Cheat Sheet

Cycle time: Bottleneck| Cycle time = 1/Capacity rate | | Inventory = Throughput Rate x Flow Time | Little’s Law: I = R x T | Inventory Turns (IT) = 1 / Flow time (T) = R / I | BCWS = Budgeted Cost of Work Scheduled BCWC = Budgeted Cost of Work Complete |ACWC = Actual Cost of Work Complete | Cost Variance CV = BCWC – ACWC | Schedule variance SV = BCWC – BCWS | Utilization=Demand /CAPACITY| Inventory Buildup rate IBR|No IBR if no stations limits Throughput rate| Capacity rate = 1 / Cycle time = 1/55 /second | Convert to hourly base: 3600 seconds/hr * Capacity Rate | Business strategy should by compatible with operational structure that is with the Order Winners=Cost/ price, Quality, response time (delivery lead time)-speed, flexibility/variety.| Slack time = late start – late finish, duration = total length of critical path longest time.| Expected Time = Optimistic Time + 4(Likely Time) + LD score (i, j) = Load (i, j) x Distance (i, j) Flow Time Analysis Cycle time: Bottleneck Total operation time Operation time = Labor time associated with one product Flow time Flow time (item) = Operation Time + Delay Delay = Aging + WIP + Other possible delays (Rework) Flow time efficiency Theoretical flow time / Actual flow time Recall the other efficiencies Class 06 – Basic Tools of Process Design Efficiency = Sum of tasks time / (Actual # of stations  Required cycle time) Class 07 – Samsung International Labor efficiency = Average working time / Bottleneck cycle time Inventory Turns (IT) = 1 / Flow time (T) Little’s Law: Average I = R x Average T Average Inventory Turns = R / Average I Last Class: Variability: Customer demand for finished goods, availability of raw materials, processing capacity. Predictability /stochastic are the two types of variability. Average service rate, customer served in a particular time, an arriving part that is prevented from entering the system because the line is