ch 3
process management
The act of executing and controlling the productive functions of a firm
capcity=
m/activity time 1/processing time
flow rate (in terms of capacity)
minimum between demand rate and process capacity
bottleneck
process with lowest capacity
Demand Rate
the number of flow units that customers want per unit of time
demand rate
the number of flow units that customers want per unit of time
cycle time
the time between completing two consecutive flow units
lead time
the time between when an order is placed and when it is received
Cost of Direct Labor
total wages per unit of time / flow rate per unit of time
efficiency=
capacity used/effective capacity
utilization
how much available capacity is actually used
Efficiency
how much of effective capacity is actually used
cycle time=
1/flow rate
Project Managment
A controlled process of initiating, planning, executing, and closing down a project.
capacity constrained
Demand exceeds supply and the flow rate is equal to process capacity
Average labor utilization
Labor Content/(Labor Content + Idle Time)
effective capacity
achievable level under normal conditions, for an extended time
throughput
aka as flow rate
capacity
amount of input that can go into or the amount of output that can be created by a process, at a given level of resources over a given time period
Flow units waiting in the process without being worked on are often referred to as
buffer inventory
For a process that is ___________ constrained the bottleneck resource will have 100% utilization.
capacity
process capacity
capacity of the bottleneck
maximum capacity is also know as
design or rate capacity
Flow rate can be __________ process capacity (2 answers)
equal to, greater than
True or false: A process that is demand constrained can have utilization of 100%.
false
True or false: The flow rate for a process should be greater than the demand rate
false
utilization=
flow rate/capacity
maximum capacity
highest achievable level under ideal conditions, for a limited time
process analysis
identifies and analyzes all the activities involved in serving one unit of demand or, put differently, in providing one unit of supply
Resources help the flow units to move from being a unit of ________ to a unit of _________
input;output
