Qmb 3600
Chapter
7
Constraint Management
DISCUSSION QUESTIONS 1. Examples of everyday bottlenecks include traffic lights, drive-thru windows at the bank or fast food restaurants. On the highway merging lanes and speed zones. Maintaining constant speeds, setting traffic lights to coordinate traffic patterns and only allow highway construction after rush hour. Fast food restaurants have two windows, pull over spots and new cash card options to reduce time at the window. 2. The primary economies of scale concern spreading the instructor’s salary over a larger class and filling classrooms to capacity (and then some). Diseconomies occur when additional help is required to review homework, administer tests, and coordinate schedules of students and assistants. Growth eventually requires larger classrooms or lecture halls. If we view the product as learning, there is a possibility that diminishing returns on the amount of learning occur as class size increases. Symptoms of diseconomies of scale setting in are decreased job satisfaction for instructors and unmotivated, dissatisfied students. If close customer contact is needed for this kind of service process, diseconomies of scale tend to set in earlier. 3. When demand for the drink is large enough, there are several ways that economies of scale would benefit the boy. First, he can save on raw material costs. For example, one 32-ounce box of lemonade mix costs less than four 8-ounce boxes. Also, he could get a price break by buying ice in bulk. Second, the cost of larger iceboxes can be spread over more units (sales), keeping the cost per sale low. Text problem p. 279 also asked for conditions that might lead to diseconomies of scale. PROBLEMS 1. Bill’s Barbershop a. B3-a = 10+8+15+20+9 = 62 minutes B3-b = 10+8+10+20+9=57 minutes b. B4 c. process cycle time is 20 min./60 = 3 customers/hr. (8 hrs) = 24 customers per day
102
PART 2
Managing Processes
2. Barbara’s Boutique a. 3 [the bottleneck is step T4 at 18
7
Constraint Management
DISCUSSION QUESTIONS 1. Examples of everyday bottlenecks include traffic lights, drive-thru windows at the bank or fast food restaurants. On the highway merging lanes and speed zones. Maintaining constant speeds, setting traffic lights to coordinate traffic patterns and only allow highway construction after rush hour. Fast food restaurants have two windows, pull over spots and new cash card options to reduce time at the window. 2. The primary economies of scale concern spreading the instructor’s salary over a larger class and filling classrooms to capacity (and then some). Diseconomies occur when additional help is required to review homework, administer tests, and coordinate schedules of students and assistants. Growth eventually requires larger classrooms or lecture halls. If we view the product as learning, there is a possibility that diminishing returns on the amount of learning occur as class size increases. Symptoms of diseconomies of scale setting in are decreased job satisfaction for instructors and unmotivated, dissatisfied students. If close customer contact is needed for this kind of service process, diseconomies of scale tend to set in earlier. 3. When demand for the drink is large enough, there are several ways that economies of scale would benefit the boy. First, he can save on raw material costs. For example, one 32-ounce box of lemonade mix costs less than four 8-ounce boxes. Also, he could get a price break by buying ice in bulk. Second, the cost of larger iceboxes can be spread over more units (sales), keeping the cost per sale low. Text problem p. 279 also asked for conditions that might lead to diseconomies of scale. PROBLEMS 1. Bill’s Barbershop a. B3-a = 10+8+15+20+9 = 62 minutes B3-b = 10+8+10+20+9=57 minutes b. B4 c. process cycle time is 20 min./60 = 3 customers/hr. (8 hrs) = 24 customers per day
102
PART 2
Managing Processes
2. Barbara’s Boutique a. 3 [the bottleneck is step T4 at 18