a)Consider a non-profit organization, where grant proposals are written by the b

Question

a)Consider a non-profit organization, where grant proposals are written by the business development director. The director, who devotes 100% of his time to the proposals, completes an average of 2.3 per month.   On average, 4 RFP’s (requests for proposals) are waiting to be started. What is the average flow time for proposals?

b) Consider an oil change facility. The daily throughput averages 75 cars and the facility is opened for 10 hours per day. Three bays operate simultaneously and the average service time per car at each bay is 18 minutes. What is the utilization of the bays during a typical day?

Need the solution for both the parts

Explanation / Answer

(a)

Flow Rate = 2.3 proposals per month

WIP = 4 RFPs

Use Little's Law i.e. WIP = Flow Rate x Flow Time

i.e. Flow Time = WIP / Flow Rate = 4 / 2.3 = 1.739 month

(b)

Arrival Rate (L) = 75 cars per 10 hours = 7.5 cars per hour

Service rate per bay (m) = 1 in 18 min = 60/18 per hour

Number of bays (n) = 3

Utilization (U) = L / (n x m) = 7.5 / (3 x 60 / 18) = 75%

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