Dannellie Marie I.

Carpio
 Process - Any set of activities performed
by an organization that takes inputs and
transforms them into outputs ideally of
greater value

Mechanical
Slot Machine
Cycle time - The average time between
completions of successive units in a
process.

Utilization – The ratio of the time that a

resource is actually activated relative to
the time it is available for use.
Electronic
Slot Machine
 Mechanical
 Cycle time – 15 seconds
 $240 per hour ($4/min. x 60 mins)
 $228 – customer ($240 x 95%)
 $12 – Casino ($240 x 5%)
 Utilization - 12 out of 24 hours
 $12/day x 24 x.05 = $144
 Revenue : $144 per day
Electronic
 Cycle time – 10 seconds
 $360 per hour ($6/min. x 60 mins)
 $342 – customer ($360 x 95%)
 $18 – Casino ($240 x 5%)
 Utilization 12 out of 24 hours
 $18/day x 24 x.05 = $216
 Revenue : $216 per day
Tasks or operation

Decision points

Storage areas or queues (waiting line)

Flow of materials or customers

ACTIVITIES
PLAYER

Insert silver Win Lose No

Pull arm on Play
dollar into or Quit
slot machine again
slot machine lose
Win

Activate Pay
Payout winnings
INTERNAL SLOT MACHINE ACTIVITIES

Is Payout
No Move coin to
payout bucket
payout
bucket
bucket
full?

Yes
Winnings
Move coin to bucket
payout
bucket Las Vegas slot machine
 Single-stage process

Stage 1

 Multi-stage process

Stage 1 Stage 2 Stage 3

 Multi-stage process with buffer

Buffer
Stage 1 Stage 2
Buffering – A storage area
between stages where the
output of a stage is placed
prior to being used in a
downstream stage.
Starving – the activities in a
stage must stop because
there is no work.
Blocking – The activities in
the stage must stop
because there is no place
to deposit the item just
completed.
Bottleneck - A resource
that limits the capacity or
maximum output of the
process.
 Only activated in response to an actual order.
 Both work-in-process and finished goods inventory kept to a minimum.

Customer
Order

Make Deliver

 Process activated to meet expected or forecast demand.

 Customer orders are served from target stocking level.
Customer

Finished
Goods
Make Deliver

 Combines the features of both make-to-order and make-to-stock.

 Productivity – The ratio of output to input.
 Efficiency – A ratio of the actual output of a process relative to some standard
 Run time – The time required to produce a batch of parts.
 Setup time – time required to prepare a machine to make a particular item.
 Operation time – the sum of the setup time and run time for a batch of parts that are run
on a machine.
 Throughput time – The average time that it takes a unit to move through an entire process.
 Throughput rate – output rate that the process is expected to produce over a period of
time.
 Little’s Law – States a mathematical relationship between throughput rate, throughput
time, and the amount of work-in-process in inventory.
1. Perform activities in parallel
2. Change the sequence of activities
3. Reduce interruptions