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2

Process Type of Cases

I'm struggling with the cases like "optimizing the bottlenecks, increasing the outputs" with a given process. Especially cant figure how to structure these type of cases. .Can you plz help me, any ideas?

I'm struggling with the cases like "optimizing the bottlenecks, increasing the outputs" with a given process. Especially cant figure how to structure these type of cases. .Can you plz help me, any ideas?

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Best Answer

Hello!

One of the ways is to consider throughput as Equipment availability (hours a year) * Actual production rate (units / hours). Then you split availability into calendar time and time losses. You split losses into categories and analyse priority ones. Same for productivity: you look for max productivity (e.g. best shifts, or nameplate capacity…) and its losses and address them.

Hope it helps.

Aleksis

Hello!

One of the ways is to consider throughput as Equipment availability (hours a year) * Actual production rate (units / hours). Then you split availability into calendar time and time losses. You split losses into categories and analyse priority ones. Same for productivity: you look for max productivity (e.g. best shifts, or nameplate capacity…) and its losses and address them.

Hope it helps.

Aleksis

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Hi,

There are several types of operational cases that you may have:

1) Operational math problems. (e.g. Should we increase the speed of the elevator or just buy a second one? How should we reduce the queues? How should we increase the output of a factory?).

Structuring:

  • Usually, you have to look at the process (value chain). Even the most complicated systems have the inflows and outflows

The key concepts that you have to learn:

  • Capacity and utilization (both machine and people)
  • Cycle time, Throughput time, Little's Law
  • How the does lowest cycle time influence the production? (Lead time = cycle time of the slowest process)
  • How can we mitigate the bottlenecks with low cycle time? (Buffer, Parallel process, speeding up)

2) Cost cutting cases

Structuring:

  • What is the cost composition and what are the biggest costs
  • Benchmarking of the biggest costs to find the improvement potential
  • Process improvements to meet the benchmarks
  • Costs and benefits of the proposed initiatives

The key concepts that you have to learn:

  • Internal / external benchmarking
  • Idle time
  • Core processes (usually are optimized) and the supporting processes (usually are cut)
  • Math structures (Frequency of operations * time per operation)
  • Other useful structures (e.g. people - process - technology)

Feel free to reach me for further help with these cases.

Best!

Hi,

There are several types of operational cases that you may have:

1) Operational math problems. (e.g. Should we increase the speed of the elevator or just buy a second one? How should we reduce the queues? How should we increase the output of a factory?).

Structuring:

  • Usually, you have to look at the process (value chain). Even the most complicated systems have the inflows and outflows

The key concepts that you have to learn:

  • Capacity and utilization (both machine and people)
  • Cycle time, Throughput time, Little's Law
  • How the does lowest cycle time influence the production? (Lead time = cycle time of the slowest process)
  • How can we mitigate the bottlenecks with low cycle time? (Buffer, Parallel process, speeding up)

2) Cost cutting cases

Structuring:

  • What is the cost composition and what are the biggest costs
  • Benchmarking of the biggest costs to find the improvement potential
  • Process improvements to meet the benchmarks
  • Costs and benefits of the proposed initiatives

The key concepts that you have to learn:

  • Internal / external benchmarking
  • Idle time
  • Core processes (usually are optimized) and the supporting processes (usually are cut)
  • Math structures (Frequency of operations * time per operation)
  • Other useful structures (e.g. people - process - technology)

Feel free to reach me for further help with these cases.

Best!

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[PLEASE NOTE: This is a technically difficult case and should only be completed by those coming in as a Technology specialist, i.e. recruiting for McKinsey Digital, BCG Platinion, etc.] Our client is a multinational oil and gas company. While they are vertically integrated and have upstream, midstr ... Open whole case