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Note_on_Process_Analysis

# Note_on_Process_Analysis - BUAD 311T A Note on Process...

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BUAD 311T 1 A Note on Process Analysis: This note develops several important concepts and definitions related with processes (e.g., Bottleneck, Cycle Time, Capacity, and Capacity Utilization, etc.) by providing a number of examples. We first provide some definitions: Process : A process is a collection of tasks and storages connected by a flow of goods and information that transforms inputs into more valuable outputs. Example of Task, Storage and Flows: In the above example, the unit of flow is the material needed to make one unit of the end product. The flow chart above shows flow of goods. The rectangles show tasks and triangles show storages. Flow of information (not shown in the flow chart) could include setup instructions, number of units to be made, and the product type, etc. The information could flow with the product or separately from the product. Before analyzing a process, it is always desirable to clearly identify the boundary of the process (the beginning and end points or the entrance and exit). The process that we choose for analysis can be the entire process (from customer arrival to departure of the customer) or it could be a segment of a bigger process. Flow Rate : It measures the average number of units that flow through the process per period. (It is also called throughput rate or output rate.) Throughput Time (TPT) : It measures the average amount of time that a unit spends in the process from beginning to the end. (It is also called Manufacturing Lead Time or MLT.) Work-in-Process Inventory : It measures the average number of units inside the process boundary. This includes the units at various levels of completion at all stages (tasks and storage) in the process. Another related definition is Cycle Time (CT). Cycle time for a process is simply the average interval between two successive units coming off the process. For example, if a process has flow rate (capacity)of 120 units per hour then the CT for the process is 0.5 minutes per unit. CT and Flow Rate have an inverse relationship. It is important to understand that the cycle time is the average interval between two successive units. Whether the process produces the units at a uniform rate or in batches does not affect the cycle time as long as the total production rate is the same. Lathe Work Milling Grinding Inspection and Shipping of units Preparation and grouping of materials to make units

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BUAD 311T 2 Examples: Example 1 . Consider a single-stage production process shown below. The customers that arrive require five minutes of processing time each. Arrivals Departures Part a : What is the minimum possible cycle time for this process? Answer : 5 minutes/unit. Why? Because, the minimum possible cycle time will be attained if the process operates continuously. We should see one unit coming off the process every 5 minutes if the process operates continuously. The cycle time will be more than 5 minutes per unit if the process does not operate continuously. The minimum possible cycle time for a process will also be called the
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Note_on_Process_Analysis - BUAD 311T A Note on Process...

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