Mbpfc4 - Managing Business Process Flows Anupindi, Chopra,...

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Unformatted text preview: Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 2006 Chapter 4: Flow-Time Analysis Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 2006 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 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 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 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 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 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 Process Architecture is defined and...
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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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Mbpfc4 - Managing Business Process Flows Anupindi, Chopra,...

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