Transcription of 1 Throughput, Work-in-Process, and Cycle Time
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1 Throughput, Work-in-Process, and Cycle Time
IEOR 4000: Production Managementpage 1 Professor Guillermo Gallego1 throughput , Work-in- process , and Cycle TimeThe purpose of this section is to obtain a basic understanding of the relationship that exists betweenthroughput, work-in process , and Cycle times. We will assume a production system where parts gothrough a specific routing. Thethroughput, denoted byTH, is the average output per unit time, ,number of widgets per hour. The inventory between the start and the end points of a productionsystem (not counting crib inventory or finished goods inventory) is calledwork-in- process (WIP).Thecycle time(CT) of a given production system is the average time parts spend as bottleneck raterbis the rate of the process center having least long-term capacity. The rawprocessing timeTois the sum of the long-run average processing times of each workstation in therouting. Critical WIP is defined to beWo= 1: Consider a production line with four stations, and assume that the processing time ateach workstation is two hours.
IEOR 4000: Production Management page 1 Professor Guillermo Gallego 1 Throughput, Work-in-Process, and Cycle Time The purpose of this section is to obtain a basic understanding of the relationship that exists between
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