Ko University

OPSM 301: Operations Management

Session 7:
Process analysis
Zeynep Aksin
zaksin@ku.edu.tr

Process Architecture is defined and

represented by a process flow chart:
Process = network of activities performed by
resources
1. Process Boundaries:
input
output

2. Flow unit: the unit of analysis

3. Network of Activities & Storage/Buffers
activities with activity times
routes: precedence relationships (solid lines)

4. Resources & Allocation

5. Information Structure & flow (dashed lines)

Flowchart Symbols
Tasks or
operations

Decision
Points

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

Flowchart Symbols
Storage areas
or queues

Examples: Lines of
people or cars waiting
for a service, parts
waiting for assembly
etc.

Flows of
materials or
customers

Examples: Customers
moving to a seat,
mechanic getting a
tool, etc.

Recall:Terminology
Flow Time (T)
The flow time (also called variously throughput time, cycle time) of
a given routing is the average time from release of a job at the
beginning of the routing until it reaches an inventory point at the end
of the routing.

Flow time
1

Flow time in the House Game process?

Production Control
(color sheets, log sheets, scissors)

Base Cut
(scissors)

Roof

Base Form

(scissors)

Base Weld
(stapler)

Final Assembly
(tape)

Quality Control
Customer

Critical Path & Critical Activities

Critical Path: A path with the longest total cycle
time.

B
D
C

Critical Activity: An activity on the critical path.

Operational Measure: Flow Time

Driver: Activity Times, Critical Activity
(Theoretical) Flow Time
Critical Activity
Flow Time efficiency = Theoretica l Flow Time
Average Flow Time

X-Ray Service Process

1. Patient walks to x-ray lab
2. X-ray request travels to lab by messenger
3. X-ray technician fills out standard form based on info. From
physician
4. Receptionist receives insurance information, prepares and signs
form, sends to insurer
5. Patient undresses in preparation of x-ray
6. Lab technician takes x-ray
7. Darkroom technician develops x-ray
8. Lab technician checks for clarity-rework if necessary
9. Patient puts on clothes, gets ready to leave lab
10. Patient walks back to physicians office
11. X-rays transferred to physician by messenger

Example

7
start
2

20

12
7

8
25%

10

75%
end
11
20

transport
support
Value added
decision

Measured actual flow time: 154 minutes

Consider all possible paths

Path1: 1-4-5-6-7-8-9-10
Path 2: 2-3-4-5-6-7-8-9-10
Path 3: 1-4-5-6-7-8-11
Path 4: 2-3-4-5-6-7-8-11

50
69
60
79

Levers for Reducing Flow Time

Decrease the work content of critical activities
work smarter
work faster
do it right the first time
change product mix

Move work content from critical to non-critical activities

to non-critical path or to ``outer loop

Reduce waiting time.

Most time inefficiency comes from waiting:

E.g.: Flow Times in White Collar Processes
Industry

Process

A verage
Flow Time

Theoretical
Flow Time

Flow Time
Efficiency

Life Insurance

New Policy
A pplication

72 hrs.

7 min.

0.16%

Consumer
Packaging

New Graphic
Design

18 days

2 hrs.

0.14%

Commercial Bank

Consumer
Loan

24 hrs.

34 min.

2.36%

H ospital

Patient Billing

10 days

3 hrs.

3.75%

A utomobile
M anufacture

Financial
Closing

11 days

5 hrs

5.60%

Flow rate (capacity) in the House Game

process?
Production Control
(color sheets, log sheets, scissors)

Base Cut
(scissors)

Roof

Base Form

(scissors)

Base Weld
(stapler)

Final Assembly
(tape)

Quality Control
Customer

Tools: Gantt Chart

Gantt charts show the time at which different
activities are performed, as well as the sequence of
activities
Resources

activities

2
3
4
time

Example of a two-stage production line

5 min

2 min

Gantt Chart

A
5

A
10

20

15

B
7

B
12

B
17

22

Example of a two-stage production line

A1
5 min
B

A2
5 min

2 min

Gantt Chart

A1

A1

A1

A1
15

10

A2

A2

A2

A2
17

12

B
7

B
9

20

B
12 14

B
17 19

22

B
22

B
24

Theoretical Capacity
Theoretical capacity: The capacity (throughput
rate) of a process under ideal conditions (units /
time)
Effective capacity: The capacity that one expects
of a process under normal working conditions
(units/time)
Effective capacity < Theoretical capacity

Effective Capacity (scheduled availability)

Effective capacity depends on the following

Number of shifts
Product variety
Maintenance
Idleness

Realized Capacity (net availability)

Actual production or realized throughput rate
Usually lower than effective capacity.

