PROCESS ANALYSIS TERMS

Process: Is any part of an organization that takes inputs and transforms them into outputs. Cycle Time: Is the average successive time between completions of successive units.

Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use.

PROCESS FLOWCHARTING
Process flowcharting is the use of a diagram to present the major elements of a process. These basic elements can include: tasks or operations flows of materials or customers decision points storage areas or queues. It is an ideal methodology by which to begin analyzing a process.

FLOWCHART SYMBOLS

Tasks or Operations

Examples: Giving an admission ticket to a customer, installing a engine in a car, etc. Examples: How much change should be given to a customer, which wrench should be used, etc.

Decision Points

FLOWCHART SYMBOLS (CONT.)

Storage areas or queues

Examples: Sheds, lines of people waiting for a service, etc. Examples: Customers moving to their seat, mechanic getting a tool, etc.

Flows of materials or customers

EXAMPLE FLOWCHART: STUDENT GOING TO SCHOOL

Go to school today? Yes

Drive to school

Walk to class

No

Goof off

Process Flowchart - Improving the Apartment Rent-Ready Process

1. Apartment Unit Vacated 2. Trash Out Unit 3. Assessment to Turn Unit/Make Ready 4. Perform Major Repairs 5. Prepare for Painting

6. Paint

7. Punch Out

8. Replace/ Repair Carpet

9. Clean Unit

10. Master Key Unit

11. Arrange Pest Control

12. Inspect/ Light Clean Daily Until Rented

13. Apt Unit Determined To Be Ready

14. Application Completed/ Approved

Apartment Unit Rented

MULTISTAGE PROCESSES

Stage 1

Stage 2

Stage 3

Multistage Process with Buffer

Buffer Stage 1 Stage 2

MULTI-STAGE PROCESSES
Buffering Refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage. Buffers allow stages to operate independently. Work-in-process (WIP) inventory will accumulate in the buffer. No Buffering Blocking: Occurs when activities in a stage must stop because there is no place to deposit the item just completed. Starving: Occurs when the activities in a stage must stop because there is no work.

OTHER TYPES OF PROCESSES

Make-to-order
Only activated in response to an actual order. Both work-in-process and finished goods inventory kept to a minimum.

Make-to-stock
Process activated to meet expected or forecasted demand. Customer orders are served from target stocking level.

PROCESS PERFORMANCE METRICS

Operation time = Setup time + Run time Cycle time = Average time between completion of units Throughput rate = 1/Cycle time Throughput time = Average time for a unit to move through the system* * Note: Littles Law computes throughput time while in (work-in-process) inventory only

CYCLE TIME EXAMPLE

Suppose you had to produce 600 units in 80 hours to meet the demand requirements of a product. What is the cycle time to meet this demand requirement?

BREAD-MAKING OPERATION
See pp. 113-114 (102-104 in old text). For homework, construct a table, showing the amount baked, amount packed, and WIP for each hour of the day (3 eight hour shifts).

Calculate the Throughput Time in WIP Inventory using Littles Law; then calculate the Total Throughput Time by adding the time in WIP inventory to the baking and packing times.