OPERATIONS MANAGEMENT Edited

OPERATIONS MANAGEMENT
PRESENTED BY:
RESHAM KAUR 100
Guided by:
TANUSHRI SHARMAN 117
ANIL BALLA 67 Prof. Rupesh Siyodia
AKASH PATIL 124
CAPACITY PLANNING USING MTS, ATO & MTO
THE CASE OF SERVICES
PEAK HOURS NON-PEAK HOURS

- Assemble to order - Made to order
- Service Portfolio (narrow) - Service Portfolio (wide)
- Demand management - Demand management
Reservations Special Tariffs, offers
- Exploiting
Multi-skill labour
Flexible work force
PROCESS ANALYSIS
• Process analysis involves mapping out a current process and then, identifying
bottle-necks or redundancies that make the process less than effective.
• It is an ongoing improvement process where organizations analyze the way

they do things in order to find more efficient methods to perform a particular
task.
3 Elements of any activity:
1. Input
2. Process
3. Output
PROCESS FLOW CHART
 The use of a diagram to present the
major elements of a process is called
Process Flowcharting.
 Flowcharts are used in analyzing,
designing, documenting or managing a
process or program in various fields.
 The basic elements of a process flow
charts can include tasks or operations,
flows of materials or customers, decision
points and storage areas or queues.
 Separating a diagram into different
horizontal or vertical bands sometimes is
useful.
 It is an ideal methodology by which to
begin analyzing a process.
STAGES IN A PROCESS
The one way to categorize a process is single-stage or multiple-stage.
- Single-stage: All the activities could be collapsed and analyzed using a single cycle time to represent
the speed of the process.
- Multiple-stage: Has multiple groups of activities that are linked through flows.
Stage: Multiple activities that have been puled together for analysis purposes.
STAGE 1 STAGE 2 STAGE 3

STAGES IN A PROCESS
Buffering: A storage area between stages where the output of a stage is placed prior to being
used in a downstream stage.
Blocking: This occurs when the activities in the stage must stop because there is no place to
deposit the item.
Starving: This occurs when the activities in a stage must stop because there is no work.
Bottleneck: The stage that limits the capacity of the process.
BUFFER
STAGE1 STAGE 3
MEASURING PROCESS PERFORMANCE
• Benchmarking
• Productivity- The ratio of output to input.
• Efficiency- Amt of work Completed to standard output of that process
• Operation Time- The sum of the setup time and run time for a batch of parts that are
run on a machine.
• Setup Time- The time required to prepare a machine to make a particular item.
• Run Time
MEASURING PROCESS PERFORMANCE
• Flow Time: The average time that it takes a unit to move through an entire process. It includes the time
the unit spends actually being worked on, together with the time spent waiting in a queue.
• Process Velocity: The ratio of the value added time to the flow time.
• Value-added Time: The time in which useful work is actually being done on the unit.
• Cycle Time: In practice, the term cycle time is often used to mean flow time.
• Throughput Rate: The output rate that the process is expected to produce over a period of time.
• Utilization: The ratio of the time that a resource is actually activated relative to the time that it is
available for use.
FORMULAS
Operation Time = Setup Time + Run Time
Flow Time = Average time for a unit to move through the system
Velocity = Value-added time / Flow time
Cycle Time = Average time between completion of units
Throughput rate = 1 / Cycle time
Efficiency = Actual output / Standard output
Productivity = Output / Input
Utilization = Time activated / Time available

NUMERICALS
1. The Setup time of the machine is 1 hour. A worker takes 30 minutes to string one racquet. For a batch size
of 100 racquets. Calculate the Following
• Run Time
• Operation Time
• Cycle Time
• Throughput Rate
Solution:-
Run Time = Time taken to complete one unit x Batch size

= 30 x 100 = 3000 minutes
Operation Time = Run Time + Setup Time
= 3000 + 60 = 3060 minutes
Cycle Time = Operation Time/Batch Size
= 3060/100 = 30.6 minutes
Throughput Rate = 1/Cycle time = 1/30.6 = 0.033 units per minute
2. The design capacity for machine repair in a company is 40 machines/day. The effective capacity is 20
machines/day and the actual output is 18 machines/day. Calculate the utilization and efficiency of the
operation.
Solution:
Utilization = Time activated/Time available x 100

= 18/40 x 100
= 45%
Efficiency = Actual Output/Standard Output x 100

= 18/20 x 100
= 90%

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OPERATIONS MANAGEMENT

PEAK HOURS NON-PEAK HOURS

• It is an ongoing improvement process where organizations analyze the way

3 Elements of any activity:

STAGE 1 STAGE 2 STAGE 3

Velocity = Value-added time / Flow time

Cycle Time = Average time between completion of units

Throughput rate = 1 / Cycle time

Efficiency = Actual output / Standard output

Productivity = Output / Input

Utilization = Time activated / Time available

Run Time = Time taken to complete one unit x Batch size

Utilization = Time activated/Time available x 100

Efficiency = Actual Output/Standard Output x 100

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