PROCESS ANALYSIS

PROF ASHIS K CHATTERJEE

 DEFINITION
A Process transforms inputs into a desired output. Outputs
may be goods or services.
A process may be characterized in terms of its capacity,
productivity and flexibility.
Study & analysis of processes helps in designing the right
kind of systems to support the operations strategy.

• parts are assembled into cars by using labour, equipment,

energy.
• Meat, lettuce, tomatoes etc. are used by the cooks to
produce hamburgers.
• Doctors converting a sick person to a healthy person,
using other inputs.
 ANALYSING A PROCESS- AN
EXAMPLE
• Process Description
A slot machine is activated when a customer puts
one or more coins in the machine and then pulls
the arm of the machine. 3 wheels spin; after a time
they stop. Each wheel has a number of different
symbols. A Wheel can stop at any of the symbols
Payment is made based on the combination. The
Casino has worked things out in a way that they
keep only 5% of the money. An average player
feeds a coin in the machine every 15 seconds.
 WORKING OF A SLOT M/C
• Take a slot machine with 2 wheels, and 5
symbols on each wheel. Let there be 2
types of symbols $ and X
• The first wheel has got one $ and four X,
the second wheel has two $ and three X
• Combinations:
4. $$ : Payment 5 times (2/25)
5. $X : Payment money doubled (3/25)
6. X$ : Payment money returned (8/25)
7. XX : No money (12/25)
 PROCESS FLOW CHART
Draw the process flow chart. Evaluate a new
m/c that processes coins every 10 seconds,
other things remaining same.
Process Chart Symbols
Flow of Material
Tasks/operations customer

Decision
Storage area Points
 PROCESS FLOW CHART
N

W L
A B /L STOP Y C
?

E D

PB N A INSERT COIN C: QUIT

FU PB
LL F B: PULL M/C ARM
?
Y D: PAY WINNINGS

WB E: ACTIVATE PAYOUT
G
F:MOVE COIN TO PB
G: MOVE COIN TO WB
 PROCESS FLOW CHART
• When PB is full the coins are deposited in a
second winnings bucket (WB)
• When the customer wins, the money comes
from the payout bucket (PB)
• Process design consideration: Bucket size
(The m/c should be designed to automatically
keep PB filled during play)
• Decision on bucket size is based on trade off
between time lost in filling buckets (if small) and
money blocked (if big)
 TYPES OF PROCESSES-I
• Make-to-order process is activated only in
response to an actual order
• Make-to-stock process produces standard
products that can be delivered quickly
• Hybrid process combines the above two
such that a generic product is made and
stocked and then finished based on actual
orders
 TYPES OF PROCESSES-II
• Job shop: Each job has got a number of
operations to be performed in different
machines in different order.
• Assembly line: Each job goes through the
same sequence of operations on different
machine.
 MEASURING PROCESS
PERFORMANCE
• Productivity: ratio of output to input
• Run time is the time required to produce a
batch of parts
• Setup time is time required to prepare a
machine to make an item
• Operation time is the sum of the setup time
and run time for a batch of parts
• Throughput time: the time that the unit
spends actually being worked and the time
spent waiting in the queue
 FURTHER PERFORMANCE
MEASURE
• Value-added time is the time that useful
work is actually being done on the unit

• Process velocity: the ratio of the total

throughput to the value-added time

• Throughput time= Work-in-process

Throughput rate
 PROCESS THROUGHPUT TIME
REDUCTION

• Perform activities in parallel

• Reduce back and forth movement
• Reduce interruptions
• Eliminate redundant activities
• Combine activities wherever possible
 SUMMARY
• Process analysis and design play an important
role in managing operations efficiently
• Choice of process in terms of made-to-order or
made-to-stock depends on the tradeoff between
speed of delivery and inventory
• Choice of process in terms of Job shop or
Assembly is dependant on the volume of
production
• Process flow charting can be useful in improving
system performance through identification of
bottleneck, reduction of throughput time and
increasing productivity