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RSM270 Cheat Sheet Midterm

The document outlines key concepts in operations management, including processes, efficiency, effectiveness, and productivity measures such as labor productivity and total factor productivity. It discusses the importance of capacity, flow units, and bottlenecks in optimizing processes, as well as the implications of variability on utilization. Additionally, it introduces concepts like buffering, blocking, and starving in the context of process management.

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shivanshdubey30
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15 views2 pages

RSM270 Cheat Sheet Midterm

The document outlines key concepts in operations management, including processes, efficiency, effectiveness, and productivity measures such as labor productivity and total factor productivity. It discusses the importance of capacity, flow units, and bottlenecks in optimizing processes, as well as the implications of variability on utilization. Additionally, it introduces concepts like buffering, blocking, and starving in the context of process management.

Uploaded by

shivanshdubey30
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Process: Set of tasks that transform inputs into outputs 12am to 12pm (the last truck arrives at 11 am)

the last truck arrives at 11 am) at a constant rate of 2 tons/hour, The fruits
Services Vs Goods : Services are intangible, perishable, inseparable, heterogenous, are dumped into a big storage bin and processed at a rate of 1 ton/hour.
evaluated as a package
Processes interested : Planning -> Sourcing -> Make -> Delivering -> Returning
Efficiency: Doing something at the lowest possible cost
Effectiveness: Doing the right things to create the most value
What can go wrong? Poor design & ineffective, or inefficient
Productivity: Productivity is a common measure on how well resources are being used.
Broadest sense, it is defined as the following ratio: Outputs / Inputs
Partial measure of productivity (PMP): When there’s no truck buffer, zig-zag line till 12 pm
For example, Labor productivity = Output/Labor (Ex: Car Manufacturer: vehicles per Inventory = Throughput Rate x Waiting Time
man hour) (flow unit) = (flow unit/time unit) x (time unit)
Multi-factor measures of productivity (MFP): Output/(Labor + Capital + Material) These 3 are intimately related - a manager cann influence any one of these measures by
Total Factor Productivity (TFP): Includes all factors of production Output/(All Input) controlling the other two - can’t do them independently, 2 chose
Output/(Capital+Material+Equipment+Facilities+Labor+Knowledge+Time) If we can build up inventory by inserting buffer, variabillitty leads to inc in avg inventory
in process, avg flow time, not losing customers immediately, few unhappy customers,
more utillization; LITTLES LAW HOLDS
Lecture 2
Capacity Rate: The amount of output a system is capable of achieving over a time perio Lecture 4

Flow Units: Unit of analysis that flow through process


Input Rate: Rate at which units arriving at the system.
Output Rate: Rate at which units are leaving the system.
Capacity: Maximum rate at which units can leave syste
Flow time:Time spent in process
Stocks: What parts of the process do units spend more time at? (Inventory Builld Up) OM Triangle - relation bw capacity,
In linear flow charts, depict buffers with a triangle. information & inventory. If capacity is low
Bottleneck: The slowest process in a subprocess is called (p=0.3), and you reduce the capacity(p=0.9),
the bottleneck - the weak link; it determines the capacity then inventory inc - more customers wait, wait
rate of the entire process. (p=1) times go up.
Cycle Time: Time between completed units. Firm’s choice of optimal position on OM
Cycle time = 1/(Output Rate) triangle depends on strategic objective,
Flow Time: Time to complete each unit consider costs of each (NPV, Cost-benefit anly)
For a multi-stage process, the cycle time and flow time
are not the same.
To increase the capacity of a process, increase the Utillization Insight: With no variability - maximising utilization is a good idea; with
capacity of the bottleneck subprocess. Bottleneck may variability, a terrible idea - correct utilization depends on amount of variability. Delays.
change - determine which is new bottleneck.
Buffering: A storage area bw stages where the output of
a stage is placed to being used in a downstream stage.
Blocking: occurs when the activities in the stage must
stop because there is no place to place the item just
completed.
Starving: occurs when the activities in a stage must stop
because there is no work

In
many situations, the exponential distribution
assumption is a good approximation for what really
happens. These assumptions simplify the analysis
because the coefficient of variation (CV) of the
exponential distributions is 1
Lecture 3
Lecture 5

Cranberry Little’s law for


Example: multi-server queue: Tq = Iq/lamda
Farmers deliver Total flow time: T = I/lamda; = (Iq+Is)/lamda = Iq/lamda +
their loads of 1/mu
cranberries from
Consider an RBC branch near the University of Toronto campus with 4 ATMs, which
serves 110 customers per hour on average during a peak period. Each customer uses an
ATM for 2 minutes on average (when not mentioned, suppose exponential distribution)

SAMPLE
QUESTIONS

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