{"id":9277,"date":"2011-09-29T05:53:06","date_gmt":"2011-09-29T11:53:06","guid":{"rendered":"https:\/\/staging.opexlearning.com\/resources\/?p=9277"},"modified":"2014-10-04T06:40:32","modified_gmt":"2014-10-04T11:40:32","slug":"queueing-theory-application-in-service-manufacturing","status":"publish","type":"post","link":"https:\/\/staging.opexlearning.com\/resources\/queueing-theory-application-in-service-manufacturing\/9277\/","title":{"rendered":"Queueing Theory Business Application in Service and Manufacturing"},"content":{"rendered":"<div class=\"a296a24fa2fc69ef5487857f02f111e8\" data-index=\"9\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- Single Post readerboard -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8207522353004717\"\r\n     data-ad-slot=\"1144967431\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Queueing Theory, if used appropriately, can describe the a system and its dynamics accurately in order to pave the way for eventually improving the system. Let me illustrate.<\/p>\n<p>PS: Go here if you&#8217;re interested in other articles on <a title=\"waiting line management, resource page\" href=\"https:\/\/staging.opexlearning.com\/resources\/queueing-theory\/\">Queueing Theory<\/a>.<\/p>\n<p>Let&#8217;s assume the following scenario.<\/p>\n<p>Widgets are made to order in an assembly line that consists of three steps, each performed by a single worker. So, there are a total of 3 workers on the assembly line. Here are a few facts and data for this process:<\/p>\n<ul>\n<li>Wait-time between process steps is caused by buildup of work-in-process inventory.<\/li>\n<li>Wait-time in front of Step 1 represents the wait-time from an arrival of an order to the start of production.<\/li>\n<li>After step 3, the product is delivered immediately to the customer.<\/li>\n<li>On average, orders for widgets arrive every 15 minutes.<\/li>\n<li>We define <em>Capacity<\/em> is its maximum sustainable throughput:<\/li>\n<\/ul>\n<blockquote><p>The # of resources simultaneously performing the activity \/ The time duration of the activity<\/p><\/blockquote>\n<p>Below is the data:<\/p>\n<div align=\"center\">\n<table border=\"1\" align=\"center\">\n<caption align=\"TOP\">Widget Factory<\/caption>\n<tbody>\n<tr>\n<td style=\"text-align: center;\">Step<\/td>\n<td style=\"text-align: center;\">Average Wait Time<\/td>\n<td style=\"text-align: center;\">Average Service Time<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">1<\/td>\n<td style=\"text-align: center;\">28<\/td>\n<td style=\"text-align: center;\">9<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">2<\/td>\n<td style=\"text-align: center;\">20<\/td>\n<td style=\"text-align: center;\">8<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\">3<\/td>\n<td style=\"text-align: center;\">30<\/td>\n<td style=\"text-align: center;\">10<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>So, given the scenario above,<\/p>\n<ul>\n<li>What is the average number of jobs in the system, including orders waiting to be processing PLUS work-in-process?<\/li>\n<\/ul>\n<p>To answer the above question, we need the following:<\/p>\n<ul>\n<li>Cycle Time: 28+9+20+8+30+10 = 105 Minutes<\/li>\n<li>Average Throughput Rate = 1\/15<\/li>\n<\/ul>\n<p>So, the average number of jobs in the system including orders waiting and current work-in-process is:<\/p>\n<ul>\n<li>1\/15*(105) = 7 Widgets<\/li>\n<\/ul>\n<h2>Application<\/h2>\n<p>This simple example shows the power of Queueing Theory. I purposely chose the generic term &#8220;widgets&#8221; because you can substitute anything you want. For example, the process above can be done to answer the following questions:<\/p>\n<ul>\n<li>On average, how many patients are in the system, including those in the waiting room that haven&#8217;t been seen yet and those currently being seen by a doctor?<\/li>\n<li>On average, how many bags are in the airport carousel, including those that are enroute from the landed airplane as well as those currently on the carousel?<\/li>\n<li>On average, how many projects are there, including those that whose business case is still being developed and those projects currently in process?<\/li>\n<li>On average, how many custom bikes are being built including the bike orders that haven&#8217;t been started and those currently in process?<\/li>\n<\/ul>\n<p>As you can see, my example above answers a variety of business questions, that can shed greater light on resource constraints, strategic planning, where constraints are in the system, and many \u00a0more.<\/p>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Queueing Theory, if used appropriately, can describe the a system and its dynamics accurately in order to pave the way for eventually improving the system. Let me illustrate. PS: Go here if you&#8217;re interested in other articles on Queueing Theory. Let&#8217;s assume the following scenario. Widgets are made to order in an assembly line that [&hellip;]<\/p>\n","protected":false},"author":12327,"featured_media":9278,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[29],"tags":[641,643,642,640],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Queueing Theory Business Applications<\/title>\n<meta name=\"description\" content=\"How to apply queueing theory to practically solve business questions?\" \/>\n<meta name=\"robots\" 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