MBA 8452 Systems and Operations ManagementMBA 8452 Systems and Operations Management

Process Process AnalysisAnalysis

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Process Analysis

Process Analysis

Process Analysis

Flow charting

Types of Processes

Process Performance

Job Design

Work Measurements

Incentive Plans

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What Is A Process? Process is the basic building block

of an operations/production system

A process is a collection of activities that transforms inputs into outputs that are valuable to the customer

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Process Flowchart Diagram showing the major

elements of a process and their interconnections tasks or operations flows of materials or customers storage areas or queues.

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Process Flowchart Symbols

Tasks or operations

Decision Points

Storage areas or queues

Flows of materials or customers

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Process Flowchart Examples: Hamburger Making Process1. McDonald’s

CookRaw

material Assemble

Customer order

Finished burgers Deliver

2. Burger KingCook

Raw material

Assemble

Customer order

Finished burgers

DeliverWIP Customor

Standard?

Assemble

CS

3. Wendy’sCustomer order

CookRaw

material Assemble

Chili

Deliver

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Types of Processes Single-stage vs. Multistage

Stage 1

Stage 1 Stage 2 Stage 3

Single-stage Process

Multistage Process

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Types of Process Multistage Process with Buffer

Stage 1 Stage 2Buffer

What might happen without buffer? Blocking Starving

Bottleneck

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Types of ProcessMake-to-stock vs. Make-to-order

Make DeliverFinishedgoods

Customer order

Make Deliver

Customer order

Make-to-stock Process

Make-to-order Process

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“You can not improve something you can’t measure”

Process Performance Metrics Operation time = Setup time + Run time Throughput time = Average time for a unit to

move through the system Cycle time = Average time between completion

of units Throughput rate =

Velocity (throughput ratio) =

1Cycle time

Throughput timeValue-added time

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“You can not improve something you can’t measure” Process Performance Metrics (cont.)

Efficiency =

Productivity =

Utilization =

OutputInput

Time activatedTime available

Actual outputStandard output

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Little’s Law

Throughput time =Work-in-processThroughput rate

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Process Performance Metrics Example 1

5 min/unit 8 min/unit 3 min/unit

Stage 1 Stage 2 Stage 3

Cycle time = 8 minutes

Throughput rate = 60 units/day

Throughput time = 19 minutes

(Assume 8-hour working day)

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Process Performance Metrics Example 2

Stage 1 Stage 2Buffer

5 min/unit 8 min/unit

Stage 3 3 min/unit

Cycle time = 8 minThroughput rate = 60 units/day

Throughput time = 5 + 144 + 8 + 3 = 160 min

(Assume 8-hour working day)

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Process Throughput Time Reduction Perform activities in parallel

Change the sequence of activities

Reduce interruptions