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Operations ManagementOperations Management
Module 4 : Module 4 : Process AnalysisProcess Analysis
S.BalachandranS.Balachandran
December 2007 2007
December 2007 © S.Balachandran 2 of 23
In this session . . .In this session . . .
• Process TerminologyProcess Terminology
• Process FlowchartingProcess Flowcharting
• Types of ProcessesTypes of Processes
• Process Performance MetricsProcess Performance Metrics
December 2007 © S.Balachandran 3 of 23
Process TermsProcess Terms
• ProcessProcess: A sequence of operational steps in : A sequence of operational steps in any part of an organization that takes any part of an organization that takes inputsinputs and and transformstransforms them into them into outputsoutputs
• Cycle TimeCycle Time: : AverageAverage time between time between completions of successive steps in a completions of successive steps in a process process
• UtilizationUtilization: Ratio of the time that a : Ratio of the time that a resource resource is actually activatedis actually activated relative to the time that it relative to the time that it is available for useis available for use
December 2007 © S.Balachandran 4 of 23
Process FlowchartingProcess Flowcharting
Tasks or operations
Decision Points
Storage areas or queues
Flows of materials or customers
Inspection
D Delay / Waiting
December 2007 © S.Balachandran 5 of 23
Types of ProcessesTypes of Processes
Single-stage Process
Stage 1
Stage 1 Stage 2 Stage 3
Multi-stage Process
December 2007 © S.Balachandran 6 of 23
Flowchart Example : Car RepairFlowchart Example : Car Repair
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
* = Points critical to the success of the service
December 2007 © S.Balachandran 7 of 23
Flowchart Example : Car RepairFlowchart Example : Car Repair
Repair authorized
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Repair not authorized
* = Points critical to the success of the service
December 2007 © S.Balachandran 8 of 23
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Repair not authorized
Service visible to customerRepair authorized
* = Points critical to the success of the service
Flowchart Example : Car RepairFlowchart Example : Car Repair
December 2007 © S.Balachandran 9 of 23
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Checkparts
availability†
Order parts
Parts available
Parts not available
Service visible to customerRepair authorized
Repair not authorized
Perform work†
* = Points critical to the success of the service † = Points at which failure is most often experienced
Flowchart Example : Car RepairFlowchart Example : Car Repair
December 2007 © S.Balachandran 10 of 23
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Checkparts
availability†
Perform work†
Order parts
Inspect/ test and repair
Perform corrected
work
Corrective work necessary
Repair not authorized
Parts not available
Parts available
Service visible to customerRepair authorized
Repair complete
* = Points critical to the success of the service † = Points at which failure is most often experienced
Flowchart Example : Car RepairFlowchart Example : Car Repair
December 2007 © S.Balachandran 11 of 23
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Checkparts
availability†
Order parts
Service not visible to customer
Repair not authorized
Parts available
Service visible to customerRepair authorized
Perform work†
Inspect/ test and repair
Perform corrected
work
Corrective work necessary
Parts not available
Repair complete
* = Points critical to the success of the service † = Points at which failure is most often experienced
Flowchart Example : Car RepairFlowchart Example : Car Repair
December 2007 © S.Balachandran 12 of 23
* = Points critical to the success of the service † = Points at which failure is most often experienced
Customer drops off
car
Mechanic makes
diagnosis*
Discuss needed
work with customer*
Customer departs with car
Collect payment
Notify customer
Checkparts
availability†
Order parts
Repair complete
Repair not authorized
Parts available
Service visible to customerRepair authorized
Service not visible to customer
Perform work†
Inspect/ test and repair
Perform corrected
work
Corrective work necessary
Parts not available
Flowchart Example : Car RepairFlowchart Example : Car Repair
December 2007 © S.Balachandran 13 of 23
Flowchart Example : HospitalFlowchart Example : Hospital
Process: Emergency room admissionSubject: Ankle injury patientBeginning: Enter emergency roomEnding: Leave hospital
Step no.
