MGMT 382 1st Edition Lecture 8Current LectureRun Time Parameters and Gantt Charts I. RT Parameters: matching supply with demanda. Continue with Subway examplei. Typically there are about 150 customers ordering subs during lunch hours (11:30-1pm) each customer’s orders 1 sub. 1. Demand rate= 150 subs/1.5 hours= 100 subs/hr--- how many customers will arrive in one hour?2. Bottleneck is 120 subs/hr so that’s greater than 100 subs/hr it isgood enough; but you wont want to produce more than what the customers want or else you are wasting resources3. Other situation: customer demand is 150 subs/hr—it is greater than 120 subs/hr, so you are no longer good enoughii. When the demand rate is greater than the process capacity you are not good enoughII. Customer demand sizea. Two types i. Supply-constraint—not enough capacity to meet demand – Flow rate will be equal process capacityii. Demand-constraint- more than what the customer needs—flow rate will equal demand rate III. Flow rate: throughput; smaller of process capacity and demand rate – how many products will flow through the entire process a. Actual Cycle time= 1/ flow rate—take demand side into account b. (in previous lectures: designed process cycle time, and designed stage cycle time—does not take the demand side into account)IV. Utilization: measures how busy each stage is a. Stage utilization= flow rate/stage capacity b. Process utilization= flow rate/process capacity – largest number among the utilization of each stage (bottleneck stage utilization)- busiest person i. Utilization can never be more than 100%V. Process Parametersa. Design Parameters: indicate what a process can achieve i. Capacity: maximum number of units the process can produce in a given time These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. Design Cycle Time= 1/process capacity b. Run Time Parameters: indicate the current process performance under a specific customer arrival/demand schedule i. These values change with demand1. Flow rate: throughput rate 2. Actual Cycle Time: 1/flow rate 3. Process Utilization: flow rate/process capacity 4. Average WIP: Average number of jobs in the process VI. Gantt Chart a. Draw: grid, left/vertical axis: resource name, horizontal: time b. Also need to know customer arrival