Transcript Process Analysis Process Flowcharting Categories of Processes Process Performance Metrics

Chapter 5
Process Analysis

Process Analysis

Process Flowcharting

Categories of Processes

Process Performance Metrics
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Process Analysis Terms
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Process: Is any part of an organization that
takes inputs and transforms them into
outputs.
Cycle Time: Is the average time between
completions of successive units.
Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use.
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Process Analysis Terms



Process: Is any part of an organization that
takes inputs and transforms them into
outputs.
Cycle Time: Is the average time between
completions of successive units.
Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use.
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Other Process Terminology
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
Blocking
– Occurs when the activities in a stage must stop because
there is no place to deposit the item just completed
– If there is no room for an employee to place a unit of
completed work, the employee will hold on to it and will
not be able to start working on the next unit
Starving
– Occurs when the activities in a stage must stop because
there is no work
– If an employee is waiting at a work station and no work is
coming for the employee to process, the employee will
remain idle until the next unit of work comes
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Other Process Terminology (Continued)
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Bottleneck
– Occurs when the limited capacity of a process causes
work to pile up or become unevenly distributed in the flow
of a process
– If an employee works too slow in a multi-stage process,
work will begin to pile up in front of that employee. In this
case the employee represents the limited capacity
causing the bottleneck.
Pacing
– Refers to the fixed timing of the movement of items
through the process
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Process Flowcharting
Defined
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Process flowcharting is the use of a diagram
to present the major elements of a process.
The basic elements can include tasks or
operations, flows of materials or customers,
decision points, and storage areas or
queues.
It is an ideal methodology by which to begin
analyzing a process.
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Flowchart Symbols
Tasks or operations
Decision Points
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Examples:
Examples:
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Flowchart Symbols (Continued)
Storage areas or
queues
Examples:
Flows of
materials or
customers
through the
process
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Example: Flowchart of Student Going
to School
Yes
No
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Multistage Process
Stage 1
Stage 2
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Stage 3
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Multistage Process with Buffer
Buffer
Stage 1
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Stage 2
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Categories of Processes
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Make-to-order
– Only activated in response to an actual order.
–
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Make-to-stock
– Process activated to meet expected or forecast
demand.
–
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Types of Processes
Design
Source
Manufacture
Fabricate Assemble
Distribute
Time
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Process Performance Metrics
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Throughput time =
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Cycle time =
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Throughput rate =
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Process Performance Metrics
(Continued)
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Velocity =
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Operation time =
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Efficiency =
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Process Performance Metrics
(Continued)
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Productivity =

Utilization =
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Process Performance Metrics
(Continued)
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Little’s Law:
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Cycle Time Example
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Suppose you had to produce 600 units in 80
hours to meet the demand requirements of a
product. What is the cycle time to meet this
demand requirement?
Answer:
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Example Continued
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What is the throughput rate?
Answer:
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If the actual output of units in 80 hours was
550, what was the efficiency?
Answer:
 If the line was manned to run 80 hours over
2 shifts, but was shut down for 8 hours,
what is the utilization?
Answer:
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A machine produces box A at a rate of 30
per minute. To switch the machine to A
requires a setup of 30 minutes. How long
will it take to make 10,000 A’s?
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If a refrigerator company has demand for
1000 refrigerators during a 7 hour shift,
what is the required cycle time of the line?
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What is the throughput rate?
•
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You arrive at the customer service
counter at Wal-Mart to find 11 customers
ahead of you. If the counter can service
20 customers per hour, what is your
throughput time in minutes?
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Process Throughput Time Reduction
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Perform activities in parallel -
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Change the sequence of activities -
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Reduce interruptions -
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Reduce Distance -
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