ch 5 outline - PROCESS ANALYSIS Understanding how processes...

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PROCESS ANALYSIS Understanding how processes work is essential to ensure the competitiveness of a company. A process is any part of an organization that takes inputs and transforms then into outputs that are of greater value to the organization than the original inputs. Outputs of many processes are services . EX: hospital, airline Analyzing a process answers these questions: 1. How many customers can the process handle per hour 2. How long will it take to serve a customer 3. What change is neded in the process to expand capacity 4. How much does the process cost Analysis needs to be as simple as possible. The 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 is it available for use. Steps for analyzing slot machine: 1. Analyzing the mechanical slot machine 2. Analyzing the electronic slot machine 3. Compare 4. Realize that the slot machine is only one of many casino processes (Many factors that you have to consider that effect many other area of the casino) PROCESS FLOWCHARTING Typically, the activities associate with a process effect one another so it is important to consider the simultaneous performance of a number of activities. Process flowcharting is the use of a diagram to present the major elements of a process Tasks/Operations = Rectangles Flows of materials/customers = Arrows Storage areas = Inverted Triangles Decision points = Diamonds ** Operations in a flow chart above ------- are tasks performed by the customer and below are tasks performed by the machine (think of slot machine diagram) Flows in a diagram can be diverted into multiple directions.
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