Exercise: Analyze production at your factory Definitions - Process = Activities (tasks) and Resources (workers, machines, inventory, etc) - Demand = Activities (generated by orders/input) - Supply = Resources - Capacity - Resource Capacity: Max amount the resource can produce in a given time unit (ex. 10 cars per day) - Process Capacity: MIN(capacity of resource 1, capacity of 2,, capacity of resource n ) - Can also be measured in units of time (ex. Machine running 8 hours/day) - Bottleneck = Resource with smallest capacity (ex. Number of customers (if service business) or products that pass through in a given unit of time) - Utilization is flow rate divided by capacity (always WS2 -> WS3. Example: WS1 makes the frame, WS2 screws it together and stains it, WS3 puts on the padding. The "base case" factory used to look like this: However, your factory has expanded over the years, and your boss hands you a list of the new factory layout (workstations, workers, processing time) as follows: To help you get started, I've created a flow diagram for you below. Use it to answer the questions below on the provided Excel answer sheet (show your formulas where indicated!). : Questions: - A. What is the bottleneck? - B. What is the process capacity? - C. What is the flow rate if demand is eight units per hour? - D. What is the utilization of each resource if demand is eight units per hour? Use