Process Analysis aka SMART COST CUTTING

About effectiveness and performance. Getting more per dollar.

Process flow from start to finish

Value Stream

Workstations Tasks Processes

Cycle Time time a workstation (or process) can produce a unit of input
- Interval of time bet 2 successive outputs coming out of a workstation or process
- Time you have to wait for the next output

Capacity no of units that can be produced

Assumptions:

No. of Operators: 1

Workstations cycle time: 15 min

Lead time = processing time + waiting time

- Order processing time
Throughput Rate The actual rate a process or workstation produces outputs
Steady state

Capacity Utilization labor utilization

Utilization Process
Assumption: 1 man operation

Cycle Time vs Lead Time

- Cycle time: capacity

- Lead time: constant

Decreasing the bottleneck will decrease lead time, thus increasing process capacity

Cutting lead - If a non bottleneck operation , the process capacity will still be the same

Manpower Planning
Scenario: additional operator (non bottleneck)

Overstaffing without increase in the capacity

Scenario: Additional operator bottleneck shift the bottleneck, thus increasing capacity
Lead time constant

Direct Labor Utilization increase as the manpower increases

Line Balancing
The lead time will be equally distributed across all steps. 15/5 = 3 mins
Rightsizing the Right Way

Takt time demand is limited

- Demand = capacity
- No unserved demand nor excess capacity like manpower
Adjust manpower and balance

Required manpower: avoid under and over staffing

Cant produce the demand should have a balance the line 3 min
Work in Process no. of customers inside a factory being served or waiting to be served

- The ave. no of units inside a process

Littles Law

WIP = Throughput rate (TP) x Lead Time (LT)

WIP Reduction

Reduce throughput or Lead Time (hard value stream analysis, TP shouldnt be affected) : 35:00

Benchmarking

Apple to apple basis

Base Case 5 (dont know how to compute)

Make-To-Stock (Push System) builds goods based on capacity, minimize shortages (45 min)

Make-To-Order (Pull System) builds according to actual demand

Just in Time Line - delivers inputs based on Tak time, low capacity utilization,

Kanban - signboard