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Operations Management
Iba Almajzoub
1
Process AnalysisProcess Analysis
Operations Management
For Competitive AdvantageLecture 4
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Process Analysis
Process Analysis
Process Flowcharting
Types of Processes
Process Performance Metrics
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Process Analysis Terms
Process: Is any part of an organization thattakes inputs and transforms them intooutputs.
Cycle Time: Is the average successive timebetween completions of successive units.
Utilization: Is the ratio of the time that aresource is actually activated relative to thetime that it is available for use.
Operations Management
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Process FlowchartingDefined
Process flowcharting is the use of adiagram to present the major elements of aprocess. The basic elements can includetasks or operations, flows of materials orcustomers, decision points, and storage
areas or queues. It is an ideal methodology by which to begin
analyzing a process.
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Flowchart Symbols
Tasks or operations Examples: Giving an
admission ticket to acustomer, installing aengine in a car, etc.
Decision Points Examples: How muchchange should begiven to a customer,
which wrench shouldbe used, etc.
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Flowchart Symbols (Continued)
Storage areas or
queues
Examples: Sheds,
lines of people waitingfor a service, etc.
Flows of
materials orcustomers
Examples: Customersmoving to the a seat,mechanic getting a
tool, etc.
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Example: Flowchart of Student Goingto School
Yes
No
Dayoff
Go toschooltoday?
Walk toclass
Drive toschool
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Multistage Process
Stage 1 Stage 2 Stage 3
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Multistage Process with Buffer
Stage 1 Stage 2
Buffer
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Other Types of Processes
Make-to-order
Only activated in response to an actual order.
Both work-in-process and finished goodsinventory kept to a minimum.
Make-to-stock
Process activated to meet expected or forecastdemand.
Customer orders are served from target stockinglevel.
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Process Performance Metrics
Operation time = Setup time
Run time
Throughput time = Average time for a unit tomove through the system
Velocity = Throughput time
Value-added time
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Process Performance Metrics
(Continued) Cycle time = Average time between
completion of units
Throughput rate = 1 .
Cycle time
Efficiency = Actual output
Standard Output
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Process Performance Metrics(Continued)
Productivity = Output
Input
Utilization = Time Activated
Time Available
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Cycle Time Example
Suppose you had to produce 600 units in 80hours to meet the demand requirements of aproduct. What is the cycle time to meet thisdemand requirement?
Answer: There are 4,800 minutes (60minutes/hour x 80 hours) in 80 hours. So theaverage time between completions wouldhave to be: Cycle time = 4,800/600 units = 8minutes.
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Process Throughput Time Reduction
Perform activities in parallel.
Change the sequence of activities.
Reduce interruptions.
