughput, or the number of units a facility can hold, receive, store, or produce in a period of time Determines fixed costs Determines if demand will be satisfied If facilities remain idle 9 9 This slide provides some reasons that capacity is an issue. The following slides guide a discussion of capacity. Planning Over a Time Horizon Figure S7.1 Modify capacity Use capacity Intermediate-range planning Subcontract Add personnel Add equipment Build or use inventory Add shifts Short-range planning Schedule jobs Schedule personnel Allocate machinery * Long-range planning Add facilities Add long lead time equipment * * Difficult to adjust capacity as limited options exist Options for Adjusting Capacity 10 10 Design and Effective Capacity Design capacity is the maximum theoretical output of a system Normally .