MGBU 3438 Lecture Notes - Lecture 3: Variable Cost
8 Feb 2019
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Inputs and outputs: other processes that impact process being evaluated, change of one department may impact others. Corporate strategy: understand how process contributes to firms" competitive advantage, key measures to be used to evaluate. Boxes: task or operation (consumes time: activities and tasks. Arrows (label each: flow of goods and services/information/dollars. Buffer: storage area between stages where output of a stage is placed prior to being used in a downstream, stage: bottleneck. Process capacity: minimum (capacity of resource 1 capacity of resource n) Maximum output of one process within certain time period. Throughput is minimum of: supply, demand or capacity. Throughput (tp): rate at which the system generates money through sales. Can be limited by either capacity of system or by the market. Capacity: number of units the system is capable of producing in a given units of time. Longest station controls process (minimum capacity) = food. 11:00-12:00 on average 10 students/hour (throughput of process is 10, minimum = demand)
