SCM 303 Lecture Notes - Lecture 3: Finished Good
Document Summary
What is a process: system of structured activities that use resources to transform inputs into outputs. Inputs vs. resources: inputs undergo transformation while resources are used to transform inputs, inputs: materials, parts, customers, requests, resources: people, machines, tools, knowledge, money. Graphical description of a process: holding. Batching: batch: or lot , producing more than one product or service at a time. Process capacity: capacity: amount of output that can be created by a process, at a given level of resources over a given period, capacity = units/time. Bottlenecks: any activity, input, or resource that limits capacity (the ability of the process to generate output, could be worker, skill type, machine, department, facility, only get rid of a bottleneck if you want to increase output. Blocking and starving: inventory or buildups upstream from an activity (blocking, vacuum downstream from an activity (starving) Cycle time: the average time between successive units produced or customers served, cycle time = time/1 unit.
