Discover how to find the optimal batch size for a process given similar information.
- [Instructor] In the previous movie,…I described how to calculate the capacity of a process…given batch size, set up time, and other constraints.…In this movie, I'll show you how to find…the optimal batch size for a process,…given similar information.…My sample file is the optimal batch size Excel workbook…and you can find that in the chapter three folder…of your exercise files collection.…Our goal for this movie is to find the optimal batch size…to produce a certain amount of items…that matches our demand.…
So for example, here we see…that we have our demand per hour which is 250.…Then, for the process we'll assume…that we have a set up time…of a quarter of an hour or 15 minutes.…The capacity per hour is 350 units.…And what we don't know is our batch size…or our flow rate.…To calculate the flow rate we need to use the formula…that is displayed starting in cell C7.…That's where the flow rate is the batch size…divided by the following quantity,…setup time plus batch size divided by capacity.…
So in other words, we are calculating…
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- Drawing process flow diagrams
- Calculating process capacity
- Identifying bottlenecks
- Determining cycle time and idle time
- Calculating labor
- Calculating utilization
- Analyzing batch processes
- Calculating optimal order quantities