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please urgent help needed lakt time measure which b. I Discussion Questions ( Why Is It portant to look a formance, as measured by average
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lakt time measure which b. I Discussion Questions ( Why Is It portant to look a formance, as measured by average Inventory avera e gate flow pe flow time, and average throughput? 3.2 Discuss why it is often easier to measure average inventory and average throughput rather than aver- age flow time How can a manager determine the minimal set of operational measures that should be tracked on a daily basis to predict the financial performances of a process? The Internal Revenue's Department of Tax Regulations writes regulations in accordance with laws passed by Congress. On average, the department completes 300 projects per year. The Wall Street Journal reports that, as of October 11, 2011, the number of projects.currently "on the department's plate" is 588. Nevertheless, the department head claims that average time to complete a project is less than six months. Do you have any rea- son to disagree? Why or why not? The Wall Street Journal reported that although GM and Toyota are operating with the same number of inventory turns, Toyota's throughput is twice that of GM." The discrepancy, concluded the writer, could be due to much faster flow times and lower invento- Exercises C3.1 A bank finds that the average number of people wait- ing in line during lunch hour is 10. On average, dur- ing this period, 2 people per minute leave the bank after receiving service. On average, how long do bank customers wait in line? 3.2 At the drive-through counter of a fast-food outlet, an average of 10 cars waits in line. The manager wants to determine if the length of the line is having any impact on potential sales. A study reveals that, on average, 2 cars per minute try to enter the drive- through area, but 25 percent of the drivers of these cars are dismayed by the long line and simply move on without placing orders. Assume that no car that at of on a of a ions by 300 t, as ntly the Slete rea- consistents If both have U same inventory turns, they have the same flow time, but Toyota has higher average inventory than GM c. The two statements are inconsistent. If both have the same inventory turns, they have the same flow time but Toyota has lower average inventory than GM. d. The two statements are inconsistent: If both have the same inventory turns, they have the same aver- age inventory; but Toyota has higher flow time than GM. e. The two statements are inconsistent: if both have the same inventory turns, they have the same average inventory; but Toyota has lower flow time than GM 3.6 is there a difference between low inventories and fast inventory turnover? 37 Is there a difference between flow time and takt time? Illustrate with an example. 3.8 Why is it preferable to have a short cost-to-cash cycle, and how can that be achieved? GM er of at of ould ento- wait- dur- bank bank et, an nts to 3 any enters the line leaves without service. On average, how long does a car spend in the drive-through line? Checking accounts at a local bank carry an average balance of $3,000. The bank turns over its balance 6 times a year. On average how many dollars flow Through the bank each month? A hospital emergency room (ER) is currently organ- ized so that all patients register through an initial check-in process. At his or her turn, each patient is seen by a doctor and then exits the process, either with a prescription or with admission to the hospi- tal. Currently, 55 people per hour arrive at the ER 10 percent of who are admitted to the hospital. On these move grar wait mon The 8.00 time Or rescriptions an area staffale Simple to ope OLI CU U doctors? On average, how many patients are there in the ER? Assume the process to be stable that is, average inflow rate equals average outflow rate. 3.5 triage system has been proposed for the ER described in Exercise 34 Under the proposed triage plan, entering patients will be registered as before They will then be quickly examined by a une practi- tioner who will classify them as Sungle Triptions or Potential Admits Wule Simple l'escruptions will move on to an area staffed for regular cane Potential Admits will be taken to the emergency area Tanner anticipate that the initial examination will take 3 -> utes. They expect that, on average, 20 patients wmbe wanting to register and 5 will be waiting to be seen by the triage nurse Recall that registration takes an aver age of 2 minutes per patient. The triage nurse is expected to take an average of 1 minute per patient Planners expect the Simple Prescriptions area to have, on average, 15 patients waiting to be seer. As before, once a patient's turn comes, each will take 5 minutes of a doctor's time. The hospital anticipates that on average the emergency arca will have only patient waiting to be seen. As before, once that patient's tum comes, he or she will take 30 minutes of a doctor's time. Assume that, as before, 90 percent of all patients are Simple Prescriptions: Assume, too, that the triage nurse is 100 percent accurate in making classificay tions. Under the proposed plan, how long, on aver age, will a patient spend in the ER? On average, how long will a PotentialAdmispond in de ER2. On aver age, how many patients will be in the LR2 Assume the process to be stable that is, average inflow rate equalt average outflow rate. Refer to Exercise 35. Once the triage system is put in place, it performs quite close to expectations. All data conform to planners' expectations except for one set the classifications made by the nurse practi- tioner. Assume that the triage nurse has been sending 91 percent of all patients to the Simple Prescription area when in fact only 90 percent should have been so classified. The remaining 1 percent is discovered when transferred to the emergency area by a doctor. Assume all other information from Exercise 3.5 to be valid. On average, how long does a patient spend in the ER? On average, how long does a Potential Admit spend in the ER? On average, how many patients are in the ER? Assume the process to be stable that is average inflow rate equals average outflow rate. preparing, Serve wine waite cellat and to prepare any other alcoholic bevet Finally, the assets the order to a w takes A minutes to take down the under and Svetve work to the kitchen semelier and water kitchen 18 m esto prepare the typical Det 6 minutes to the the kitchen and the wo ter des a cart egistered and 34 octor. There is 2 minutes per e prescriptions is 5 minutes al, average time does a patient many patients average, how R? Assume the ge inflow rate ed for the ER proposed triage tered as before Sa nurse practi e Prescriptions escriptions will care. Potential area Planners will takes min patients will be as to be seen by takes an aver- riage nurse is te per patient is area to have, eer. As before take 5 minutes pates that on only patient patient's turn of a doctor's of all patients that the triage ing classificar Toner average how Onayet 32 Assume the w rate equals Chapter 3 - Process Flow Measures 77 Orange Juice Inc produces and markets fruit During the orange Harvest season, trucks being Orange from the fields to the processive plant during a workday that run from 7AM to days approximately 10.000 kalem On peak trucked in p hur Trek Gump their contents in are hot with a storage capacity of 6000 wale grans. When the bin is full naming trucks must wait until it has sufficient available space A Conveyor moves oranges from the bins to the process plant The plant is configured to deal with an average har vesting day, and maximum throuyat (w rate is 8.000 kilogramser hour Assuming that orange anive controly time, construct an inventory buildup diagram for range Juice Inc In order to process all the range delivered during the day, how long must the plant operate on peak day? (Assume te that because Orange Juice Inc makes o tos orange Assuming finally, that eachtruckaroles about 1000 KILOM EGA point de in the day muud S t adin in l e bun? What is the maximum amount of time that a truck must wait? How long WALLS now wait, on VCRC Among trucks that do Song is the average 3. 8 asper Valley Motors OVM) is a family run auto deal- ership selling both new and used verdles. In an aver b ieles New age month. JVM sells a o vendos representerendent of sales and severe cles represent 40 percent of sales. Max has recently taken over the business from his father his father always emphasized the importance of carefully man aging the dealership's Inventory Inventory timandos was a significant expense for JM Max's father con sequently taught him to keep iventory turns as high as possible a. Examining the dealership's paformance over recent year Mix discovered that JM had been tumingits inventory (including both new and used chicks at a rate of time per year. What is M average inventory (including both new and ed vehicle b. Drilling down into the number Max has deter m ed that the dealership's new and used as appear to betave differently. He has tions All data ccept for oneStep by Step Solution
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