ASHRIDGE Organisation charts as organisation models By Andrew Campbell The typic

Question

ASHRIDGE Organisation charts as organisation models By Andrew Campbell The typical organisation chart does not tell you much about how the organisation is supposed to work: the organisation model. Normally, charts are drawn in layers: all the people reporting in to a boss are on the same level, and so on down the structure. Because there are multiple layers, the charts often extend to multiple pages. If an attempt is made to distinguish between people reporting in to the same boss, it is normally done using pay grades or titles. So that those with an SVP title are higher up the chart than those with a VP title and so on. This simple format is partly a result of the simplicity of the computer programs used to construct the charts. But, it is also a result of not knowing a better way. A good organisation chart can achieve the following: explain who reports to whom communicate information about the operating model of the organisation and define the relationships that should exist between people who report to the same boss and with others who do not report to the same boss. - - The operating work The first step in drawing a richer organization chart is to define the operating work; and to decide how the operating work is divided up into functions or departments or divisions. The operating work consists of those activities that are directly involved in creating or delivering value to the customers of the organisation: typically activities like product development, supply chain, operations, service and sales.

Explanation / Answer

Suppose that a system consisting of two identical machines and one operator is used to manufacture a product. The product has a processing time of 7 minutes on the machines. The operator has a load time of 1 minutes and an unload time of 3 minutes on each machine (the travel time is negligible). Assume that the operator always follows the same cycle: Load M1, Start M1, Load M2, Start M2, Unload M1, Load M1, Start M1, Unload M2, Load M2, Start M2,…

It is possible to find the production cycle time and the utilizations of the resources by formulating a linear programming problem as follows: consider the following decision variables: o1Li: end time of loading machine 1 in cycle i, o2Li: end time of loading machine 2 in cycle i, o1ui: end time of unloading machine 1 in cycle i, o2ui: end time of unloading machine 2 in cycle i, m1Pi: end time of processing in machine 1 in cycle i, m2Pi: end time of processing machine 2 in cycle i.

We can then relate the decision variables by the precedence relations of activities and the required time. We have for example the following timing constraints for cycle i and i-1:

o1Li >= u1ui-1 + 1

u1ui-1 >= m1pi-1 + 3

m1pi-1 >= o1Li-1 + 7

The first constraint above says that in cycle i, the end of the loading time of machine

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