ProcessFlowHandout - Process Analysis Little’s Law&...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Process Analysis: Little’s Law & Process Performance Evaluation BUAD351 General Assumptions: Little’s Law applies for steady-state, long-term processing. It does not describe system behavior if the system is just starting (not at steady state) or at any particular point in time: it describes long-term averages. Activities are value-adding. When we draw an activity within a process flow diagram we assume it is value- adding. In practice, if we decide a particular step needs to be improved (time reduced), we can explore what wasteful (non-value-adding) aspects of the activity may exist and can be reduced or eliminated. Little’s Law: Time = Inventory/Rate (T = I/R) This is the same as Rate X Time = Inventory (RT = I) This is the same as Rate = Inventory/Time (R=I/T) o Inventory is the “stuff” that is moving through the process – in whatever units are provided (patients, customers, parts, products, etc.). We can look at total inventory in a process or at any individual step in the process.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern