CHAPTER 4: FLOW TIME ANALYSIS

Activity Activity
F1 A B

4.4
Process 15 10
a. min min
Loan
And
Officer
Separate

10 Activity 15
min F2 min
C

20
min

b. The flow time is 50 minutes. The critical path is the one of F1 (process and separate,
Activity A, Activity B, Loan Officer).
c. The new flow time of Activity A will be 0.5 * 15 + 0.5 * 30 = 22.5. Activity A is on the
critical path, and so the flow time of the process will be 57.5, an increase of 7.5.
CHAPTER 5: FLOW RATE AND CAPACITY ANALYSIS

5.3
a. The capacity is 6 customers per hour as illustrated below:

Resource Pool Lulu Stylist

Pool Size 1 3
Unit load (min per customer) 3 30
Effective unit capacity (per min) 1/3 1/30
Effective pool capacity (per min) 1/3 1/10
Effective pool capacity (per hour) 20 6

b. The capacity will increase to 7.2 customers per hour as illustrated below:

Resource Pool Lulu Stylist

Pool Size 1 3
Unit load (min per customer) 8 25
Effective unit capacity (per min) 1/8 1/25
Effective pool capacity (per min) 1/8 3/25
Effective pool capacity (per hour) 7.5 7.2

5.4

a. A is more profitable : The capacity of A and B respectively are 900/10= 90 and 900/20= 45
units per day. The margin capacity of the two products are 90*20 =$1800 and 45*35 = $1575
per day respectively.
b. The unit load of the mix is 60%*10 +40%*20 = 14 minutes per unit. The capacity is 900/14 =
64.3 units per day.
c. The margin per unit is 60%*20+40%*35= $26 per unit. The financial capacity is 64.3*26 =
$1671.42 per day.