ENVB 437 Lecture Notes - Lecture 11: Profit Margin, Starbucks, Operations Management
4 Jun 2018
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Department
Course
Professor
MGCR 472 – Operations Management
Evaluating the Process Capacity
*Please note that these are complement notes to the slides.
Capacity: What is the number of flow unit that could go through the process?
Example of starbucks coffee shop:
1. Task 1: Give the order
2. Task 2: Take the order
3. Task 3: Add sugar/milk
We can assess the efficiency by assessing the maximum number of flow units in the overall
process or each task.
Bottleneck: Check which rpoduction step or service step limits the process capacity
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Resource Unit: Example
While giving the order, each cashier ia resource for you.
Whenever you go to the coffee shop, there can be 1 person or more.
Each of the person/worker who gets your order is seen as a resource unit.
In terms of the work center, if you are dealing with multiple resource units (combination of
every resource unit that performs the same activity).
If there are 2-3 cashiers working at the same time, we can see this part of the activity as a work
center.
Capacity of the unit/work center: Repeat this through the whole process to have the process
capacity.
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find more resources at oneclass.com
For each activity of the process, we will calculate the capacity and then define the bottleneck in
the system.
The bottleneck of the process is the one with the smallest flow rate or longest flow time.
Stage 3: The one with the smallest throughput rate gives the bottleneck.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
*please note that these are complement notes to the slides. Example of starbucks coffee shop: task 1: give the order, task 2: take the order, task 3: add sugar/milk. We can assess the efficiency by assessing the maximum number of flow units in the overall process or each task. Bottleneck: check which rpoduction step or service step limits the process capacity. While giving the order, each cashier ia resource for you. Whenever you go to the coffee shop, there can be 1 person or more. Each of the person/worker who gets your order is seen as a resource unit. In terms of the work center, if you are dealing with multiple resource units (combination of every resource unit that performs the same activity). If there are 2-3 cashiers working at the same time, we can see this part of the activity as a work center.
