Operations Managemnet -- Exam 3

bottleneck

a limit or constraint on the workflow in an operation

capacity utilization

actual output/design capacity x 100% a measure of the extent to which the capacity designed and installed is actually used

capacity efficiency

actual output/effective capacity x 100 a measure of how well the available effective capacity is being used to produce the actual output

actual output

also called actual capacity, the capacity that can be achieved given all production factors, not just regular changes in the production process

COMMWIP

correction overproduction motion material movement waiting inventory processing

effective capacity

the capacity that can be achieved given the actual changes in product mixture, machines, and equipment that require periodic maintenance, scheduling changes, and workers who take time off for lunch, absences, and other needs

design capacity

the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions

diagram problems in order

total minutes : given work : given but need to convert to minutes demand : given how often to produce : work minutes / demand # of work stations : total minutes / answer from how often to produce workstations : need to put the workstations together efficiency : total minutes / # of workstations found x answer from how often to produce answer from how often to produce can not go over this number when finding workstations

how to find total cost

volume x sum of variable cost + fixed cost Excel $d$9 x Sum (d3:f3) + c3