Operations Management/Business Flow management Calculation Questions

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1. A manufacturing process has 1600 units of inventory waiting to be produced. The process’s flow rate is 800 units per 8-hour shift.

a. Using Little’s law, calculate the average flow time (in hour) for the work station.

b. a change is made to manufacturing system that reduced the amount of inventory. The new average flow time is observed to be 90mins. Assuming that the flow rate remains the same at 800 units per shift, what is the new average inventory level?

2. Consider a sandwich shop, where the process map shows the following flow (and average processing time per customer): (i) customer marks their selection on a form (average 45 seconds); (ii) sandwich is prepared by a sandwich maker (average 90sec); (iii) customer chooses additional items (average 60sec) – no worker involved.; (iv) payment processing at cashier (average 40sec); (v) customer gets their sandwich at pick up station (average 20sec). The shop employs 6 sandwich makers, 2 cashiers and 1 person at pick up station.

A) Calculate the effective capacity of the sandwich makers (customer/minute)

B) Calculate the effective capacity of the cashiers (customer/minute)

C) Calculate the effective capacity of the pickup station worker (customer/minute)

3. Consider a commercial printing operation that prints business forms, brochures and business cards utilizing high speed printers. Its dedicated business card printing equipment can print one card every 1.4seconds. There are two business card printing presses in the company which run 24/7. Orders for business cards average 110,000 cards per day.

a) Calculate the resource utilization of the business card printing presses.

b) If the daily forecast for business cards increases to 190,000 per day and downtime is expected to average 5%, how many card printing presses will be needed?

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