Example on Capacity, Throughput, Cycle Time, and Takt Time
Learn about capacity, cycle time, throughput, and takt time through an example involving a process with two stations. Calculate the process capacity, cycle time, utilization, and takt time to understand operational efficiency.
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An Example on Capacity, Throughput, Cycle Time, and Takt Time
14 mins. The Lecture Basic Inventory Models, Ardavan Asef-Vaziri 2
Capacity of a Process Two stations. It takes 6 mins to complete an operation in Sta-1 (or resource pool 1), and 5 mins to complete an operation in Sta-2. There are 3 machines (or 3 resource units) in sta-1 and 2 machines in Sta-2. a) Compute the capacity of this process. Each machine in station 1 can produce 60/6 =10 products, and there are 3 machines RpSta-1= 3(10)=30 We could have also said it is RpSta-1 = c/Tp = 3/6 per min., and then multiply it by 60 RpSta-1 = c/Tp = (3/6)(60)= 30 RpSta-2 = 60/5= 12 products, and there are 2 machines RpSta-2= 2(12)=24 We could have also said it is RpSta-2 = c/Tp = 2/5 per min., and then multiply it by 60 RpSta-2 = c/Tp = (2/5)(60)= 24 Capacity if the process = min(30,24)=24 per hour Sta-2 is bottleneck Basic Inventory Models, Ardavan Asef-Vaziri 3
Cycle Time & Capacity b) Compute the cycle time in this process. The Capacity of the process, as we computed is 24. CT is our capability in producing two consecutive product. The time that we need to send the next product out. Rp = 24 products per hour. We produce 24 product in 60 minutes CT = 60/24 = 2.5 minutes. We could have also said that CT=1/Rp CT=1/24 hour 1/24 hour is 60(1/24) = 2.5 We could have also said Rp = 24/60 = 0.4 per minute CT=1/Rp =1/0.4 = 2.5 Basic Inventory Models, Ardavan Asef-Vaziri 4
Utilization, Throughput & Takt Time c) Suppose the utilization of this process is 75% compute the throughput. The Capacity of the process, as we computed is 24. U=R/Rp R=U*Rp R=0.75(24)= 18 d) Compute the utilization of the least utilized station. That is station 1 with Capacity of 30 U=18/30= 0.6 e) Compute the takt time 18 products in 60 minutes TT= 60/18= 3.33 minutes R= 18, CT=2.5 Rp=30, TT=3.33 Takt Time is the time we have to produce a product. It is defined by throughput not by capacity. It is the time the market expects us to receive the next product. Basic Inventory Models, Ardavan Asef-Vaziri 5