Time (min)
Distance (ft)
Summary
Number of stepsActivity
Time (min)
Distance (ft)
Transport Operation
Inspect
StoreDelay
Step description
Insert Step
Append Step
Remove Step
December 2007 © S.Balachandran 14 of 23
Process: Emergency room admissionSubject: Ankle injury patientBeginning: Enter emergency roomEnding: Leave hospital
1 Enter emergency room, approach patient window 2 Sit down and fill out patient history3 Nurse escorts patient to ER triage room4 Nurse inspects injury5 Return to waiting room
6 Wait for available bed 7 Go to ER bed8 Wait for doctor9 Doctor inspects injury and questions patient
10 Nurse takes patient to radiology
11 Technician x-rays patient12 Return to bed in ER13 Wait for doctor to return14 Doctor provides diagnosis and advice15 Return to emergency entrance area
16 Check out17 Walk to pharmacy18 Pick up prescription 19 Leave the building
Step no.
Time (min)
Distance (ft)
Summary
Number of stepsActivity
Time (min)
Distance (ft)
Transport Operation
Inspect
StoreDelay
Step description
Insert Step
Append Step
Remove Step
Flowchart Example : HospitalFlowchart Example : Hospital
December 2007 © S.Balachandran 15 of 23
Flowchart Example : HospitalFlowchart Example : Hospital
Figure 3.8
Process: Emergency room admissionSubject: Ankle injury patientBeginning: Enter emergency roomEnding: Leave hospital
1 0.50 15 X Enter emergency room, approach patient window 2 10.0 - X Sit down and fill out patient history3 0.75 40 X Nurse escorts patient to ER triage room4 3.00 - X Nurse inspects injury5 0.75 40 X Return to waiting room
6 1.00 - X Wait for available bed 7 1.00 60 X Go to ER bed8 4.00 - X Wait for doctor9 5.00 - X Doctor inspects injury and questions patient
10 2.00 200 X Nurse takes patient to radiology
11 3.00 - X Technician x-rays patient12 2.00 200 X Return to bed in ER13 3.00 - X Wait for doctor to return14 2.00 - X Doctor provides diagnosis and advice15 1.00 60 X Return to emergency entrance area
16 4.00 - X Check out17 2.00 180 X Walk to pharmacy18 4.00 - X Pick up prescription 19 1.00 20 X Leave the building
Step no.
Time (min)
Distance (ft)
Summary
Number of stepsActivity
Time (min)
Distance (ft)
Transport Operation
Inspect
StoreDelay
Step description
Insert Step
Append Step
Remove Step
December 2007 © S.Balachandran 16 of 23
Flowchart Example : HospitalFlowchart Example : Hospital
Process: Emergency room admissionSubject: Ankle injury patientBeginning: Enter emergency roomEnding: Leave hospital
1 0.50 15 X Enter emergency room, approach patient window 2 10.0 - X Sit down and fill out patient history3 0.75 40 X Nurse escorts patient to ER triage room4 3.00 - X Nurse inspects injury5 0.75 40 X Return to waiting room
6 1.00 - X Wait for available bed 7 1.00 60 X Go to ER bed8 4.00 - X Wait for doctor9 5.00 - X Doctor inspects injury and questions patient
10 2.00 200 X Nurse takes patient to radiology
11 3.00 - X Technician x-rays patient12 2.00 200 X Return to bed in ER13 3.00 - X Wait for doctor to return14 2.00 - X Doctor provides diagnosis and advice15 1.00 60 X Return to emergency entrance area
16 4.00 - X Check out17 2.00 180 X Walk to pharmacy18 4.00 - X Pick up prescription 19 1.00 20 X Leave the building
Step no.
Time (min)
Distance (ft)
Summary
Number of stepsActivity
Time (min)
Distance (ft)
Transport 9 11 815 Operation 5 23 —
Inspect 2 8 —
Store — — —Delay 3 8 —
Step description
Insert Step
Append Step
Remove Step
December 2007 © S.Balachandran 17 of 23
Flowchart Example : HospitalFlowchart Example : Hospital
Process: Emergency room admissionSubject: Ankle injury patientBeginning: Enter emergency roomEnding: Leave hospital
1 0.50 15 X Enter emergency room, approach patient window 2 10.0 - X Sit down and fill out patient history3 0.75 40 X Nurse escorts patient to ER triage room4 3.00 - X Nurse inspects injury5 0.75 40 X Return to waiting room
6 1.00 - X Wait for available bed 7 1.00 60 X Go to ER bed8 4.00 - X Wait for doctor9 5.00 - X Doctor inspects injury and questions patient
10 2.00 200 X Nurse takes patient to radiology
11 3.00 - X Technician x-rays patient12 2.00 200 X Return to bed in ER13 3.00 - X Wait for doctor to return14 2.00 - X Doctor provides diagnosis and advice15 1.00 60 X Return to emergency entrance area
16 4.00 - X Check out17 2.00 180 X Walk to pharmacy18 4.00 - X Pick up prescription 19 1.00 20 X Leave the building
Step no.
