Evaluating the shop-wide performance effect of pooling synergy with analytical models

This paper explores some simple queuing-based spreadsheet tools that provide information to managers interested in forming cells. These interim models can help the practicing manager build powerful insights. Specifically, we demonstrate that work in process inventory (WIP) requirements as well as cycle time performance can be easily obtained for individual cells as well as relatively complicated shop arrangements. To illustrate the usefulness of this spreadsheet approach, this paper contrasts a spectrum of shops and documents the performance effect due to a loss of pooling synergy.