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MBA 8452 Systems and Operations Management MBA 8452 Systems and Operations Management Process Analysis.

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Presentation on theme: "MBA 8452 Systems and Operations Management MBA 8452 Systems and Operations Management Process Analysis."— Presentation transcript:

1 MBA 8452 Systems and Operations Management MBA 8452 Systems and Operations Management Process Analysis

2 2 Flow charting Types of Processes Process Performance Job Design Work Measurements Incentive Plans

3 3 What Is A Process? Process is the basic building block of an operations/production system A process is a collection of activities that transforms inputs into outputs that are valuable to the customer

4 4 Process Flowchart Diagram showing the major elements of a process and their interconnections tasks or operations flows of materials or customers storage areas or queues.

5 5 Process Flowchart Symbols Tasks or operations Decision Points Storage areas or queues Flows of materials or customers

6 6 Process Flowchart Examples: Hamburger Making Process 1. McDonald’s Cook Raw material Assemble Customer order Finished burgers Deliver 2. Burger King Cook Raw material Assemble Customer order Finished burgers Deliver WIP Custom or Standard? Assemble C S 3. Wendy’s Customer order Cook Raw material Assemble Chili Deliver

7 7 Types of Processes Single-stage vs. Multistage Stage 1 Stage 2Stage 3 Single-stage Process Multistage Process

8 8 Types of Process Multistage Process with Buffer Stage 1Stage 2 Buffer What might happen without buffer? Blocking Starving Bottleneck

9 9 Types of Process Make-to-stock vs. Make-to-order MakeDeliver Finished goods Customer order MakeDeliver Customer order Make-to-stock Process Make-to-order Process

10 10 “You can not improve something you can’t measure” Process Performance Metrics Operation time = Setup time + Run time Throughput time = Average time for a unit to move through the system Cycle time = Average time between completion of units Throughput rate = Velocity (throughput ratio) = 1 Cycle time Throughput time Value-added time

11 11 “You can not improve something you can’t measure” Process Performance Metrics (cont.) Efficiency = Productivity = Utilization = Output Input Time activated Time available Actual output Standard output

12 12 Little’s Law Throughput time = Work-in-process Throughput rate

13 13 Process Performance Metrics Example 1 5 min/unit8 min/unit3 min/unit Stage 1Stage 2Stage 3 Cycle time = 8 minutes Throughput rate = 60 units/day Throughput time = 19 minutes (Assume 8-hour working day)

14 14 Process Performance Metrics Example 2 Stage 1Stage 2 Buffer 5 min/unit8 min/unit Stage 3 3 min/unit Cycle time = 8 min Throughput rate = 60 units/day Throughput time = = 160 min (Assume 8-hour working day)

15 15 Process Throughput Time Reduction Perform activities in parallel Change the sequence of activities Reduce interruptions


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