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Mbpfc4 - Managing Business Process Flows Anupindi Chopra...

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Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 2006
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Chapter 4: Flow-Time Analysis Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 2006
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Process View of Organizations Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, 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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Flow Time Analysis Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Flow time Total time that a flow unit spends in a process » Theoretical flow time Minimal time to process a flow unit without waiting » Waiting time Total time in process a flow units waits to be processed Flow-time efficiency ratio of the theoretical flow time to the average total flow time Critical path Sequence of activities taking the longest total time
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Importance of Process Flow Time Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Shorter flow time shortens customer response time reduces inventory faster product development able to delay production closer to final sale integrates performance of all functions in firm
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Three Measures Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Average Flow time Average flow rate (a.k.a. throughput) Average inventory
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Value-Adding versus Non-Value-Adding Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Value-Adding increase economic value of flow unit in eyes of customer Non-value-adding activities do not directly add value may be required by current process structure » transport » support » testing Value-adding versus non-value-adding depends on context
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Process Flow Chart Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall Process flow chart graphical representation of elements of a process » decisions » activities » precedence relationships » buffers » information flows » events Value of tool is understanding
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