Process Analysis

Process Analysis
Process Flowcharting
Types of Processes
Process Performance Metrics
OBJECTIVES

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

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

Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Examples: How much change should be given to a customer, which wrench should be used, etc.
Purpose and Examples
Flowchart Symbols

Examples: Sheds, lines of people waiting for a service, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Purpose and Examples
Flowchart Symbols

Example: Flowchart of Student Going to School

Types of Processes

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

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

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

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

Process Performance Metrics
Operation time = Setup time + Run time
setup time= preparation time
run time = time to produce a batch of output (unit)
Throughput time or Flow time = Average time for a unit to move through the system
Value-added time= productive work done on a unit
Velocity = Throughput time
Value-added time

Process Performance Metrics (Continued)
Cycle time = Average time or 60mins____
between completion of units Unit produced
- Elapse time between starting and completing a job
Throughput rate = 1____
Cycle time
- or Capacity rate: max # a process expected to produce over period of time
Efficiency = Actual output
Standard Output
efficiency: 36/30 = 120%

Sample 1

Sample 2

Process Performance Metrics (Continued)
Productivity = Output
Input
Utilization = Time Activated
Time Available

Cycle Time Example
Suppose you had to produce 600 units in 80 hours to meet the demand requirements of a product. What is the cycle time to meet this demand requirement?
Answer: There are 4,800 minutes (60 minutes/hour x 80 hours) in 80 hours. So the average time between completions would have to be: Cycle time = 4,800/600 units = 8 minutes.

Process Throughput Time Reduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions

Flowchart Exercise
Using flowchart, expand the place item into a plastic bags to highlight set of tasks that includes checking if all items are in bags, than stop packing or else place items into plastic bags. It also includes checking if the bag is full than place the next item into a new bag.

Answer

Question Bowl
Which of the following are possible examples of “cycle times”?
Time for each television to come off an assembly line.
Time it takes for a stock purchase
Time it takes for an instructor to grade an exam
Time it takes to build an automobile
All of the above
Answer: e. All of the above

Question Bowl
Which of the following are used as symbols in a Process Flowchart?
Decision points
Blocking
Starving
Bottleneck
All of the above
Answer: a. Decision points (A diamond shaped symbol.)

Question Bowl
Which type of process is configured as follows?
Single-stage process
Multi-stage process
Make-to-order process
Make-to-stock process
All of the above
Answer: b. Multi-stage process

Question Bowl
When an assembly line employee is waiting for a unit of work to come down the line so they can stop being idle and get back to work, it is an example of which of the following process terms?
Buffering
Blocking
Starving
Bottleneck
All of the above
Answer: c. Starving

Question Bowl
When a company waits until they have an order for their product in hand before beginning any production for that order, we can characterize their operation as which of the following processes?
Single-stage process
Multi-stage process
Make-to-order process
Make-to-stock process
All of the above
Answer: c. Make-to-order process

Question Bowl
If the Run Time for a batch of parts is 45 minutes on a machine, and the Setup Time is 65 minutes, which of the following is the Operation Time?
75 minutes
110 minutes
Only 45 minutes
65/45 minutes or 1.44 hours
Can not be computed on the data above
Answer: b. 110 minutes ( Operation Time is the sum of Run Time and Setup Time, or 65 + 45 = 110 minutes)

Question Bowl
If the standard expected phone calls for a telephone marketers is 24 per hour, and one telephone marketer did 27 per hour, which of the following can be used to describe their Efficiency?
88.8%
100%
112.5%
Well over 150%
Can not computed on the information given.
Answer: c. 112.5%
(Ratio of actual performance/expected performance, or (27/24) x 100 = 110 minutes)