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Business Processes. BA 339 Mellie Pullman. Littlefield Login. Buy your code this week! Log onto: http://lt.responsive.net/lt/pdx/start.html Enter “dollars” It will ask for your team name & password must consist only of numbers and lower case letters must not contain spaces or punctuation.
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Business Processes BA 339 Mellie Pullman
Littlefield Login • Buy your code this week! • Log onto: http://lt.responsive.net/lt/pdx/start.html • Enter “dollars” • It will ask for your team name & password • must consist only of numbers and lower case letters • must not contain spaces or punctuation
After Game has started • Oct. 8 at 5 PM, you will then logon with: • http://lt.responsive.net/lt/pdx/entry.html We will look at the running factories on October 10 in class but you can make changes as soon as it starts on October 8.
Process Analysis Terms • Process: Is any part of an organization that takes inputs and transforms them into outputs. • Cycle Time: Is the average time needed to complete a business process. • Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use.
Process Throughput Rateor Flow Rate R • Number of jobs (or customers) that flow through the system perunit of time. • Cakes per hour • Kitchen orders per shift • Drive-in customers per day • Process Throughput rate R = 1 . Takt Time
Bottleneck • Slowest activity or operation in system. • Sets the pace for throughput rate of system.
Process Types(in order of decreasing volume) • Continuous Flow • Production Line • Batch (High Volume) • Batch (Low Volume) • Job Shop • Project
Continuous Flow • Large production volumes • High level of automation • Basic material passed along, converted as it moves • Usually very high fixed costs, inflexible
Production Line High-volume production of standard products or “design window”
Job Shop • Low volume, one-of-a-kind products • Job shops sell their capability • Highly flexible equipment, skilled workers • Equipment arranged by function
Batch I • Somewhere in between job shop and line processes • Moderate volumes, multiple products • Production occurs in “batches”
Batch II Layout is a cross between that found in a line and that found in a job shop: Group Technology
Project • Used when a product is: • one-of-a-kind • too large to be moved • Resources moved to where needed • Equipment, people, etc. are highly flexible • Finite duration, often with deadline
Mixing Together the Process Types ... Spindles ASSEMBLY LINEfor putting together final product Arms and Legs BATCH for fabricating parts ... Seats
Product – Process Matrix Very Poor Fit Very Poor Fit
What is “Customization”? An operations-centric view:
Customization Models Definitions: ETO – engineer to order MTO – make to order ATO – assemble-to-order MTS – make to stock Upstream: before the customization point, “off-line” activities Downstream: after the customization point, “on-line” activities
Make-to-Stock • Planning Issues • When, how much, and how to replenish stock at location • Success • Balancing level of inventory against level of service Other examples?
Assemble-to-Order • Success comes from: • Flexible Engineering design • Modularity
ATO Planning Issues • Options configurations (Smart Car) • 8 different colors • 2 different trims • 2 different seats • Possible combinations? • Less finished good inventory & waste than MTS
Make-to-order or Engineer-to-order The Joinery
