In the Base Model (with WIP= 4 units, Mean Daily production = 3.5, Maximum Variation Around Mean =2.5 units at all operations), a bottleneck can be established by setting Mean Daily Production at 3 units and Maximum Variation around Mean at 1 unit for a specific process (in Panel B). Create three scenarios by letting operation 1, operation 3, and operation 5 be the bottleneck operation in each scenario. Hit F9 few times. Copy and Paste Special your results from (Panel E) for 1000 Runs for each of these three scenarios into the Scenario Output worksheet where you have already saved your results for the base model and variation related scenarios. Click here for discussion question.

1. Discuss the impact of the location of the constraint operation on various system performance measures (including customer service, lead time, productivity, inventory turnover) shown and clearly defined in Panel E of the model.
2. Discuss how these three scenarios (i.e., presence of a constraint) compare with those from (i) the base model, and (ii) change in variation model (you reported earlier and reproduced below).
3. In general terms, discuss how these scenarios relates to what you have read in The Goal (specifically, The Hike, and the chapter on Capacity and Constraints Management you are reading in this module.
4. In general terms, how do you think the concepts of (i) Design Capacity, (ii) effective capacity and actual output as discussed in this chapter relate to this Excel-Based Dice Game.

Note that in each of these three scenarios, the net change in operating expenses is zero because the model assumes reduction in variation from 2.5 units to 1.0 is worth $600 (@ $200/0.5 unit reduction and reduction in capacity from 3.5 to 3.0 units is worth $600 (@$600/0.5 unit increased as shown in Cell C43 and C44 in Excel-based Model).

B I U $ % 9 = = = =+ Merge & Center Format Painter 020 Formatting Table Clipboard Font Alignment Number N12 : f N N 0 . B D E F G H J K L M 1 2 Results from various Scenarios (copied and pasted as "values" from the Excel-Model) 3 Base Modell Impact of Variability 4 Performance 4 units 5 1 2 3 4 5 6 7 8 9 10 6 Starting WIP (Day 0) 16 16 16 16 16 7 RM Released: 60 60 59 60 59 8 Ending WIP: 17 18 17 18 17 9 Quantity Shipped: 58 58 58 58 58 10 Throughput: $17,980 $17,980 $17,980 $17,980 $17,980 11 Inventory: $53,318 $53,366 $53,194 $53,342 $53,196 12 Operating Expenses: $11,397 $11,417 $11,345 $11,407 $11,346 13 Net Profit $6,583 $6,563 $6,635 $6,573 $6,634 14 ROI: 12% 12% 12% 12% 12% 15 Customer Service: 82.86% 82.86% 82.86% 82.86% 82.86% 16 Lead Time: 6.02 6.11 5.80 6.06 5.80 17 Productivity: 1.58 1.57 1.58 1.58 1.58 18 Inventory Turnover: 3.32 3.27 3.45 3.30 3.45 19 Note: Copy and Paste Special (using "values" option) the system performance measures (Cells D47-D59) for each scenario 20 Note: We will use this worksheet throughout the semester and fill the subsequent columns with more scenarios and compare and contrast them. 21 22 23 24 25 26 B I U $ % 9 = = = =+ Merge & Center Format Painter 020 Formatting Table Clipboard Font Alignment Number N12 : f N N 0 . B D E F G H J K L M 1 2 Results from various Scenarios (copied and pasted as "values" from the Excel-Model) 3 Base Modell Impact of Variability 4 Performance 4 units 5 1 2 3 4 5 6 7 8 9 10 6 Starting WIP (Day 0) 16 16 16 16 16 7 RM Released: 60 60 59 60 59 8 Ending WIP: 17 18 17 18 17 9 Quantity Shipped: 58 58 58 58 58 10 Throughput: $17,980 $17,980 $17,980 $17,980 $17,980 11 Inventory: $53,318 $53,366 $53,194 $53,342 $53,196 12 Operating Expenses: $11,397 $11,417 $11,345 $11,407 $11,346 13 Net Profit $6,583 $6,563 $6,635 $6,573 $6,634 14 ROI: 12% 12% 12% 12% 12% 15 Customer Service: 82.86% 82.86% 82.86% 82.86% 82.86% 16 Lead Time: 6.02 6.11 5.80 6.06 5.80 17 Productivity: 1.58 1.57 1.58 1.58 1.58 18 Inventory Turnover: 3.32 3.27 3.45 3.30 3.45 19 Note: Copy and Paste Special (using "values" option) the system performance measures (Cells D47-D59) for each scenario 20 Note: We will use this worksheet throughout the semester and fill the subsequent columns with more scenarios and compare and contrast them. 21 22 23 24 25 26