03_Posting_-_Process_Analysis

03_Posting_-_Process_Analysis - Process Analysis If you...

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09/12/2011 1 Process Analysis If you can’t describe what you’re doing as a If you can’t describe what you’re doing as a process, you don’t know what you’re doing. process, you don’t know what you’re doing. W.E. Deming W.E. Deming
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09/12/2011 2 What is a process? A process is a series of independent tasks that transform an input into output 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. Wachovia transforms loan requests into actual money
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09/12/2011 3 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 What are the relevant performance measures? How can we analyze a process?
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09/12/2011 4 What is its capacity ? How many units per unit time go through each task? or through 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 for a unit to get through the system? Process Analysis: performance measures Assume a process is in place. What do we need to measure in order to understand how efficient it is? Task 1 Task 2 Task 3
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09/12/2011 5 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 Decision point
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09/12/2011 6 Example Flowchart – Class Attendance No Go to class today? Yes
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09/12/2011 7 Types of processes (examples of flowcharts) Task 1 Task 2 50% FGI Demand Task 2 Task 1 50% FGI Task 3 Demand
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09/12/2011 8 Some more vocabulary… Buffering : Keep some inventory between stages Starving : Stoppage of activity because of lack of material Blocking : Stoppage of flow because there is no storage place 0/1 1/1 1/2 1 unit in buffer of capacity 2 1/1 0/1 0/2 empty buffer 1/1 1/1 2/2 full buffer
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09/12/2011 9 Make-to-order vs. Make-to-stock Task 1 Task 2 FGI 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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09/12/2011 10 Process Analysis: basic assumptions Ignore variability: If a setup takes one hour 50% of the time and two hours 50% of the time, then we assume that setup takes 1.5 hr. Evaluate using long-run averages:
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This note was uploaded on 12/28/2011 for the course SCM 372 taught by Professor Cook during the Fall '11 term at Michigan State University.

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03_Posting_-_Process_Analysis - Process Analysis If you...

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