MBA 8452 Systems and Operations Management

Process
Analysis

Process Analysis
Process Analysis

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

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
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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.

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Process Flowchart

Symbols
Tasks or operations

Decision Points

Storage areas or
queues

Flows of materials
or customers

Process Flowchart

Examples:

Hamburger Making
Customer
order

1. McDonalds
Process
Raw
material

Cook

Finished
burgers

Assemble

2. Burger King

Deliver

Assemble
C

Raw
material

Cook

WIP

Custom
or
Standard?

Customer
order

Assemble
Customer
order
Raw
material

Cook

Deliver

Finished
burgers

3. Wendys
Assemble

Deliver

Chili

Types of Processes

Single-stage vs. Multistage

Stage 1

Single-stage Process

Stage 1

Stage 2

Stage 3

Multistage Process
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Types of Process

Multistage Process with

Buffer
Stage 1

Buffer

Stage 2

What might happen without

buffer?

Blocking

Starving

Bottleneck

Types of Process

Make-to-stock vs. Make-toorder

Make-to-stock Process

Make

Customer
order

Make

Finished
goods

Customer
order

Deliver

Make-to-order Process

Deliver

You can not improve something you cant 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 = Cycle time

Throughput time
Velocity (throughput ratio) =
Value-added
time
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You can not improve something you cant measure

Process Performance Metrics

(cont.)

Efficiency = Actual output

Standard
output

Productivity =Output
Input

Utilization =

Time activated
Time
available
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Littles Law
Throughput time =Work-in-process
Throughput
rate

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Process Performance Metrics

Example 1
5 min/unit

8 min/unit

3 min/unit

Stage 1

Stage 2

Stage 3

(Assume 8-hour working day)

Cycle time = 8 minutes

Throughput rate = 60 units/day
Throughput time = 19 minutes

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Process Performance Metrics

Example 2
5 min/unit
Stage 1

Buffer

8 min/unit

3 min/unit

Stage 2

Stage 3

(Assume 8-hour working day)

Cycle time = 8 min

Throughput rate = 60 units/day
Throughput time = 5 + 144 + 8 + 3 = 160
min
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Process Throughput Time

Reduction

Perform activities in parallel

Change the sequence of activities

Reduce interruptions

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