Professional Documents
Culture Documents
Process Analysis
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OBJECTIVES
What is a Process?
Transformation
Inputs process Outputs
Resources
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Evaluate performance
Identify specific performance metrics
Collect and analyze performance data
Find gaps between actual and desired
performances
Identify and analyze the causes of the
performance gaps
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Redesign process
Generate ideas for improvements
Propose a new process
Implement changes
Training on new jobs and skills, investments in
new technologies
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Service blueprint
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Process Flowchart
Examples: Installing
Task or an engine in a car ,
workstation giving an admission
ticket to a customer
Examples: Customer
Flow of order information,
information production order
information
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Examples: Inspecting
whether a material is
Decision good or bad,
Point determining what type
of service a customer
wants at a bank
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Types of Processes
Single-stage process
Stage 1
Serial process
Stage 1
Stage 1
Stage 2
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Storage
Stage 1 area Stage 2
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Example of Process Flowchart:
Bread-Making Process
Bread-
making
Raw
WIP
Materials Packing
Bread-
Making
FGI
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No
Faculty Make
Panel selection
Graduate Yes
Dean Review Financial Aid
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Service Blueprint
F F
F Possible fail-points
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Performance Metrics
Capacity-related metrics
E.g.) Capacity, cycle time, throughput time
Quality-related metrics
E.g.) Defective rate, customer satisfaction rate
Efficiency-related metrics
E.g.) Cost, productivity, capacity utilization
Flexibility-related metrics
E.g.) Time to change the process from one type of
product to another
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Capacity-related Performance
Metrics
Cycle time
Average time between completions of
successive units
How often does a unit drop off the end of the
process?
Throughput rate
Average number of units produced per unit time
1
Throughtput rate =
Cycle time
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Capacity-related Performance
Metrics (Contd)
Throughput time
Average time that a unit spends in the process
How long does a unit take between entering and
leaving the process?
Work-In-Process (WIP)
Average number of units in the process
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Capacity Analysis
1
=
Minimum cycle time
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We will analyze:
Capacity
Minimum cycle time (Min CT)
Maximum throughput rate (Max TR)
Minimum throughput time (Min TT)
WIP, when production is scheduled to achieve
Min CT and Min TT
We will assume that there is no variability in
processing times (i.e., they are fixed)
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Stage 1
2 min/unit
Min CT =
Max TR =
Min TT =
WIP =
28
Stage 1 Stage 2
10 min/unit 8 min/unit
Min CT =
Max TR =
Min TT =
WIP =
WIP at Stage 1 =
WIP at Stage 2 =
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Stage 1 Stage 2
10 min/unit 8 min/unit
0 10 18 28 38 48
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Stage 1 Stage 2
5 min/unit 6 min/unit
Min CT =
Max TR =
Min TT =
WIP =
WIP at Stage 1 =
WIP at Stage 2 =
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Stage 1 Stage 2
5 min/unit 6 min/unit
Stage 1 1 2 3 4
Stage 2 1 2 3 4
CT CT CT
0 5 11 17 23 29
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Min TT = 25
WIP = 2.5
WIP at Stage 1 = .8
WIP at Stage 2 = 1
WIP at Stage 3 =.7
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Stage 1
Stage 2
Stage 3
CT CT CT
0 25 35 45 55
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Stage A
10 min/unit
Stage A
10 min/unit
Min CT = 5
Max TR = 12
Min TT = 10
WIP = 2
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Stage A
10 min/unit
Stage A
Stage A
CT CT CT
0 10 15 20 25
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Bottleneck of a Process
Stage A
10 min/unit
Stage B
6 min/unit
Stage A
10 min/unit
Min CT =6
Min TT = 16
Bottleneck Analysis
Stage 1 Stage 2
10 min/unit 8 min/unit
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Littles Law
10 people
2 min/person
Waiting line
Stage A
10 min/unit
Stage B
6 min/unit
Stage A
10 min/unit
Min CT =6
Min TT =16
WIP =2.67
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Stage A 1 3
Stage A 2 4
Stage B 1 2 3 4
CT CT CT
0 10 16 22 28 34
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