Product Mix
Impact of Variability on Utilization Rate
• Consider a process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
100%? 50% ? 25%? 0%
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Impact of Variability on Utilization Rate
• Consider a process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
Impact of Variability on Utilization Rate
• Consider a process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
Step 1 is “blocked” since it can not pass on its output to the next step
Impact of Variability on Utilization Rate
• Consider a process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
Step 2 is “starved”, often times idling, Since step 1 is slow to feed step 2
Impact of Variability on Utilization Rate
• A process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
Although there is a 50% chance that processing at any step is fast, there is only 25% of the time that the overall output rate is fast.
Impact of Variability on Utilization Rate
• A process with two sequential steps, step 1 (fast) and step 2 (slow). What ‘s the chance that the process is fast ?
• Although there is a 50% chance that processing at any step is fast, there is only 25% of the time that the overall output rate is fast.
Impact of Variability on Utilization Rate
There are only two steps in this case. Imagine what will happen when there are there steps sequentially? What’s the chance the process is fast?
Impact of Variability on Utilization Rate
There are only two steps in this case. Imagine what will happen when there are four steps sequentially? What’s the chance?
Impact of Variability on Utilization Rate
There are only two steps in this case. Imagine what will happen when there are four steps sequentially? What’s the chance?
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