ops mgt 5_6_Process Analysis_3501-4

ops mgt 5_6_Process Analysis_3501-4 - Process Analysis...

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Click to edit Master subtitle style Process Analysis If you cannot describe what you are doing as a process, you do not know what you are doing. W.E. Deming
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What is a process? A process is a series of independent tasks that transforms an input into output material of higher value for the organization Examples: 1. Honda transforms steel, rubber, and plastic into cars 2. McDonald’s transforms meat, potatoes, and sauces into packaged food 3. Dell transforms customer orders into PC’s
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Process Analysis Let’s look at the “black box” in more detail… Why do we need to analyze the process? - To identify inefficient tasks - To spot possible effectiveness improvement tasks - To understand where value can be added How can we analyze a process? Map it! What are the relevant performance measures?
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Process Flow Charts Graphical description of a process: Holding: Raw Materials, RM Work in Process, WIP Finished Goods Inventory, FGI Flow of material or work Processing step
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Example: Process in a Bakery Inputs flour, water, yeast, condiments Operations mixing, proofing (the dough rises), baking, packaging Outputs bread
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Bakery: Process Flow Chart Task Storage of goods Decision point Flow of goods Mix Bak e W IP Pro of Oven Jill Jac k Pac k R M F G
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Make-to-order vs. make-to-stock Task 1 Task 2 F GI Task 1 Task 2 Demand If demand is satisfied by FGI then the system is make-to-stock , otherwise it is a make-to order system Some examples… What are the tradeoffs?
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What is its capacity ? How many units per unit time go through each task? The process as a whole? What is the bottleneck ? Which production step limits the process capacity? What is the throughput time ? How long does it take to get through the system? Process Analysis: the performance measures Assume a process is in place. What do we need to measure in order to understand how efficient it is?
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