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Examples of Demand Waiting for Supply Service Examples ER Wait Times: 58-year-old Michael Herrara of Dallas died of a heart attack after an estimated 19 hours in the local Hospital ERSome ER’s now post expected wait times online / via Apps It takes typically 45 days do get approval on a mortgage; Strong link between wait times and conversion Waiting times for drive-through at McDonald’s: 159 seconds; Long queues deter customers to join Production Examples Buying an Apple computer Buying a Dell computer= Make-to-order vs Make-to-Stock /businessmarkets/articles/drive-thrus-emissions-fast-food-mcdonalds/5/12/2010/id/28261 Pipeline inventory: you will need some minimum inventory because of the flow time 0 Seasonal inventory: driven by seasonal variation in demand and constant capacity Cycle inventory: economies of scale in production (purchasing drinks) Safety inventory: buffer against demand (Mc Donald’s hamburgers) Decoupling inventory/ buffers: buffers between several internal steps Five Reasons for Inventory Source: De Groote Process Analysis Multiple flow units 3 cases per hour 11 cases per hour 4 cases per hour EZ form Regular Foreign acc. File Contact faculty/ other persons Contact prior employers Benchmark grades Confirmation letter File m=1 3 min/app Foreign Dep. m=2 20 min/app Print invoice m=1 2 min/app Department 1 m=3 15 min/app Department 2 m=2 8 min/app Processes with Multiple Flow Units Approach 1: Adding-up Demand Streams Approach 2: A Generic Flow Unit (“Minute of Work”) Steps for Basic Process Analysis with Multiple Types of Flow Units For each resource, compute the number of minutes that the resource can produce Create a process flow diagram, indicating how the flow units go through the process Create a table indicating how much workload each flow unit is consuming at each resource Add up the workload of each resource across all flow units. Compute the implied utilization of each resource as The resource with the highest implied uti
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