Time (min)
Distance (ft)
Summary
Number of stepsActivity
Time (min)
Distance (ft)
Transport 9 11 815 Operation 5 23 —
Inspect 2 8 —
Store — — —Delay 3 8 —
Step description
Insert Step
Append Step
Remove Step
December 2007 © S.Balachandran 18 of 23
Process Flow TermsProcess Flow Terms
• BufferingBuffering− Storage areaStorage area between process stagesbetween process stages where output of a stage is where output of a stage is
placed prior to being used in a downstream stageplaced prior to being used in a downstream stage
• BlockingBlocking– Occurs when the Occurs when the activitiesactivities in a process stage in a process stage must stopmust stop because because
there is there is no place to depositno place to deposit the item just completed the item just completed– If there is no room for an employee to place a unit of work down, If there is no room for an employee to place a unit of work down,
the employee will the employee will hold on to ithold on to it not able to continue working on the not able to continue working on the next unitnext unit
• StarvingStarving– Occurs when the Occurs when the activitiesactivities in a stage in a stage must stopmust stop because because there is there is
no workno work – If an employee is If an employee is waiting waiting at a work station and no work is coming at a work station and no work is coming
to the employee to process, the employee to the employee to process, the employee will remain idlewill remain idle until the until the next unit of work comes next unit of work comes
December 2007 © S.Balachandran 19 of 23
Process Flow TermsProcess Flow Terms
• BottleneckBottleneck– Occurs when the Occurs when the limited capacitylimited capacity of a process step of a process step
causes causes work to pile upwork to pile up or become or become unevenly distributedunevenly distributed in in the flow of a processthe flow of a process
– If an If an employee or machineemployee or machine works too slow in a works too slow in a multi-multi-stage processstage process, work will begin to , work will begin to pile uppile up in front of that in front of that employee or machine. In this case the employee employee or machine. In this case the employee represents the represents the limited capacitylimited capacity causing the bottleneck. causing the bottleneck.
• PacingPacing– Refers to the Refers to the fixed timingfixed timing of the of the movementmovement of items of items
through the process (e.g., Conveyor Belt in Assembly through the process (e.g., Conveyor Belt in Assembly Line)Line)
December 2007 © S.Balachandran 20 of 23
Generic Process TypesGeneric Process Types
• Make-to-orderMake-to-order
– Only Only activatedactivated in response to an in response to an actual orderactual order
– InventoryInventory : both work-in-process and finished : both work-in-process and finished
goods kept to a goods kept to a minimumminimum
• Make-to-stockMake-to-stock
– Process Process activatedactivated to meet expected or to meet expected or forecast forecast
demanddemand
– Customer orders are served from Customer orders are served from target stocking target stocking
levellevel
December 2007 © S.Balachandran 21 of 23
Process Performance MetricsProcess Performance Metrics• Operation time = Setup time + Operation time = Setup time + Run timeRun time
• Throughput time = Average time for a unit toThroughput time = Average time for a unit tomove through the systemmove through the system
• Velocity = Velocity = Throughput timeThroughput time Value-added timeValue-added time
• Cycle time = Average time between completion of unitsCycle time = Average time between completion of units• Throughput rate = Throughput rate = 1 1 ..
Cycle timeCycle time• Efficiency = Efficiency = Actual outputActual output
Standard OutputStandard Output• Productivity = Productivity = OutputOutput
InputInput
• Utilization = Utilization = Time ActivatedTime Activated Time AvailableTime Available
December 2007 © S.Balachandran 22 of 23
Performance Metrics - LinkagesPerformance Metrics - Linkages
December 2007 © S.Balachandran 23 of 23
Reducing Throughput TimeReducing Throughput Time
• Eliminate unnecessary activitiesEliminate unnecessary activities
• Perform activities in parallel Perform activities in parallel
• Change the sequence of activitiesChange the sequence of activities
• Reduce interruptions and delaysReduce interruptions and delays
• Reduce duration of bottleneck activitiesReduce duration of bottleneck activities
Use Flowcharts to analyse ProcessUse Flowcharts to analyse Process