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PROCESS DESIGN

Case Study: The Action Response Applications Proc

(ARAPU)

Operation Management

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What is Process Design?

The activityof deteworkow, equipmeimplementation reqparticular process.

Process design typinumber of toolsinc

owcharting, procesoftware, and scale

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Process Design & Service/Product are Interrelated

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Quality Speedependa

ity

!le"ibility #ost

The Objectives of Process Des

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Process Types

anufacturin

g Service

$%ected by volume & variety

't has di%erent type from process that produced goods or services

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Detailed Process Design! Process

(ene)t* escribingprocesses in terms of how

the activities in the process

relate to each other. +i"prove process

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Di#erent $evel of Process app

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Process %isibility

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$ittles

$a'Principle inanufacturing-aiting time

tili/ation ofresourcesThroughpute0ciency

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The (#ect of %ariability

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What is )*)P+?

$ction 1esponse is a 2ondon+based charity dedicated to provresponses to critical situations throughout the world

Provide relatively short,ter" aid for s"all projects until obtain funding from larger donors

$ccessibility via the internet, by post & by phone

The charity receives requests for cash aid usually from an in

charity and looks to process the request quickly and providethey are needed, when they are needed

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-ase .acground

Target

ast responses! only "# days in processing the application$

"ey Issues

%$ There are complaints a&out the speed o' their response$

"$ Costs are &eginning to spiral$

Goal

To assess and recon'igure the processes employed ithin Action Rimproe responsieness and e''iciency$

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What objectives should the )*)P+ proctrying to achieve?

tos

Tthtuait

fua

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What is the "ain proble" 'ith the c)*)P+ process?

-e need to know* how many claims each stage has to process

how many people are available at each stage

how long each person is available for processin

how long on average each claim takes to proce

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Start

Opening

and

chec*ing

application

'orm

Application

'orm is

receied

&y + cler*s

Application

'orm is

receied

&y coding

sta''

- assessors

assess

application

'orm

Scanningapplicatio

n 'orm

.aiting 'orcommittee

o' trustees

meets on

Thursday

Rati'ication

application

'orm

Store

application

'orm

/ecline

application

'orm isreceied

&y o''icer

O''icer

'inali0e

and rite

suita&le

letter

PaymentPayment

/ocument

is receied

&y dispatch

cler*/ispatch

process

/eclinedAccepted

1##

application'orms per

ee*

Application

'orm are in

line o'processing

Openingand

chec*ing

process

Applica'orm is

receie

&y cod

sta''

Accepted

Re4ected%## application 'orms

per ee*

Committee o'

trustees

rati'ication

application'orm

%3# application %3# application

)*)P+s P

1##

don

0 h 1 l dd d i b i

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1## application per ee* and %## application put aside &y assessor per ee*

Receipt stage+## 5 %# minutes per application 6 +$### minutes (77!7- hours)

Coding stage

+## 5 "# minutes per application 6 8$### minutes (%11!11 hours)

Assess#ent stage

%# minutes 'or %## application

7# minutes 'or 1## application

(%9+ 5 %#) (19+ 5 7#) 6 +-!3 minutes

+## 5 +-$3 minutes 6 %;$### minutes (1%7!7- hours)

1%7!7-913 6 ; assessors

0o' "uch 1value,added 'or is being each stage?

0 h 1 l dd d i b i

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0o' "uch 1value,added 'or is being each stage?

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The hole process output is 1## claims processed per ee* and 'rom

there are around $%%% clai#s in process at any gi&en ti#e! Unit opehours ee*$

The cycle time o' the hole process is 6 1391## 6 #!%" hours

Throughput time 6 or* in progress 5 cycle time

Throughput time 6 "$### 5 #!%" 6 "+# hours 6 1+ days

Ine2ciency in Process

ore34 dtar

0 ld th )*)P+ b

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0o' could the )*)P+ process bei"proved?

$1$P

improvement

balance theprocess

3ireasse

4ore th

eliminateapplications that

need furtherinformation

5dupot

appl

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Internet'(ased ser&ices

The I"prove"ent

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Si"ulation

T)ROUG)PUT

1## applications per ee*cycle time is 13 9 1## 6 #$%" hours

Throughput time 6 or* in progress 5 cycle time

("# days) %+# hours 6 .2P 5 #!%"

.2P 6 %$%77!7-

*IT)OUT REC+C,ING

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-O5-$+SIO5

Process design is important in every process stage for iden

e0ciency and e%ectiveness in order to make improvement

(ased on 2ittle 2aws formula, there are some way to optimdesign such as*-aiting timetili/ation of resourcesThroughput e0ciency

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