On 1/16/06, Sean Stickle <[EMAIL PROTECTED]> wrote:
> Unless you are going to pay your developers less if they get things done
> quicker, then training them quicker isn't going to save you any money.

If they get stuff done quicker you are getting a result for less
money. If you keep them busy with projects, you will get more projects
done per year therefore the cost-per-project is lower. Throughput has
value.

> Automakers spent money to install robots to
> increase efficiency, but if the robots weren't on the system constraint,
> they actually cost money, and there was no savings at all (except
> fictional cost accounting savings).

Actually there were lots of reasons for replacing low-skill manual
workers with automated systems. Efficiency was a factor (but mostly
because you could then run a factory 24x7 with far fewer staff).
Consistency was a big factor (probably a bigger factor).

> Raw materials -> A(10) -> B(5) -> C(7) -> Market
>
> Where A can process 10 units of output per hour, B can do 5 per hour,
> and C can do 7 per hour.

Efficiency of scale. Double your raw materials, double the A process,
quadruple the B process and triple the C process.

2 x raw -> 2 x A(2x10=20) -> 4 x B(4x5=20) -> 3 x C(3x7=21) -> 2 x market

Now all of your processes are matched and you can maintain optimum
pipeline efficiency.

The real throughput of your initial system was 5 per hour (since B was
the bottleneck). Just doubling up B would have gotten you to 7 per
hour (not much of an improvement).

Note: If the cost of 2A + 4B + 3C is too high to sustain 20 units/hour
then your original model (producing only 5/hour) would also have had
too high a cost to be sustainable.

> This is standard operations management, which is a good field of study
> for programmers, actually.

Not really. Programmers are not factory assembly workers.
--
Sean A Corfield -- http://corfield.org/
Got frameworks?

"If you're not annoying somebody, you're not really alive."
-- Margaret Atwood


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