Class 1 Northwestern University1级西北大学.ppt

S. Chopra/Operations/Process Analysis Apps S. Chopra/Operations/Process Analysis Apps Changing Sources of Competitive Advantage Targeting Improvement: Operational Measures - Time T, Inventory I, Throughput rate R Link through Little’s Law Link to Financial Measures Targeting improvement: CRU Computer Rentals Capacity and Flow Time Analysis Pizza Pazza Levers for Improvement Multi-product Capacity Management and Investment Joint Marketing Production Decisions Optimal Capacity Investment National Cranberry Cooperative How can operations help a company compete?The changing sources of competitive advantage Low Cost Scale Economies ( 1960s) You can have any color you want as long as it is black Focused Factories (mid 1960s) Flexible Factories and Product variety (1970s) A car for every taste and purse. Quality (1980s) Quality is free. Time (late 1980s-1990s) We love your product but where is it? Don’t sell what you produce. produce what sells. What is Improvement? Operational Performance Measures Flow time Throughput Inventory Process Cost Quality Relating operational measures (flow time T, throughput R inventory I) with Little’s Law Flow time = Inventory / Throughput T = I / R Turnover = Throughput / Inventory = 1/ T Process Flow Examples Customer Flow: Taco Bell processes on average 1,500 customers per day (15 hours). On average there are 75 customers in the restaurant (waiting to place the order, waiting for the order to arrive, eating etc.). How long does an average customer spend at Taco Bell and what is the average customer turnover? Job Flow: The Travelers Insurance Company processes 10,000 claims per year. The average processing time is 3 weeks. Assuming 50 weeks in a year, what is the average number of claims “in process”. Material Flow: Wendy’s processes an average of 5,000 lb. of hamburgers per week. The typical inventory of raw meat is 2,500 lb. What is the average hamburger’s cycle time and Wendy’s turnover? Proce