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Chapter 4. Flowcharts and Capacity

Chapter 4. Flowcharts and Capacity. Outline A System Perspective Basic Flowcharting Elements Process Capacity Time Requirements Capacity Analysis. A System Perspective. Understanding of the transformation processes System Perspective

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Chapter 4. Flowcharts and Capacity

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  1. Chapter 4. Flowcharts and Capacity • Outline • A System Perspective • Basic Flowcharting Elements • Process Capacity • Time Requirements • Capacity Analysis MAN 3504 - Chapter 4

  2. A System Perspective • Understanding of the transformation processes • System Perspective • A system boundary - depends on the purpose of the analysis • identification of customers and outputs - external or internal • identification of suppliers and inputs - materials, resources, ... • identification of system flows - the activities • identification of measures of performance - profits? MAN 3504 - Chapter 4

  3. Example Tax Documents Arrive Attach Document to work package Review that all required documents are in the package • Activities required to prepare tax forms B Documents Missing All is OK Request documents from the customer Prepare all tax forms A Documents Missing Forms Missing or incorrect Review of forms Wait for materials A B All OK Take to main office Partner reviews the forms Notify Customer End Documents Missing Forms Missing or incorrect A B MAN 3504 - Chapter 4

  4. Example 2 Must customer be contacted again (need additional documents/ clarifications) Customer Calls for Appointment No Customer is contacted + documents requested Appointment is scheduled Yes • Points of customer contact Customer is contacted to schedule a review meeting Customer Arrives A Customer Arrives Wait for interviewer Wait for interviewer Customer is interviewed and documents placed in a folder Forms and fees presented to customer Customer Leaves No Customer satisfied with work Fix-up process A Forms prepared Yes Customer Leaves End MAN 3504 - Chapter 4

  5. Basic Flowcharting Elements • One set of icons. There are many used in different fields. This is one subset of those. ACTION/ OPERATION CONNECTOR WAIT QUALITY ACTION MOVE DECISION MAN 3504 - Chapter 4

  6. Basic Flowcharting: What Flows through the system • One or more types of entities • People - patients in an hospital or doctor’s office, customers at a bank • Forms - loan application documents at a processing center, admission application at a university • Materials - computers at a store, plastic cups at a factory • Waste/trash - trash collected from offices • Vehicles - cars at a concert • Information - inventory information at a supermarket MAN 3504 - Chapter 4

  7. Determining Process Capacity • Based on the analysis of the capacity for each activity • The capacity of an activity is controlled by (given a resource set) • Time required to complete the activity - time to fill a form, time to perform a test • Space required - number of seats in a theater, space in the buffer MAN 3504 - Chapter 4

  8. Estimating Time Requirements • Very popular, lost it, gaining it back • Measurement of activities • Standard time for an activity 1. Determine the start and end of the activity (bounds) 2. Measure (stopwatch) several people several times (days) 3. Analyze the measurements 4. ST = NT/(1-Allowances) • Other Standards: Baselines - experience/historical performance MAN 3504 - Chapter 4

  9. Time Standards Example Plot of the data and the average Eliminating two “variant” points MAN 3504 - Chapter 4

  10. Capacity Analysis • An evaluation of how forecasted demand/planned production matches capacity • Can be based on a combination of products/services • Measurement of capacity: • Utilization = Required capacity / Estimated Capacity • Efficiency = Actual Output / Estimated Capacity • CA can be done at different levels of an organization MAN 3504 - Chapter 4

  11. Factors Affecting Capacity • Economies of scale/ Diseconomies of scale • Learning/ Experience curve • Growth - capacity additions creates complexity, bureaucracy • Day-to-day factors • Breakdown - equipment failure, employees sick • Setup - non producing preparation time • Starved - idle time given some input is not available • Blocked - cannot produce as there is no space for the new item • Maintenance - idle time for maintenance activity MAN 3504 - Chapter 4

  12. Example Used Equipment Arrives Wait for equipment personnel • Calculate Time requirement per activity for all products (equipment) • SUM (Time x planned use) Equipment is cleaned Does this equipment need a preparation process Take to clean area No Yes Equipment is prep for use End MAN 3504 - Chapter 4

  13. Next Chapter • More on flowcharts MAN 3504 - Chapter 4

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