Machine and equipment failures

Quality problems
Workforce losses
Other uncertainties

Operational Measure: Capacity

Drivers: Resource Loads
(Theoretical) Capacity of a Resource
Bottleneck Resource
(Theoretical) Capacity of the Process
Capacity Utilization of a Resource/Process =
Realized throughput [units/hr]
Theoretical capacity [units/hr]

X-ray revisited

7
start
2

20

12
7

8
25%

10

75%
end
11
20

transport
support
Value added
decision

Measured actual flow time: 154 minutes

X-Ray revisited
Resource
Pool

Res. Unit
Load

Load
Batch

Theoretical No of units Theoretical

Capacity of in pool
capacity of
Res. unit
pool

Messenger

20+20
1
min/patient

60/40=1.5
patients/hr

1.5(6)=9
Patient/hr

Receptionist

60/5=12

12

X-ray
technician

6+7.5+2.5

60/16=3.75

15

X-ray lab

6+0.25(6)= 1
7.5

60/7.5=8

16

Darkroom
technician

12+0.25(12)
=15

60/15=4

12

Darkroom

12+0.25(1
2)=15

60/15=4

Changing
room

3+3

60/6=10

20

Utilizations given an observed throughput of

5.5 patients/hr
Resource pool

Theoretical capacity
Patients/hr

Capacity utilization

Messenger

61.11

Receptionist

12

45.83

X-ray technician

15

36.67

X-ray lab

16

34.38

Darkroom technician

12

45.83

Darkroom

68.75

Changing room

20

27.50

A Recipe for Capacity Measurements

Resource Unit Load
Resource Capacity
(time/job) Unit Capacity # of units Total

* assuming system is processing at full capacity

Process Resource
Capacity Utilization*

Effect of Product Mix- Example

Resource
pool

Unit Load
(Physician)

Unit Load
(Hospital)

Unit Load
(60%-40%
mix)

Mailroom
clerk

0.6

1.0

0.76

Data-entry
clerk

4.2

5.2

4.60

Claims
processor

6.6

7.5

6.96

Claims
supervisor

2.2

3.2

2.60

Theoretical capacity for hospital claims

Resource

Sch.
Unit Load
availability min/claim

Th.
Capacity
resource

Number in Th.
pool
Capacity
pool

Mailroom
clerk

450

1.0

450/1=450

450

Data entry 450

clerk

5.2

450/5.2=86.5

692

Claims
360
processor

7.5

360/7.5=48

12

576

Claims
240
supervisor

3.2

240/3.2=75

375

Theoretical capacity for 60%-40% mix

Resource

Sch.
Unit Load
availability min/claim

Th.
Capacity
resource

Number in Th.
pool
Capacity
pool

Mailroom
clerk

450

0.76

592

592

Data entry 450

clerk

4.60

98

784

Claims
360
processor

6.96

51.7

12

621

Claims
240
supervisor

2.60

92

460

In summary

Throughput Process Capacity

Theoretical Capacity

Effective Capacity

Levers for Increasing Process Capacity

Decrease the work content of bottleneck activities

work smarter
work faster
do it right the first time
change product mix

Move work content from bottlenecks to non-bottlenecks

to non-critical resource or to third party

Increase Net Availability

work longer
increase scale (invest)
increase size of load batches
eliminate availability waste

Announcements
Read and be prepared to analyze Kristens
Cookie for next class (Mon 17/10)
Second Assignment: Read the Universal Pulp
and Paper case-due next Wednesday 19/10!
Draw a process flowchart
Find the bottleneck for this process. Show all analysis
in detail.
To produce the projected 3.68 million tons per year of
newsprint, where should an investment in capacity
occur?
Do you have any further recommendations for
management?