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

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1 Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 1999
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2 Chapter 3: Process Flow Measures Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 1999
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Process View of Organizations Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 1999, Upper Saddle River, NJ: Prentice Hall A process is a transformation of inputs into outputs.” (p. 4) Process structure has 5 elements Inputs Outputs Goods Services Labor & Capital Information structure Network of Activities and Buffers Flow units (customers, data, material, cash, etc.) Resources Process Management
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4 Process Flow Every process Transforms inputs into outputs for customers Strategic position What product attributes to provide Operational effectiveness How well processes provide product attributes Flow unit is a unit flowing through a process 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?
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5 Little’s Law Flow time is total time a flow unit is in process Flow rate = Throughput Little’s Law: Inventory = Throughput x Flow Time I = R x T Inventory  I [units] Flow rate/Throughput  R [units/hr] ... ... ... ... ... Flow Time T [hrs]
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6 Flow Rate (Throughput Rate) Flow rate the number of flow units that flow through a specific point of the process per unit of time (t) » R i (t) is input flow rate » R o (t) is output flow rate » R i (t) = R o (t) = throughput rate Stable process one in which, in the long run, average inflow rate is the same as average outflow rate
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7 Flow Time & Inventory Average flow time average across all flow units that exit the process during a specific span of time » average time needed to convert inputs into outputs T Inventory number of flow units present within process boundaries at time t » includes raw material, work-in-process & finished goods I(t)
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8 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) i,2 o
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9 3.5 Process Analysis Answers 3 Questions On average, how many flow units pass through the process per unit of time? Average flow rate or throughput of the process is the average number of flow units that pass through the process per unit of time On average, how much time does a typical flow unit spend within process boundaries? Average flow time for a flow unit through the process is the average time that a typical flow units spends within process boundaries On average, how many flow units are within process boundaries at any point in time?
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This note was uploaded on 04/07/2008 for the course MGT 390 taught by Professor Fredendall during the Fall '07 term at Clemson.

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

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