MAN 4504 Lecture Notes - Lecture 11: Variable Cost, Emv, Net Present Value
Document Summary
Each work area can have its own unique capacity. Capacity analysis determines the throughput capacity of workstations in a system. A bottleneck is a limiting factor or constraint. A bottleneck has the lowest effective capacity in a system. Process time for stations, systems, & cycles. The process time of a station is the time to produce a unit at that single workstation. The process time of a system is the time of the longest process in the system. The cycle time of a system (theoretical cycle time) is the time it takes for a product to go through the production process with no waiting. We often have multiple stations & parallel processes within a system. > we must adjust our thinking to deal with this when we consider analyzing a system. Lines have 2 workers & 3 operations. Cleaning & examining x-rays can happen simultaneously. Release work orders to the system at the pace set by the bottleneck.