Week 2 — Process strategy and capacity

Thursday, 8 October 2026 · Heizer Ch. 7 + S7

ChapterHeizer Ch. 7 — Process strategy; S7 Capacity and constraint management · eLibrary (university network or VPN)

Morning testReadiness Test 01 · Ch. 1 (alone, then as a team)

Bonus sheetmoved to Week 3 (not written on 8 Oct) · counts toward Test 2

Group projectkick-off at 13:00 · team of 4–5 signed up on ILIAS · description

Times09:00–12:00 · 13:00–15:30

A process can only go as fast as its slowest step, and that step sets the output for everyone.

Learning goals

  • Find the bottleneck — capacity of every step, the lowest one wins
  • Calculate capacity — design, effective, actual; utilization and efficiency
  • Tell two times apart — throughput time vs. bottleneck time
  • Choose a process — volume vs. variety; crossover of two processes
  • Think in chains — the weakest firm sets the deliveries
  • Model and clean data with Python — a line dashboard; messy oven logs

Before Thursday

  • Team: choose a team of 4–5 and sign up on ILIAS. The same team writes the team tests and does the group project.
  • Test 1 (09:15): Heizer Ch. 1 only. Calculate the Chapter 1 exercises (single-factor, multifactor, change in %, with the unit next to every result; practise with the Week 1 exercises); explain the key concepts in your own words; apply them to Frito-Lay and Hard Rock Cafe. Summary: Week 1, key content.
  • Read Ch. 7 and Supplement 7.

The two firms of Test 1, in five seconds each:

Hard Rock Cafe · the dining room guests see, the kitchen they don't · AI-generated video (LTX-2.5)
Frito-Lay · frying, seasoning, bagging, boxing: every bag the same steps · AI-generated video (LTX-2.5)

Bring

Laptop (Google account) · calculator · pen · phone

Thursday

Morning · 09:00–12:00Readiness Test 01 · role play: six departments · Frito-Lay and Arnold Palmer Hospital as processes · fixed vs. variable process flows

Afternoon · 13:00–15:30The bottleneck in the line widget · case: Backhaus Kaya · Colab: which process strategy is cheapest at which volume? · bonus sheet moved to Week 3

  • Alone, 15 min: booklet with your code name, X in the boxes of the answer sheet; calculator yes, phones and books away
  • Break, 10 min, then as a team, 30 min: the same items, one team answer per item
  • Rules: Assessment
  • Your team gets five character cards: what you like, what you dislike, your red line, what you can trade, your number
  • Situation: a bike-sharing operator wants 2,000 bikes in four weeks; the plan is full
  • Debrief: which number did each department defend? Who paid?
  • Frito-Lay: product focus · high volume, low variety · a fixed process flow: every bag passes the same steps (clip)
  • Arnold Palmer Hospital: process focus · high variety, customized · a variable process flow: every patient takes a different path
  • Why the Mensa queue reaches the door while the cashier waits
  • Four friends, 24 pizzas, one oven
  • Open the line widget → (works on a phone)
  • Design, effective and actual capacity
Note13:25 · Case: Backhaus Kaya
Teaser · 5 s · Aylin Kaya, night shift — can her oven carry 1,800 more rolls a night? · AI-generated video (LTX-2.5)
  • A craft bakery, a supermarket contract for 1,800 extra rolls a night, an answer due on Monday
  • Read alone, solve in your team, recommend in three sentences
  • Case handed out in class
  • Open the notebook in Colab → then File → Save a copy in Drive (Tools).
  • Total cost = fixed cost + variable cost × volume · two lines cross at the crossover volume
  • Enter Aylin’s numbers from the case · quick teams: repetitive focus and mass customization
  • Not written on 8 October: you write the Week 2 bonus sheet in class on Thursday, 15 October; it counts toward Test 2
  • Rules: Assessment

For Week 3 or at home

Downloads

After class: the role-play cards, the case, the solved notebooks.

Optional reading

  • Hopp, W. J., & Spearman, M. S. (2021). The lenses of lean: Visioning the science and practice of efficiency. Journal of Operations Management, 67(5), 610–626. https://doi.org/10.1002/joom.1115
  • Holweg, M., Davies, J., De Meyer, A., Lawson, B., & Schmenner, R. W. (2018). Process theory: The principles of operations management. Oxford University Press.

Key content

Download as text · quiz-me prompt · exercises

Problem

At 12:15 the Mensa queue reaches the door, yet the cashier waits half the time. The main-dish counter serves 120 guests an hour, the cashier 240, and 180 arrive: the queue grows by 60 guests an hour in front of the counter. A second cashier changes nothing.

Warm-up (role play): six departments of a bike company, each defending its own single-factor number, face a rush order of 2,000 bikes in four weeks. That is 500 bikes a week: whose capacity decides whether it fits?

Sentence of the week

A process can only go as fast as its slowest step, and that step sets the output for everyone.

Formulas in words

Measure In words Unit, e.g.
Capacity of a step 60 min ÷ minutes per unit × parallel workers or machines pizzas per hour
Batch machine units per load × 60 ÷ minutes per load rolls per hour
Bottleneck the step with the lowest capacity —
Line capacity capacity of the bottleneck pizzas per hour
Bottleneck time minutes per unit at the bottleneck min per pizza
Throughput time sum of all step times of one unit, no waiting min
Utilization actual output ÷ design capacity %
Efficiency actual output ÷ effective capacity %
Break-even volume fixed cost ÷ (price − variable cost per unit) units per year
Crossover volume difference in fixed cost ÷ difference in variable cost units per year
  • Design capacity = the most in ideal conditions; effective capacity = with planned losses (set-ups, cleaning, breaks, product mix); actual output = what was really made
  • People and machines: always round up
  • Heizer et al. (2023), Ch. 7 Process strategy and Supplement 7 Capacity and constraint management

Student life

  • Party pizza line: dough 3 min, toppings 4 min, oven 10 min for 2 pizzas, cut 2 min → capacities 20 / 15 / 12 / 30 per hour → the oven is the bottleneck, 12 pizzas per hour. One pizza needs 19 min from dough to plate; 24 pizzas take 19 + 23 × 5 = 134 min
  • A second topper changes nothing. A second oven makes 24 per hour possible → the toppings become the bottleneck (15 per hour): the bottleneck moves
  • Moving day: the narrow staircase, not the size of the van

Factory

  • Every step of a line can be busy or idle; only the bottleneck decides the output. More people at a non-bottleneck step add cost, not output
  • Process strategies by volume and variety: process focus (low volume, high variety: job shop, craft bakery), repetitive focus (modules on a line: sandwich or roll line), product focus (high volume, low variety: continuous flow), mass customization (high volume and high variety)
  • Crossover chart: a process with high fixed and low variable cost wins above the crossover volume

Supply chain

A chain delivers only what its weakest firm delivers. Frames 400, assembly 500, distribution 600 bikes per week → 400 bikes per week. Expanding a firm that is not the bottleneck adds cost, not deliveries.

Typical errors

  • Adding the capacities of the steps instead of taking the minimum
  • Utilization and efficiency swapped: utilization divides by design, efficiency by effective capacity
  • Adding people at a step that is not the bottleneck
  • Forgetting parallel machines or the batch size of the oven
  • Throughput time (one unit, all steps) confused with bottleneck time (time between two finished units)