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Chapter 4
Process Analysis

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OBJECTIVES
Process Analysis
Process Flowcharting
Types of Processes
Process Performance Metrics

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Process Analysis Terms

Process: Is any part of an organization that
takes inputs and transforms them into outputs
Cycle Time: Is the average successive 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

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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

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Flowchart
Symbols Purpose and Examples
Tasks or operations

Decision Points

Examples:
Examples: Giving
Givingan
an
admission
admissionticket
ticket to
toaa
customer,
customer,installing
installingaa
engine
enginein
inaacar,
car,etc.
etc.
Examples:
Examples: How
How much
much
change
changeshould
shouldbe
be
given
givento
toaacustomer,
customer,
which
whichwrench
wrench should
should
be
be used,
used,etc.
etc.

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Flowchart
Symbols Purpose and Examples
Storage areas or
queues

Examples:
Examples: Sheds,
Sheds,
lines
linesof
of people
peoplewaiting
waiting
for
for aaservice,
service,etc.
etc.

Flows of
materials or
customers

Examples:
Examples: Customers
Customers
moving
movingto
toaaseat,
seat,
mechanic
mechanicgetting
gettingaa
tool,
tool, etc.
etc.

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Example: Flowchart of Student Going to

School
Go to
school
today?

Yes

Drive to
school

Walk to
class

No
Goof
off

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Types of Processes
Single-stage Process
Stage 1

Multi-stage Process
Stage 1

Stage 2

Stage 3

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Types of Processes (Continued)

A buffer refers to a storage area between stages
where the output of a stage is placed prior to
being used in a downstream stage

Multi-stage Process with Buffer

Buffer
Stage 1

Stage 2

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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 work
down, the employee will hold on to it not 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, the employee will
remain idle until the next unit of work comes

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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 is case the employee represents
the limited capacity causing the bottleneck.

Pacing
Refers to the fixed timing of the movement of items
through the process
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Other Types of Processes

Make-to-order
Only activated in response to an actual order
Both work-in-process and finished goods inventory
kept to a minimum

Make-to-stock
Process activated to meet expected or forecast
demand
Customer orders are served from target stocking
level
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Process Performance Metrics

Operation time = Setup time + Run time
Throughput time = Average time for a unit to
move through the system
Velocity = Throughput time
Value-added time

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Process Performance Metrics (Continued)

Cycle time = Average time between
completion of units
Throughput rate =

1
.
Cycle time

Efficiency = Actual output

Standard Output
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Process Performance Metrics (Continued)

Productivity = Output
Input
Utilization = Time Activated
Time Available

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Cycle Time Example

Suppose
Suppose you
you had
had to
to produce
produce 600
600 units
units in
in 80
80 hours
hours to
to
meet
meet the
the demand
demand requirements
requirements of
of aa product.
product. What
What isis
the
the cycle
cycle time
time to
to meet
meet this
this demand
demand requirement?
requirement?

Answer:
Answer: There
There are
are 4,800
4,800 minutes
minutes (60
(60
minutes/hour
minutes/hour xx 80
80 hours)
hours) in
in 80
80 hours.
hours. So
So the
the
average
average time
time between
between completions
completions would
would have
have
to
to be:
be: Cycle
Cycle time
time == 4,800/600
4,800/600 units
units == 88 minutes.
minutes.

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Process Throughput Time Reduction

Perform activities in parallel
Change the sequence of activities
Reduce interruptions

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End of Chapter 4

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