Powerful Essays

1

Examples of a Process in Service Companies

Processing an insurance claim for an accident.

Admitting a patient to a hospital.

Performing the 30,000-mile maintenance on a car.

2

Concepts
This case will familiarize you with the following concepts:
PROCESS FLOW DIAGRAM THROUGHPUT TIME FOR AN ACTIVITY THROUGHPUT TIME FOR THE PROCESS CAPACITY OF AN ACTIVITY CYCLE TIME OF AN ACTIVITY BOTTLENECK CAPACITY OF THE PROCESS CYCLE TIME OF THE PROCESS UTILIZATION OF A RESOURCE GANTT CHART PROCESS INCREASING THE CAPACITY OF A PROCESS
3

Process Flow Diagram for Kristen’s Cookies

4

Question 1
Assume that Kristen’s most important customer has just submitted an order for one dozen cookies, and that she wants to give the highest priority to this order. How long will it take to fill this order?

The time required to fill the “rush order” is: Process’s Throughput Time = NOTE: The answer of __ assumes that there no cookies in the oven, or, if there are cookies in the oven, the remaining baking time is at most 8 minutes. If cookies are in the oven and have a baking time in excess of 8 minutes, then, if the cookies are not removed from the oven, the time required to fill the “rush order” increases above __. 5

Question 2
Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled each night?

Which activity is the process’s bottleneck? The process’s bottleneck is

6

Question 2 (continued)
Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled each night?

Once it is “up and running”, what is the process’s hourly capacity?

The process’s hourly capacity equals

7

Question 2 (continued)
Assuming that Kristen’s Cookie Company is open for four hours each night, how many orders can be filled each night?

If we stood at the end of the process, and, if the process were continually busy, how much time would elapse between

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