MM – OM Session 2 a Henry Yuliando. Process Flow Measures. Process Flow Measures. The essence of process flow including : Flow time ; indicates the time needed to convert inputs into outputs and includes any time spent by a flow unit waiting for processing activities to be performed.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Process Flow Measures
Input and Output Flow Rates for a Process with Two Entry Points
R(t) = Ri(t) – Ro(t)
(ex : inflow 600 passenger per hour; outflow 12 passengers per minute or equal 720 passengers per hour; means that in the long rung the average outflow rate is 600 passengers per hour)
I = (33 min x 30 passengers + 27 min x 0 passengers)/60 min
= 17.5 passengers
T = I/R = 17.5 passengers/10 passengers per minute =
= 1.75 minutes pax/minute
where R = 600 passengers per hour or 10 passengers per minute.
It was suggested that (Process II) :
Process II was implemented on an experimental basis.
Average inventory I = 500 applications
Average flow time T = I/R = 0.5 months = 15 days.
II = 25
IIR = 200
II = 150
Throughput = 1000 applications/month
Average inventory = 200 applications
Average flow time TIR= IIR/RIR = 200/1000 months
= 0.2 months = 6 days
Throughput RA = 250 applications/month
Average inventory IA = 25 applications
Average flow time TA= IA/RA = 25/250 months = 0.1 months = 3 days
Throughput R B = 250 applications/month
Average inventory IB = 150 applications
Average flow time TA= IA/RA = 150/250 months = 0.6 months = 18 days
Throughput RAR= $250 million/year (Net sales – table 1)
Average inventory IAR= $27.9 million (Receivables – table 2)
Average flow time TAR = IAR / RAR = 0.112 years = 5.80 6 weeks
$50.1 million/year in raw materials
+ $60.2 million in labor and overhead
= $110.3 million/year
$110.3 million/years in roofs
+ $ 40.2 million/year in bases
+ $ 25.3 million/year in labor & overhead
= $175.8 million
Raw materials (roofs)
Purchased parts (bases)
*=rounding to 52 weeks per year