By Dilip Chhajed, Timothy J. Lowe

This can be the 1st ebook within the box that makes use of the ability of the elemental versions and ideas to supply scholars and executives with an "intuitive figuring out" of operations administration. The booklet touches on 9 primary types and rules, and descriptions the main insights at the back of each. the various very largest names within the administration technological know-how box have constructed and thoroughly written those chapters at the field’s easy versions.

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Additional resources for Building Intuition: Insights from Basic Operations Management Models and Principles (International Series in Operations Research & Management Science)

Example text

1 Each scenario occurs with probability and saves 8 h of overtime, relative to the 9 dedicated system with no cross-training. But we have another demand scenario to consider here. Suppose demand for product A is low and demand for product C is high, namely dA = 8, dB = 10, dC = 12 . Then, from inspection, we see that we can accommodate the surplus demand for C without overtime: Adam assembles 8 units of A and 2 units of B; Bob assembles 8 units of B and 2 units of C; and Carol assembles the remaining 10 units of C.

Thus, this is the best we can do. As another way to see the value from chaining, let’s compare the plan in Fig. 3 (two-person teams) with the plan in Fig. 7 (closed chain). In both instances we train each technician to be able to assemble a second product. In both instances, each product can be assembled by two technicians. These two systems require the same investment in cross-training, $60,000, and would seem to be very similar in structure. 3 Flexibility Principles 45 Expected Overtime (Hr/ Wk) em Sy st TF to A F Fr ed Ed ne ith to to E D ia n D C ar ol to to C B Bo b to am Ad D ed ic a te d sy st em Hours per Week 18 16 14 12 10 8 6 4 2 0 Configurations Fig.

4 permits Adam’s excess capacity to be applied indirectly to satisfy the excess demand for C. This is possible because Adam is linked to product C by way of Bob: since Adam can produce B, he can off load work from Bob, who can then use this capacity to help Carol with C. Furthermore, we observe that the incremental benefit from the second investment in cross-training (training Bob to assemble product C) is greater than the benefit for the initial investment (training Adam to assemble B). 89 h of overtime per week, for an annual savings of $3,700.

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