Transcript Document

IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
IES 303
Chapter 4: Process Analysis
Objectives:
• Introduce some practical tools used in designing and improving processes
Week 4
Dec 1, 2005
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Process Analysis
Understanding how process work is essential to
ensuring the competitiveness of a company
Example of 2 fast-food restaurants
If restaurant A can delivery a hamburger to customer
for $0.50 in direct costs and restaurant B costs $0.75,
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Objectives of Process Analysis
To be able to answer the following key questions:
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How many customers can the process handle
per hour?
How long will it take to serve a customer?
What change is needed in the process to expand
capacity?
How much does the process cost?
What part of process should be improved or
eliminated in order to reduce non-value added
cost?
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Measuring Process Performance
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Productivity
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Ratio of output to input
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Efficiency
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Ratio of actual output of a process relative to some standard
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Throughput Time
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Utilization
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
A Systematic Approach to
Process Analysis
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3
1
6
4
5
Figure 4.2
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Flowchart of the Sales Process for
a Consulting Company
Figure 4.3
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Flowchart of Nested Subprocess of Client
Agreement and Service Delivery Step
Figure 4.4
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Flowchart of the Process Showing Handoffs
Between Departments
Figure 4.5
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Flow Diagrams
Service visible to customer
Service not visible to customer
Repair
authorized
Customer
drops off
car
Mechanic
makes
diagnosis*
Discuss
needed
work with
customer*
Parts
available
Check
parts
availability†
Perform
work†
Parts not
available
Order
parts
Repair not authorized
Inspect/
test and
repair
Corrective
work
necessary
Customer
departs
with car
Collect
payment
Notify
customer
* = Points critical to the success of the service
† = Points at which failure is most often experienced
Repair complete
Perform
corrected
work
Figure 4.6
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Process Charts
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Recommended readings
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“Work measurement at United Parcel Service
(UPS)” from Operations Management for
Competitive Advantages, page 192
“Customer-Driven Service for McDonald’s – Selfordering kiosks and environment” from
Operations Management for Competitive
Advantages, page 153 - 154
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Case Exercise
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Select a process (service or manufacturing)
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Example of service system:
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MK restaurant (dine-in or delivery)
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SIIT registration process
Write a flow diagrams and/or process chart for
its operations
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Pareto
Charts
Figure 4.9
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Figure 4.10
IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Cause-and-Effect Diagram
Ex: Checker Board Airlines
Personnel
Equipment
Aircraft late to gate
Other
Mechanical failures
Passenger processing at gate
Late cabin cleaners
Unavailable cockpit crew
Weather
Late cabin crew
Air traffic delays
Late baggage to aircraft
Poor announcement of departures
Delayed
flight
departures
Late fuel
Weight/balance sheet late
Late food service
Contractor not provided
updated schedule
Materials
Delayed check-in procedure
Waiting for late passengers
Procedures
Figure 4.11
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Tools for Improving Quality
Wellington Fiber Board Co.
 Step 1—Checklist
 Step 2—Pareto chart
 Step 3—Cause-and-effect diagram
 Step 4—Bar chart
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Wellington Fiber Board Co.
Checklists
Headliner Defects
Defect type
Tally
Total
A. Tears in fabric
////
4
B. Discolored fabric
///
3
C. Broken fiber board
//// //// //// ////
//// //// //// /
//// //
D. Ragged edges
Total
Figure 4.12
36
7
50
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Wellington Fiber Board Co.
Pareto Chart
40
100
80
C
30
60
20
40
10
20
D
A
0
Figure 4.12
Cumulative percentage
Number of defects
50
B
0
Defect type
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Wellington Fiber Board Co.
Cause-and-Effect Diagram
People
Materials
Training
Out of specification
Not available
Absenteeism
Communication
Machine maintenance
Humidity
Schedule changes
Broken
fiber
board
Machine speed
Wrong setup
Other
Process
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Figure 4.12
IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Wellington Fiber Board Co.
Bar Chart
Number of broken fiber boards
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15
10
5
0
First
Figure 4.12
Second
Shift
Third
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IES 303 Engineering Management & Cost Analysis | Dr. Karndee Prichanont, SIIT
Next week
Case: Jose’s Authentic Mexican Restaurant
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Read and analyze the case: Jose’s Authentic
Mexican Restaurant, textbook page 166
Answer the posted questions. Also perform and
construct any applicable graphical displays in
analyzing the problem.
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