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9. 9
Process Analysis TermsProcess Analysis Terms
Process: Is any part of an organization that
takes inputs and transforms them into outputs.
Cycle Time: Is the average successive time
between completions of successive units.
Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use

10. 10
Process FlowchartingProcess Flowcharting
DefinedDefined
Process flowcharting is the use of a diagram to
present the major elements of a process.
The basic elements can include tasks or
operations, flows of materials or customers,
decision points, and storage areas or queues.
It is an ideal methodology by which to begin
analyzing a process.

11. 11
Flowchart SymbolsFlowchart Symbols
Tasks or
operations
Examples: Giving an
admission ticket to a
customer, installing a
engine in a car, etc.
Decision
Points
Examples: How much
change should be given
to a customer, which
wrench should be used,
etc.
Purpose and Examples

12. 12
Examples: Sheds, lines
of people waiting for a
service, etc.
Examples: Customers
moving to a seat,
mechanic getting a tool,
etc.
Storage areas
or queues
Flows of
materials or
customers
Purpose and Examples
Flowchart SymbolsFlowchart Symbols

13. 13
Example: Flowchart of Student Going to Example: Flowchart of Student Going to
SchoolSchool
Yes
No
Go
off
Go to
school
today?
Walk to
class
Drive
to
school

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Types of Processes Types of Processes
Stage 1
Stage 1 Stage 2 Stage 3

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Types of Processes (Continued)Types of Processes (Continued)
A buffer refers to a storage area between
stages where the output of a stage is
placed prior to being used in a downstream
Stage.
Stage 1 Stage 2
Buffer

16. 16
Other Process TerminologyOther Process Terminology
Blocking
Occurs when the activities in a stage must stop because
there is no place to deposit the item just completed.
If there is no room for an employee to place a unit of work
down, the employee will hold on to it and not able to
continue working on the next unit.
Starving
Occurs when the activities in a stage must stop because
there is no work .
If an employee is waiting at a work station and no work is
coming to the employee to process, the employee will
remain idle until the next unit of work comes.

17. 17
Other Process Terminology Other Process Terminology
(Continued)(Continued)
Bottleneck
Occurs when the limited capacity of a process causes work to
pile up or become unevenly distributed in the flow of a process.
If an employee works too slow in a multi-stage process, work
will begin to pile up in front of that employee. In this case, the
employee represents the limited capacity causing the bottleneck.
Pacing
Refers to the fixed timing of the movement of items through the
process.

18. 18
Other Types of ProcessesOther Types of Processes
Make-to-order
Only activated in response to an actual order
Both work-in-process and finished goods
inventory kept to a minimum
Make-to-stock
Process activated to meet expected or forecast
demand
Customer orders are served from target
stocking level

19. 19
Process Performance MetricsProcess Performance Metrics
Operation time = Setup time + Run
time
Throughput time = Average time for a
unit to move through the system
Velocity = Throughput time
Value-added time

20. 20
Process Performance Metrics (Continued)Process Performance Metrics (Continued)
Cycle time = Average time between
completion of units
Throughput rate = 1 .
Cycle time
Efficiency = Actual output
Standard Output

21. 21
Process Performance Metrics Process Performance Metrics
(Continued)(Continued)
Productivity = Output
Input
Utilization = Time Activated
Time Available

22. 22
Cycle Time ExampleCycle Time Example
Suppose you had to produce 600 units in 80 hours to
meet the demand requirements of a product. What is
the cycle time to meet this demand requirement?
Answer: There are 4,800 minutes (60 minutes/hour x
80 hours) in 80 hours. So the average time between
completions would have to be: Cycle time =
4,800/600 units = 8 minutes.

23. 23
Process Throughput Time Process Throughput Time
ReductionReduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions

24. 24
.
Equipment
Design of work systems

Introduction
Process Selection refers to the way an organization
chooses to produce its good or services
Volume Expected output
Variety
How much

Major implications

Capacity planning
Layout
of
facilities
Flexibility

25. 25
Process Strategies
3.ProcessFlexibility
The degree to which
the system can be
adjusted to changes in
processing
requirements due to
such factors as
changes in product or
service design,
changes in volume
processed, and
changes in
technology.
1. Make or Buy
Decisions.
The extent to which an
organization will
produce goods or
provide in house as
opposed to relying on
an outside organization
to produce or provide
them.
2. Capital
Intensity.
The mix of
equipment
and labor
will be used
by the
government
Technology
Volume DesignTechnology
Adjust to
changes

26. 26
Process Types
2. Intermittent
Processing.

Flexible Manufacturing System.
Numerically Controlled Machines
Computer Aided Manufacturing
Robot
Manufacturing Cell.
3. Automation
1. Continuous
Processing
Batch Processing
Repetitive Processing.
Job Shop

27. 27
. Very high volumes of non-discrete goods
.Advantages
– Lower variable cost per unit
– Lower but more specialized labor skills
– Easier production planning and control
– Higher equipment utilization (70% to 90%)
. Disadvantages
Examples:- A continuous process. An oil
refinery
performs a continuous process, breaking down
crude oil into petroleum, chemicals, and many
other products
,Processing of chemicals, photographic film,
newsprint.
– Lower product flexibility
– More specialized equipment
– Usually higher capital investment

28. 28
Examples:-A repetitive process: Binney& Smith,
maker
of Crayola products, produces nearly 3 billion
crayons
each year in its Easton, PA, manufacturing
facility,
Automobiles, televisions,
computers ,calculators, cameras and
video equipments
• More structured than process-focused, less
structured than product focused
• Enables quasi-customization
• Using modules, it enjoys economic advantage
of continuous process, and custom
advantage of low volume, high-variety
model
Repetitive/assembly
line
• High volumes of standardized goods or services

29. 29
Moderate volume
A system used to produce moderate volumes
of similar items.
Examples
1. A batch process: Food is prepared, one
menu item at a time, in the kitchen of the
Spago Restaurant in the
Forum at Caesar’s Palace, Las Vegas,
Nevada.
2. Paint, ice cream, canned vegetables
3. Magazines, newspapers, textbooks and
user manuals.
Batch

30. 30
– Greater product flexibility
– More general purpose
equipment
– Lower initial capital
investment
. Disadvantages
– High variable costs
– More highly trained personnel
– More difficult production
planning & control
– Low equipment utilization
(5% to 25%)
Example:- A job shop process: A mid western
hospital medical team performs a diagnostic
procedure involving a cardiac
catheterization. Paint, ice cream, canned
vegetables,
Magazines, newspapers, textbooks and user
manuals.
Job shop
.Small
scale
.Advantages

31. 31
Product -Process
Matrix

32. 32
Inefficient operations For Example: High Cost Bottlenecks
Changes in the design of products or services
The introduction of new products or services
Accidents-Safety hazards
It helps to determine long term efficiency.
It establishes company’s competitive priorities in regards to capacity,
process
flexibility
It helps organization to achieve strategic advantage that support
differentiation,
low cost and fast repose
Need For Layout DecisionNeed For Layout Decision