User Tools

Site Tools


what_is_wrong_with_100_utilization_thinking

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revisionPrevious revision
Next revisionBoth sides next revision
what_is_wrong_with_100_utilization_thinking [2016/07/03 13:38] – external edit 127.0.0.1what_is_wrong_with_100_utilization_thinking [2016/10/25 19:40] – [Understanding Real Cause and Effect of Utilization] hpsamios
Line 10: Line 10:
  
 {{ :cycle_time_vs_utilization_rates.jpg?500 |}} {{ :cycle_time_vs_utilization_rates.jpg?500 |}}
-I want you to have a look at the chart((Basis of chart results come from [[the_principles_of_product_development_flow_second_generation_lean_product_development_-_don_reinertsen|The Principles of Product Development Flow: Second Generation Lean Product Development - Don Reinertsen]] although it has been liberally interpreted to aid in understanding.)):+ 
 +I want you to have a look at the chart((this version of chart results come from [[the_principles_of_product_development_flow_second_generation_lean_product_development_-_don_reinertsen|The Principles of Product Development Flow: Second Generation Lean Product Development - Don Reinertsen]] which was originally from the Kingsman Formula, although it has been liberally interpreted to aid in understanding.)):
  
 This is what actually happens when you increase the utilization rate beyond a certain threshold. Basically it says that "as we approach 100% utilization the time it takes to process something becomes exponentially large." This is an application of "queuing theory". It turns out that every time you halve the amount of excess capacity, you double the time it takes to process something. So as you move from 60% to 80% utilization you double the time it takes to process something, and moving from 80% to 90% will double it again. This is what actually happens when you increase the utilization rate beyond a certain threshold. Basically it says that "as we approach 100% utilization the time it takes to process something becomes exponentially large." This is an application of "queuing theory". It turns out that every time you halve the amount of excess capacity, you double the time it takes to process something. So as you move from 60% to 80% utilization you double the time it takes to process something, and moving from 80% to 90% will double it again.
/home/hpsamios/hanssamios.com/dokuwiki/data/pages/what_is_wrong_with_100_utilization_thinking.txt · Last modified: 2020/06/04 11:19 by hans