hamid lecture for process flow

8/12/2019 Hamid Lecture for Process Flow

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Fall 2011

Class #2


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Toyotas WayWhat is Toyota doing now?

Taiichi Ohnosanswer was very simple:All we are doing is looking at the time line from the moment thecustomer gives us an order to the point when we collect the cash.

And we are reducing that time line by removing the non-value-added wastes.

(Taiichi Ohno. Toyota Production System: Beyond Large-Scale Production. p. ix.)

http://www.youtube.com/watch?v=kq4JVkkCzKY
http://www.youtube.com/watch?v=kq4JVkkCzKYhttp://www.youtube.com/watch?v=kq4JVkkCzKY


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Littles LawExample

A major manufacturer sells $300 million worth ofcellular equipment per year. Average amount in

accounts receivable is $45 million. What is theaverage elapse time from the time a customer isbilled to the time payment is received?

Note that in this case, the process is the manufacturers

account receivable department and the flow unit is a dollarin accounts receivable.


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7-4

Analyzing the Job

Flow process chart

Chart used to examine the overall sequence of anoperation by focusing on movements of theoperator or flow of materials


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7-5

Symbols for Flow-Process Chart

Operation(a task or work activity)

Inspection(an inspection of the product forquantity or quality)

Transportation(a movement of material fromone point to another)

Storage(an inventory or storage of materials

awaiting the next operation)

Delay(a delay in the sequence of operations)


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FLOW PROCESS CHART

Job Requisition of petty cash

Details of Method

ANALYSTD. Kolb PAGE1 of 2

Requisition made by department headPut in pick-up basket

To accounting departmentAccount and signature verifiedAmount approved by treasurerAmount counted by cashierAmount recorded by bookkeeper

Petty cash sealed in envelopePetty cash carried to departmentPetty cash checked against requisitionReceipt signedPetty cash stored in safety box


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Questions to ask when adopting a process

view1. What are the process boundaries: what is the input and output?

2. What is the flow unitor the unit of analysis?

3. Attach yourself to the flow unit and record its process stepsthrough theprocess

What are the value-added and necessary activities? What are theassociated processing times or work content?

Where does the flow unit wait (buffers)? What are the associated waitingtimes?

What are theroutes a flow unit can take?What are necessary precedence

relationships? (i.e., what must be done sequentially?) Note that the first improvement step will be to delete non-value-added and

unnecessary activities and buffers = waste


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Questions to ask when adopting a process

view (Cont.)4. Who does the work? What are the resources for each activity?

What are all the activities a given resource performs? (cross-training ,flexibility)

What are the resource constraints? What determines theflow rate?(demand or capacity)

How is qualitymeasured?

What is the cost of each resource?

5. What information is required to perform each activity? Where does this

information come from? This specifies the information flow (dashed lines)

Key for Capacity Analysis


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Case Study

Paediatric Orthopaedic Clinic at the Children'sHospital of Western Ontario
http://www.lhsc.on.ca/About_Us/Childrens_Hospital/


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Introduction As Chief of Paediatric Orthopaedic Surgery, Dr. Leitch was

very concerned by the long wait times that the youngpatients (and their parents) were experiencing in the clinic.Long wait times tended to aggravate the already pent-updistress and concern that they were feeling. She glanced atrecently collected data on service times and wondered howthe process might be improved, while continuing tobalance budgetary pressures to reduce costs. Moreover, any

changes could not be done in isolation, as her clinic sharedresources with other departments. A monthly executivemeeting was fast approaching, and expectations werestarting to run high that Leitchsefforts might be able tospur improvements in other departments too.


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Issues Major:

Reducing lengthy wait times

Minor: Improving process and service performance

Reducing variability in activity times and wait times

Identifying the interactions with patients from other

departments (shared resources) Efficiently managing both demand and human

resources to address patient needs.


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Average Patient Mix at the Clinic

Patients - 80

New 80(40% of total patients)

Follow-up - 48(60% of total patients)

No X-Ray required- 7.2(15% of follow-up

patients)

Need X-Ray 40.8(85% of follow-up

patients)


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Process Flow Diagram

hamid lecture for process flow

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