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Process Analysis

Operations Management. For Competitive Advantage. Process Analysis. Process Analysis Process Flowcharting Types of Processes Process Performance Metrics. Process Analysis. Process : Is any part of an organization that takes inputs and transforms them into outputs.

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Process Analysis

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  1. Operations Management For Competitive Advantage Process Analysis

  2. Process Analysis Process Flowcharting Types of Processes Process Performance Metrics Process Analysis

  3. Process: Is any part of an organization that takes inputs and transforms them into outputs. Cycle Time: Is the average successive 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. Process Analysis Terms

  4. Process flowchartingis 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. Process FlowchartingDefined

  5. Flowchart Symbols Tasks or operations Examples: Giving an admission ticket to a customer, installing a engine in a car, etc. Examples: How much change should be given to a customer, which wrench should be used, etc. Decision Points

  6. Flowchart Symbols (Continued) Storage areas or queues Examples: Sheds, lines of people waiting for a service, etc. Examples: Customers moving to the a seat, mechanic getting a tool, etc. Flows of materials or customers

  7. Example: Flowchart of Student Going to School Yes Go to school today? Drive to school Walk to class No Goof off

  8. Multistage Process Stage 1 Stage 2 Stage 3

  9. Multistage Process with Buffer Buffer Stage 1 Stage 2

  10. Make-to-order Only activated in response to an actual order. Both work-in-process and finished goods inventory kept to a minimum. Make-to-stock Process activated to meet expected or forecast demand. Customer orders are served from target stocking level. Other Types of Processes

  11. Operation time = Setup time Run time Throughput time = Average time for a unit to move through the system Velocity = Throughput time Value-added time Process Performance Metrics

  12. Cycle time = Average time between completion of units Throughput rate = 1 . Cycle time Efficiency = Actual output Standard Output Process Performance Metrics (Continued)

  13. Productivity = Output Input Utilization = Time Activated Time Available Process Performance Metrics (Continued)

  14. 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: There are 4,800 minutes (60 minutes/hour x 80 hours) in 80 hours. So the average time between completions would have to be: Cycle time = 4,800/600 units = 8 minutes. Cycle Time Example

  15. Perform activities in parallel. Change the sequence of activities. Reduce interruptions. Process Throughput Time Reduction

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