Lecture 4_Outline - Process Analysis

Lecture 4_Outline - Process Analysis - Lecture 4 - Outline...

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Unformatted text preview: Lecture 4 - Outline 1 Lecture 4: Process Analysis (Textbook: Chapter 4) Objectives A Systematic Approach Documenting the Process Flowcharts Service Blueprints Process Charts Evaluating Performance Redesigning the Process Managing Processes Process Analysis - Processes may be the least understood and managed aspect of a business - A firm can not gain a competitive advantage with faulty processes - Processes can be analyzed and improved using certain tools and techniques - Process analysis can be accomplished using a six-step blueprint Systematic Approach Documenting the Process - Three effective techniques for documenting and evaluating processes are (i) Flowcharts (ii) Service blueprints (iii) Process charts - They help you see how a process operates and how well it is performing - Can help find performance gaps Flow Charts Lecture 4 - Outline 2 Process Charts z An organized way to document all the activities performed by a person or group z Activities are typically organized into five categories Operation, z Transportation, Inspection, Delay, Storage, T Lecture 4 - Outline 3 Process Charts - The annual cost of an entire process can be estimated - It is the product of (i) Time in hours to perform the process each time (ii) Variable costs per hour (iii) Number of times the process is performed each year Example: If the average time to serve a customer is 4 hours, the variable cost is $25 per hour and 40 customers are served per year then the total labor cost is Evaluating Performance Chapter 5: Quality Customer satisfaction measures Error rate Rework or scrap rate Internal failure costs Chapter 6: Capacity Planning & Supplement C: Waiting Lines Processing time Total time from start to finish (throughput time) Setup time Operating expenses Capacity utilization Average waiting time Average number of customers or jobs waiting in line Chapter 7: Constraint Management Cycle time Idle time Chapter 8: Lean Systems Setup time Average waiting time Total time from start to finish (throughput time) Waste Data Analysis Tools Help identify causes of problems - Checklists Lecture 4 - Outline...
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This note was uploaded on 02/14/2011 for the course MGSC 395 taught by Professor Zimmer during the Fall '10 term at South Carolina.

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Lecture 4_Outline - Process Analysis - Lecture 4 - Outline...

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