In-Class Lecture 10/4/2010

Tuesday, September 21, 2010 11:29 PM

MIDTERM WILL BE OPEN BOOK!!!

Went over Page 733 Problem 4 & 5 see lecture notes in mgmt840 section of thumb drive for answers (10-4-2010.xls)
It may be useful to utilize tables of known values so that Excel sheets do not become confusing

Went over Learning Curves 2nd

T(2n)/T(n) = constant (where T = time of production of n units) This is a number usually under 1 If this is true T(n) = T(1)*n^b T(2n)/T(n) = L (where L is learning curve) 2^(b)= L B = log(L)/log(2) Reality may not exactly fit the model

Went over homework third. see lecture notes in mgmt840 section of thumb drive for answers (10-4-2010.xls)

Went over Page 86 Problem 5 next: see homework assignment

Went over Problem 6 from Page 86 next, as a class member had a question about it.

Went over the following problem from Quiz 2

Went over PowerPoint lectures 5-8 Chapter 5 Lecture In a job shop Volume is high and Variety is low Similar production is done over and over (flow-shop) Projects are more specific then the flow-shops 5 types of productions Flow-Shop Project Batch Job-Shop More training Assembly-Line Little's Law is Weight * Rate = Length IE: Rate of Ford cars is 20/hour R = 20/hr (Throughput) Cycle time is 1/20 (ie: 1 every 3 minutes) L (length in the line) L = 100 cars W (weight) W = L/R = 100/20 = 5 hours Sometimes increasing utilization is not the best goal Flowcharts help truly understand everything about a project Performance Measures See things that you may not have seen before If the process is important create the flowchart!!!

2 components, one is the standby for the other. You need to multiply .2 (the failure chance) by .2 .2*.2=0.04 Formula is =P(A fail) * P(B fail)

Cycle Time: 200 parts per day, 8 hour day

8/200=0.04 0.04 *60 = 2.4 per minute

Flowchart Example (from Las Vegas Example in Chapter 5)

These are the standard symbols of flow charts Makes everything easier to understand There can be several stages or one stage Buffer A storage area between stages where output of a stage is placed prior to being used in a downstream stage Blocking Occurs when the activities in a stage must stop because there is no place to deposit the item Starving Occurs when the activities in a stage must sop because there is no work Bottleneck-

Lecture Notes 10-4-2010 Page 1

there is no place to deposit the item Starving Occurs when the activities in a stage must sop because there is no work Bottleneck Stage that limits the capacity of the process Make to order Not made until you order it Customizable Make to stock IE: supermarket, goods are stocked on shelves and you buy them if you want them Inventory = flow time * Throughput rate (make sure to match units) Total average value of inventory Sum of the value of raw materials, work-in-process, and finished goods inventory Inventory turns

Cost of goods sold divided by the average inventory value Days-of-supply Inverse of inventory turns scaled to days Littles law There is a long-term relationship between inventory, throughput, and flow time
Inventory = Throughput rate X Flow time See PowerPoint 5 for a good example of Little's Law on Slides 15-26 Measuring Process Performance:

Lecture Notes 10-4-2010 Page 2