7/30/2019 Om Lecture 03

1/21

Prof. Arun Mishraarunjimishra@gmail.com

9893686820

7/30/2019 Om Lecture 03

2/21

Process Analysis Flowcharting

Process Terminologies

Types of Business Process Strategies Process Performance Metrics

Cyclic Time

2

7/30/2019 Om Lecture 03

3/21

Systematic examination of all aspectsof a process to improve its operation

a process usually consists of:A set of tasks

Flow of material & information that

connect the set of tasks.Storage of material & information.

3

7/30/2019 Om Lecture 03

4/21

Process: Is any part of an organizationthat takes inputs and transforms theminto outputs.

Cycle Time: Is the average successivetime between completions of successiveunits.

Utilization: Is the ratio of the time that aresource is actually activated relative tothe time that it is available for use

4

7/30/2019 Om Lecture 03

5/21

Process flowcharting is the use of adiagram to present the major elementsof a process.

The basic elements can include tasks oroperations, flows of materials orcustomers, decision points, and storageareas or queues.

It is an ideal methodology by which tobegin analyzing a process.

5

7/30/2019 Om Lecture 03

6/21

6

Tasks or operations Examples: Giving an

admission ticket to a

customer, installing a

engine in a car, etc.

Decision Points Examples: How much

consession should be

given to a customer,

which tool should beused, etc.

7/30/2019 Om Lecture 03

7/217

Storage areas or

queues

Examples: Sheds, lines of

people waiting for a service,

etc.

Flows of materials or

customers

Examples: Customers moving

to the a seat, mechanic

getting a tool, etc.

7/30/2019 Om Lecture 03

8/218

Yes

No

Goof off

Go to

school

today?

Walk to

class

Drive to

school

7/30/2019 Om Lecture 03

9/219

Stage 1 Stage 2 Stage 3

7/30/2019 Om Lecture 03

10/2110

Stage 1 Stage 2

Buffer

7/30/2019 Om Lecture 03

11/21

Blocking

Occurs when the activities in a stage must stopbecause there is no place to deposit the item justcompleted

If there is no room for an employee to place a unit

of work down, the employee will hold on to it andnot able to continue 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 to the employee to process, theemployee will remain idle until the next unit ofwork comes

11

7/30/2019 Om Lecture 03

12/21

Bottleneck Occurs when the limited capacity of a process

causes work to pile up or become unevenlydistributed 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 thatemployee. In this case, the employee representsthe limited capacity causing the bottleneck.

Pacing Refers to the fixed timing of the movement of items

through the process

12

7/30/2019 Om Lecture 03

13/2113

Types of Business Process Strategies

7/30/2019 Om Lecture 03

14/21

Operation time = Setup time

Run time

Throughput time = Average time for aunit to move through the system

Velocity = Throughput time

Value-added time

14

7/30/2019 Om Lecture 03

15/21

Cycle time = Average time betweencompletion of units

Throughput rate = 1 .Cycle time

Efficiency = Actual outputStandard Output

15

7/30/2019 Om Lecture 03

16/21

Productivity = Output

Input Utilization = Time Activated

Time Available

16

7/30/2019 Om Lecture 03

17/21

Suppose you had to produce 600 units in 80hours to meet the demand requirements of aproduct. What is the cycle time to meet thisdemand requirement?

Answer: There are 4,800 minutes (60minutes/hour x 80 hours) in 80 hours.

So the average time between completionswould have to be:

Cycle time = 4,800/600 units = 8 minutes.

17

7/30/2019 Om Lecture 03

18/21

Perform activities in parallel.

Change the sequence of activities.

Reduce interruptions.

18

7/30/2019 Om Lecture 03

19/21

19

7/30/2019 Om Lecture 03

20/21

20

7/30/2019 Om Lecture 03

21/21

21