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7/30/2019 Om Lecture 03
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Prof. Arun [email protected]
9893686820
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Process Analysis Flowcharting
Process Terminologies
Types of Business Process Strategies Process Performance Metrics
Cyclic Time
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Systematic examination of all aspectsof a process to improve its operation
a process usually consists of:A set of tasks
Flow of material & information that
connect the set of tasks.Storage of material & information.
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Process: Is any part of an organizationthat takes inputs and transforms theminto outputs.
Cycle Time: Is the average successivetime between completions of successiveunits.
Utilization: Is the ratio of the time that aresource is actually activated relative tothe time that it is available for use
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Process flowcharting is the use of adiagram to present the major elementsof a process.
The basic elements can include tasks oroperations, flows of materials orcustomers, decision points, and storageareas or queues.
It is an ideal methodology by which tobegin analyzing a process.
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Tasks or operations Examples: Giving an
admission ticket to a
customer, installing a
engine in a car, etc.
Decision Points Examples: How much
consession should be
given to a customer,
which tool should beused, etc.
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Storage areas or
queues
Examples: Sheds, lines of
people waiting for a service,
etc.
Flows of materials or
customers
Examples: Customers moving
to the a seat, mechanic
getting a tool, etc.
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Yes
No
Goof off
Go to
school
today?
Walk to
class
Drive to
school
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Stage 1 Stage 2 Stage 3
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Stage 1 Stage 2
Buffer
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Blocking
Occurs when the activities in a stage must stopbecause there is no place to deposit the item justcompleted
If there is no room for an employee to place a unit
of work down, the employee will hold on to it andnot able to continue working on the next unit
Starving Occurs when the activities in a stage must stop
because there is no work If an employee is waiting at a work station and no
work is coming to the employee to process, theemployee will remain idle until the next unit ofwork comes
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Bottleneck Occurs when the limited capacity of a process
causes work to pile up or become unevenlydistributed in the flow of a process
If an employee works too slow in a multi-stage
process, work will begin to pile up in front of thatemployee. In this case, the employee representsthe limited capacity causing the bottleneck.
Pacing Refers to the fixed timing of the movement of items
through the process
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Types of Business Process Strategies
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Operation time = Setup time
Run time
Throughput time = Average time for aunit to move through the system
Velocity = Throughput time
Value-added time
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Cycle time = Average time betweencompletion of units
Throughput rate = 1 .Cycle time
Efficiency = Actual outputStandard Output
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Productivity = Output
Input Utilization = Time Activated
Time Available
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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 the average time between completionswould have to be:
Cycle time = 4,800/600 units = 8 minutes.
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Perform activities in parallel.
Change the sequence of activities.
Reduce interruptions.
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