Process Analysis II Operations -- Prof. Juran Outline • Types of Processes • Kristin • Benihana • Littlefield Operations -- Prof. Juran Low Volume, One of a Kind I. Job Shop Few High Major Volume, Multiple High Products, Products, Higher StandardLow Volume ization Volume Flexibility (High) Unit Cost (High) Commercial Printer French Restaurant II. Batch III. Assembly Line IV. Continuous Flow Operations -- Prof. Juran These are the major stages of product and process life cycles Heavy Equipment Automobile Assembly Burger King Sugar Refinery Flexibility (Low) Unit Cost (Low) Process Flow Structures • Continuous Flow (ex. Petroleum manufacturer) • Assembly Line (ex. Automobile manufacturer) • Batch shop (ex. Copy center making 10,000 copies of an ad piece for a business) • Job shop (ex. Copy center making a single copy of a student term paper) • Extreme Case: Project (ex. Legal Counsel for a Criminal Trial) Operations -- Prof. Juran Bakery Video • Continuous Flow (loaves of bread) • Batch Process (pastries) • Job Shop (custom decorated cakes) Operations -- Prof. Juran Kristin’s Cookies Order Entry Wash Bowl, Mix Ingredients Resource: Self Capacity: 3 Cycle Time: 6 minutes Fill Tray Resource: Roommate Capacity: 1 Cycle Time: 2 minutes Start Oven Resource: Roommate, Oven Capacity: 1 Cycle Time: 1 minute Bake Resource: Oven Capacity: 1 Cycle Time: 9 minutes Cool Resource: none Capacity: 1 Cycle Time: 5 minutes Remove Resource: Roommate Capacity: 1 Cycle Time: 0 minutes Pack, Collect Money Resource: Roommate Capacity: 1 Cycle Time: 3 minutes Operations -- Prof. Juran 1. How long will it take for you to fill a rush order? Assuming this order is for one dozen cookies, we will need to do the following: Activity Resource Cycle Time Order Entry E-mail 0 minutes Wash Bowl, Mix Self 6 minutes Fill Tray Self 2 minutes Prepare Oven Roommate 1 minute Bake Oven 9 minutes Remove Roommate 0 minutes Cool None 5 minutes Pack, Collect Money Roommate 3 minutes Therefore, the minimum time to fill an order is 26 minutes. Operations -- Prof. Juran Start Time 00:00 00:00 06:00 08:00 09:00 18:00 18:00 23:00 Finish Time 00:00 06:00 08:00 09:00 18:00 18:00 23:00 26:00 Operations -- Prof. Juran 2. How many orders can you fill in a night, assuming you are open four hours each night? Here is a Gantt chart for two batches of one dozen cookies each. It doesn't take twice as long to produce two batches as it does to produce one batch, because you can start mixing the second batch without having to wait for the whole firstbatch process to be completed (you can start washing out the bowl as soon as you finish filling the tray). It is possible to produce two batches in 36 minutes. Operations -- Prof. Juran In general, a formula for the number of minutes to produce n one-dozen batches is given by this expression: 16 10 n Operations -- Prof. Juran 5. How many food processors and baking trays will you need? We ought to be able to see that the processor is idle for long periods of time, and that the real bottleneck is the oven. Buying another food processor won't improve the productivity of the system at all. The number of baking trays ought to equal the maximum number of trays you will be using at any one time. Three is probably enough. Operations -- Prof. Juran Benihana Restaurant Operations -- Prof. Juran Benihana: Process Analysis Assume that the dining process takes 60 minutes, and that we want customers in the bar for 24 minutes. Consider two scenarios: Bar - 16 seats; Dining Area - 80 seats Bar - 48 seats; Dining Area - 120 seats Operations -- Prof. Juran Benihana: Process Analysis Bar - 16 seats; Dining Area - 80 seats (1:5 ratio) It takes 60 minutes for one customer to eat dinner, and there are 80 seats in the dining area. Therefore 80 people eat every 60 minutes (throughput). On the average a dinner cycle is completed every 60 minutes/80 people = 0.75 minutes per person (cycle time). We know that dinners are processed in batches of 8, so on the average a table of 8 finishes every 8 * 0.75 = 3 minutes. To deliver a flow of 80 diners per hour and keep the dining area full, the 16-seat bar must empty 80/16 = 5 times per hour (every 12 minutes). We would like for the bar to empty out every 24 minutes. Therefore, it would appear that the ratio of 1:5 (16 bar seats to 80 dining seats) is too small. Operations -- Prof. Juran Benihana: Process Analysis Bar - 48 seats; Dining Area - 120 seats (2:5 ratio) It takes 60 minutes for one customer to eat dinner, and there are 120 seats in the dining area. The dining room throughput is therefore 120 people per hour. On the average a dinner cycle is completed every 60 minutes/120 people = 0.5 minutes per person (cycle time). On the average a table of 8 finishes every 4 minutes. To send 8 people into the dining area every 4 minutes means that the 48-seat bar must empty every 120 / 48 = 2.5 times per hour, or once every 24 minutes. Perfect! Given our assumptions regarding the cycle times of the bar and the dining area, it would appear that a ratio of bar seats to grill seats of 2:5 (or 0.4 bar seat per dining seat) is about right. (In our case 120:48, but the ratio is more important than the specific numbers.) Operations -- Prof. Juran Littlefield Technologies •Setting Up the Game •Round 1 •Round 2 Operations -- Prof. Juran Registering Your Team http://tech.responsive.net/lt/juran/start.html Today! Create your team name and password No apostrophes! Operations -- Prof. Juran Playing Round 1 Sunday Juran “initializes” and then pauses the game, generating 50 days of data. While the game is paused, you can view your factory and analyze the first 50 days of data, but you can’t make changes yet: http://tech.responsive.net/lt/juran/entry.html Juran re-starts the game ~11:00 AM Sunday Jan. 18 The game ends automatically after 4 days, 22 hours, and 35 minutes (9:35 AM on Friday Jan. 23) Operations -- Prof. Juran Playing Round 1 Objective: Finish the game with the most cash Decision variables: Purchases/sales of machines at three manufacturing stations Written deliverable January 17: What is the situation in the factory? What decisions do you intend to make when the game re-starts? What analysis led you to make those decisions? 2 pages max. Written deliverable Jan. 31: How did your strategy work? What did you learn from this game? 2 pages max. Operations -- Prof. Juran Record Holders (Round 1) juranjuran $1,428,756 name $1,423,124 Shaurav Datta Gus Giacoman Jordin Greene Julia Lamm Paulo Souza (all MBA’11 NYU) Eliza Core Stewart Frey Rosny Hartono Philip Schubert Carlin Swint (all EMBA’09 Cornell) Operations -- Prof. Juran Record Holders (Round 2) synergy5 $1,604,719 webvan2 $1,536,599 Neil Mayer Douglas Monaster Yothin Peanpanich Jeff Shiue Diana Tsirlina (all MBA’10 NYU) Angela Best Alex Cass Steve Kang Ryan Mazeffa Richard Zhang (all EMBA’09 Cornell) Operations -- Prof. Juran Record Holders (Total) synergy5 $2,984,853 topops $2,790,077 Neil Mayer Douglas Monaster Yothin Peanpanich Jeff Shiue Diana Tsirlina (all MBA’10 NYU) Jason Apuzzio Piyush Bhatnagar Jason Farrell Yeliz Karakaya Lynne Mazin (all EMBA’09 Cornell) Operations -- Prof. Juran Summary • Types of Processes • Kristin • Benihana • Littlefield Operations -- Prof. Juran