Mbpfc3 - 1 Managing Business Process Flows Anupindi,...

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Unformatted text preview: 1 Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 1999 2 Chapter 3: Process Flow Measures Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 1999 Process View of Organizations Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 1999, Upper Saddle River, NJ: Prentice Hall Inputs Outputs Goods Services Labor & Capital Information structure Network of Activities and Buffers Flow units (customers, data, material, cash, etc.) Resources Process Management 4 Essence of Process Flow Process-flow measures Together capture essence of process flow Flow time Flow rate or throughput Inventory 3 key questions On average how much time is a flow unit in a process? On average how many flow units / time pass through the process? On average, how many flow units are within the process? 5 Flow Time Flow units are either Undergoing an activity Waiting in a buffer to undergo an activity Flow time is total time spent by a flow unit within process boundaries Flow time varies from unit to unit Average flow time average across all flow units T 6 Flow Rate Flow rate the number of flow units that flow through a specific point of the process per unit of time (t) Instantaneous flow rate R i (t) is input flow rate R o (t) is output flow rate R i (t) = R o (t) = throughput rate 7 Figure 3.1 A Process with 2 Entry Points Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 1999, Upper Saddle River, NJ: Prentice Hall Flow rate and stability A stable process is one in which, in the long run, average inflow rate is the same as average outflow rate. Process R i,1 ( t ) R i,2 ( t ) R o (t) 8 TWO Exit Points Scrap Process R i (t) R 0,2 (t) R o,1 (t) R i (t) = R 0,1 (t) + R 0,2 (t) 9 Inventory Inventory Total number of flow units present within process boundaries At time t, process inventory is I(t) All flow units that entered the process, but have not exited the process General view of inventory is to include all flow units within process boundaries 10 3.3 Flow Time, Flow Rate, and Inventory Dynamics Inventory dynamics Difference between inflow and outflow rates Instantaneous inventory accumulation (buildup) rate R(t) = R i (t) R o (t) During a time period (t 1 , t 2 ) Inventory change = I(t 2 )-I(t 1 )= R(t 2-t 1 ) Inventory buildup diagram depicts inventory fluctuation over time Example 3.2 Stability Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Is MBPF garage manufacturing stable?...
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This note was uploaded on 04/30/2011 for the course MBA 806 taught by Professor Fredendall during the Spring '08 term at Clemson.

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Mbpfc3 - 1 Managing Business Process Flows Anupindi,...

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