Time lag effects - operations function, Operation Management

Assignment Help:

Time Lag Effects - Operations Function

Feedback control in complex systems can bring its own problems, due to time lag between measuring the output deviation and realising the effects of the corrective adjustments. A well-known illustration of this phenomenon was presented by Jay W Forrester in his book, Industrial Dynamics. He had been consulted by a white goods manufacturing concern which had been experiencing wildly fluctuating production levels over a period of years; despite the best efforts of the company's management they had been unable to keep production output in reasonable balance with customer demand. Forrester and his team studied the operations of the company's distribution chain (shown in simplified form in the figure) and formulated a computer simulation model of the factory - warehouse - distributor - retailers.

1355_Time Lag Effects – Operations Function.png

The figure below (adapted from Forrester, 1965) shows the results obtained when a 10 per cent step-increase in demand at the retail outlets was introduced. This chart is necessarily 'cluttered', to show how the various order, inventory and production levels changed in response to the initial increase in sales.

1964_Time Lag Effects – Operations Function 1.png

For our purposes it will be sufficient if you locate the two lines labeled 'Retail sales' and 'Factory production output'. It was found that, because of a series of time-lags in the chain, the feedback signal was greatly amplified by the time it reached the factory, resulting in over-reaction. Note that the production level climbs by 45 per cent, creating an excessive build up of inventories. In response the production level falls to 3 per cent less than the original level, and so on. It takes about 18 months for the fluctuations to be damped out.


Related Discussions:- Time lag effects - operations function

Explain analyze and evaluate the issues identified, Google's strategy 2010:...

Google's strategy 2010: identify the issues management needs to address. Analyze and evaluate the issues identified based on the information provided in the case. Recommend a set o

Developing an layout, What is the difference in strategy in developing an i...

What is the difference in strategy in developing an initial layout for a new facility as comparedn to the strategy in improving the layout of an existing facility?

Explain what are the pros and cons of the control system, What kind of cont...

What kind of control systems are being used to measure the performance of hospitals and their different kinds of employees such as doctors and nurses? What are the pros and cons

Explain what is the project duration, The following is a table of activitie...

The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede: Activity Duration (weeks) Precedes

Define the steps included in collective bargaining process, Define all the ...

Define all the steps included in collective bargaining process. The steps included in collective bargaining process are:- (i) Putting up before the management, through th

Why might a probabilistic estimate, Why might a probabilistic estimate of t...

Why might a probabilistic estimate of the project completion time base solely on the variance of the critical path be misleading? Under what circumstances would it be acceptable?

Describe fertilizer that promised a 50% increase in yield, Felicien grows m...

Felicien grows mirlitons (that's Cajun for Chayote squash) in his 100 by 100 foot garden. He then sells the crop at the local farmers' market. Two summers ago, he was able to produ

Explain companies choose not to tie resources to their job, Some companies ...

Some companies choose not to tie resources to their projects. In what ways does this benefit a project? In what ways does this hinder a project?

Describe the concepts of empowerment, Explain the concepts of empowerment, ...

Explain the concepts of empowerment, self-managed teams, and cross-functional teams, and develop an essay that argues for their inclusion in either a tall or flat organizational st

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd