1 Slides used in class may be different from slides in student pack Chapter 5 Process Analysis  Process Analysis  Process Flowcharting  Categories of Processes  Process Performance Metrics

2 Slides used in class may be different from slides in student pack Process Analysis Terms  Process: Is any part of an organization that takes inputs and transforms them into outputs.  Cycle Time: Is the average 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.

3 Slides used in class may be different from slides in student pack Process Analysis Terms  Process: Is any part of an organization that takes inputs and transforms them into outputs.  Cycle Time: Is the average 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.

4 Slides used in class may be different from slides in student pack Other Process Terminology  Blocking –Occurs when the activities in a stage must stop because there is no place to deposit the item just completed –If there is no room for an employee to place a unit of completed work, the employee will hold on to it and will not be able to start 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 for the employee to process, the employee will remain idle until the next unit of work comes

5 Slides used in class may be different from slides in student pack Other Process Terminology (Continued)  Bottleneck –Occurs when the limited capacity of a process causes work to pile up or become unevenly distributed 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 that employee. In this case the employee represents the limited capacity causing the bottleneck.  Pacing –Refers to the fixed timing of the movement of items through the process

6 Slides used in class may be different from slides in student pack Process Flowcharting Defined  Process flowcharting is the use of a diagram to present the major elements of a process. The basic elements can include tasks or operations, flows of materials or customers, decision points, and storage areas or queues.  It is an ideal methodology by which to begin analyzing a process.

7 Slides used in class may be different from slides in student pack Flowchart Symbols Tasks or operations Examples: Decision Points Examples:

8 Slides used in class may be different from slides in student pack Flowchart Symbols (Continued) Examples:Storage areas or queues Flows of materials or customers through the process

9 Slides used in class may be different from slides in student pack Example: Flowchart of Student Going to School Yes No

10 Slides used in class may be different from slides in student pack Multistage Process Stage 1Stage 2Stage 3

11 Slides used in class may be different from slides in student pack Multistage Process with Buffer Stage 1Stage 2 Buffer

12 Slides used in class may be different from slides in student pack Categories of Processes  Make-to-order –Only activated in response to an actual order. –  Make-to-stock –Process activated to meet expected or forecast demand. –

13 Slides used in class may be different from slides in student pack Types of Processes Design Source Manufacture Distribute FabricateAssemble Time

14 Slides used in class may be different from slides in student pack Process Performance Metrics  Throughput time =  Cycle time =  Throughput rate =

15 Slides used in class may be different from slides in student pack Process Performance Metrics (Continued)  Velocity =  Operation time =  Efficiency =

16 Slides used in class may be different from slides in student pack Process Performance Metrics (Continued)  Productivity =  Utilization =

17 Slides used in class may be different from slides in student pack Process Performance Metrics (Continued)  Little’s Law:

18 Slides used in class may be different from slides in student pack 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?  Answer:

19 Slides used in class may be different from slides in student pack Example Continued  What is the throughput rate? Answer:  If the actual output of units in 80 hours was 550, what was the efficiency? Answer:  If the line was manned to run 80 hours over 2 shifts, but was shut down for 8 hours, what is the utilization? Answer:

20 Slides used in class may be different from slides in student pack A machine produces box A at a rate of 30 per minute. To switch the machine to A requires a setup of 30 minutes. How long will it take to make 10,000 A’s?  

21 Slides used in class may be different from slides in student pack If a refrigerator company has demand for 1000 refrigerators during a 7 hour shift, what is the required cycle time of the line?  What is the throughput rate?

22 Slides used in class may be different from slides in student pack You arrive at the customer service counter at Wal-Mart to find 11 customers ahead of you. If the counter can service 20 customers per hour, what is your throughput time in minutes?

23 Slides used in class may be different from slides in student pack Process Throughput Time Reduction  Perform activities in parallel -  Change the sequence of activities -  Reduce interruptions -  Reduce Distance -