MBA8452

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MBA 8452 Systems and Operations Management
Process Analysis
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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
Storage areas or queues
Tasks or operations
Flows of materials or customers
Decision Points
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Process Flowchart Examples Hamburger Making
Process
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Types of Processes

• Single-stage vs. Multistage

Single-stage Process
Multistage Process
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Types of Process Multistage Process with Buffer

• What might happen without buffer?
• Blocking
• Starving

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Types of ProcessMake-to-stock vs. Make-to-order
Make-to-stock Process
Make-to-order Process
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You can not improve something you cant
measureProcess 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)

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You can not improve something you cant measure
Process Performance Metrics (cont.)

• Efficiency
• Productivity
• Utilization

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Littles Law
Work-in-process
Throughput time
Throughput rate
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Process Performance Metrics Example 1
(Assume 8-hour working day)

• Cycle time 8 minutes
• Throughput rate 60 units/day
• Throughput time 19 minutes

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Process Performance Metrics Example 2
(Assume 8-hour working day)

• Cycle time 8 min
• Throughput rate 60 units/day
• Throughput time 5 144 8 3 160 min

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Process Throughput Time Reduction

• Perform activities in parallel
• Change the sequence of activities
• Reduce interruptions