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Library | Operations & Supply Chain

Factory Physics

Explains the quantitative relationships between variability, utilization, WIP, cycle time and throughput.

Key takeaways

  1. High utilization inflates queue time
  2. Variability creates buffers
  3. WIP and throughput determine cycle time

How to apply it in your business

  1. Calculate cycle-time behavior from WIP and throughput
  2. Measure variability at a bottleneck
  3. Test capacity or WIP changes before capital spending

About the authors

Hopp and Spearman are operations research scholars known for manufacturing systems analysis.

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