Teaching Notes on Process Analysis

Teaching Notes on Process Analysis - 311 OPERATION...

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311 O PERATION  M ANAGEMENT I NFORMATION   AND  O PERATIONS  M ANAGEMENT M ARSHALL  S CHOOL   OF  B USINESS T EACHING  N OTES   ON  P ROCESS  A NALYSIS Business strategy is the determination of the basic long-term goals and objectives of an enterprise, and   the adoption of course of action and the allocation of resources necessary for carrying out these goals.           - Alfred Chandler.  1. Introduction:  Definitions and Examples While   business strategy   involves choosing   product attributes   and   markets   on which to compete,  operations strategy  focuses on enabling and executing the business strategy.   Business strategy is  concerned with selecting external markets and operational strategy involves designing internal processes.  Operations strategy must establish objectives that are consistent with the overall business goals and  develop appropriate  processes . Process   is a collection of tasks (or activities) that consume some resource and transform inputs to  outputs.  Processes are the main building block of a business.  There are many different types of resources that are consumed in the transformation process including: Labor Capital  Energy Material Data It is possible to measure each of these entities by physical units like man-hours for labor, weight for  material, bytes for data, and so on.  We also measure the cost of these resources. The output of a process can be a good, information or a service.  Often a process will define a sequence in which the tasks or activities are carried out.  The  process flow  chart  is used to depict the flows.  Elements of a process flow chart are Activities P AGE  1
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311 OPERATIONS MANAGEMENT Resources consumed by an activity Duration of an activity Flows  Storage The following is a process flow chart for the production of cookies.  The steps are mixing of the dough,  putting the dough on to a tray, loading the oven, baking, cooling and packing.  Associated with each task  are set of resources that are required and the time.  The flow chart also depicts the sequence. DOUGH An activity  consumes resources and transforms the inputs. Ideally you would want every activity to add  value by bringing an input closer to what the customer of the process requires.  In a business process there are flows  of goods and information and some times funds.  Flow of goods is  the movement of goods from one activity (work-station), or storage facility, to another activity or storage  facility.  Transmission of information can be achieved by tools like computers or by simple methods like  attaching a written card to a product.  In many cases the information flows in the same direction as the 
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This note was uploaded on 05/08/2008 for the course BUAD 311 taught by Professor Vaitsos during the Spring '07 term at USC.

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Teaching Notes on Process Analysis - 311 OPERATION...

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