Flow Rate
Chapter 5: Flow Rate and Capacity Analysis
5.1 Objective
Chapter 3 introduced the three basic building blocks of process flow namely the (average) flow time, (average) flow rate and (average) inventory. It is followed by a sequence of three chapters, 4, 5 and 6, which examine each one of these measures individually. Chapter 5 is concerned with flow rate analysis and issues of capacity. The major managerial concept discussed in the in the chapter is that of the bottleneck. We use the notion of the theoretical capacity as a practical and easy to grasp introduction to this topic.
5.2 Additional Suggested Readings
As in the case of the previous chapter, we assign Pizza Pazza (Kellogg case) as the major case for this module. (The Kristen Cookie Company, (HBR case #9-686-093) is a fine alternative; see problem 2 at end of chapter). The case is simple and accessible to most students, yet allows a rich discussion of the various factors that affect flow rate such as batch size, oven size and type, etc. In addition, the effects of product mix are introduced using the MBPF, Inc. example of building garages, (see problem 3). The example is small enough that it can be analyzed without the use of any formal optimization tools. For more complex examples, we rely on LP formulation, which are solved using the SOLVER routine of Excel.
The chapter provides an excellent opportunity to discuss the book The Goal (E.M. Goldratt and J.
Cox, North River Press, 1992), which most our students find very informative and entertaining.
We assign the National Cranberry Cooperative case (HBS case # 9-675-014) which allows students to test and apply the concepts learned in a fairly complex setting.
Suggested Questions:
1. Draw a detailed process flow map of the current process at Receiving Plant #1. What is the capacity of each operation in the process?
2. What is the maximum long-term achievable throughput rate of Receiving Plant #1? What factors affect this
5.1 Objective
Chapter 3 introduced the three basic building blocks of process flow namely the (average) flow time, (average) flow rate and (average) inventory. It is followed by a sequence of three chapters, 4, 5 and 6, which examine each one of these measures individually. Chapter 5 is concerned with flow rate analysis and issues of capacity. The major managerial concept discussed in the in the chapter is that of the bottleneck. We use the notion of the theoretical capacity as a practical and easy to grasp introduction to this topic.
5.2 Additional Suggested Readings
As in the case of the previous chapter, we assign Pizza Pazza (Kellogg case) as the major case for this module. (The Kristen Cookie Company, (HBR case #9-686-093) is a fine alternative; see problem 2 at end of chapter). The case is simple and accessible to most students, yet allows a rich discussion of the various factors that affect flow rate such as batch size, oven size and type, etc. In addition, the effects of product mix are introduced using the MBPF, Inc. example of building garages, (see problem 3). The example is small enough that it can be analyzed without the use of any formal optimization tools. For more complex examples, we rely on LP formulation, which are solved using the SOLVER routine of Excel.
The chapter provides an excellent opportunity to discuss the book The Goal (E.M. Goldratt and J.
Cox, North River Press, 1992), which most our students find very informative and entertaining.
We assign the National Cranberry Cooperative case (HBS case # 9-675-014) which allows students to test and apply the concepts learned in a fairly complex setting.
Suggested Questions:
1. Draw a detailed process flow map of the current process at Receiving Plant #1. What is the capacity of each operation in the process?
2. What is the maximum long-term achievable throughput rate of Receiving Plant #1? What factors affect this