Chapter 5 questions – 327

wtfbm69

IPPTChap006.pdf

Home >Business & Finance homework help >Management homework help >Chapter 5 questions – 327

Chapter 6:

Process-Flow Analysis

Operations Management in the

Supply Chain: Decisions and Cases,

6th edition

6-2

Chapter 6 Outline

• Process Thinking

• The Process View of Business

• Process Flowcharting

• Process-Flow Analysis as Asking Questions

• Measuring Process Flows

• Measuring Process Flows at Pizza U.S.A.

• Process Redesign

6-3

Process Thinking

• Process thinking: All work is a process.

• System: Collection of interrelated elements, with

Whole > Sum of parts

• Apply systems thinking to businesses

•Defining system boundaries

• Use cross-functional teams for systems analysis

•Include all affected functions

6-4

Process View of Business

Marketing Operations Finance

CEO

6-5

Process Flowcharting

• Process flowcharting: Creating a visual diagram

to describe (represent) a transformation process

• Also called (or similar to):

• Process mapping

• Flow-process charting

• Service blueprinting

• Value stream mapping

6-6

Process Flowcharting

• Purpose: To describe a process visually to find ways

of improving the current process.

• Find repetitive operations

• Identify bottlenecks

• Describe directions and distances of flows

(people, material and information)

• Reduce waste

• Required for certifications such as ISO9000

6-7

Process Flowcharting 1. Select a transformation process to study.

2. Form a team to develop flowchart & for analysis (to

improve the system).

3. Specify the boundaries of transformation process.

4. Identify and sequence the operational steps.

5. Identify the performance metrics for the steps.

- e.g., time to complete each step

6. Draw the flowchart, using consistent symbols.

6-8

Common Flowcharting Symbols

Process, operation, activity, or task

Decision or evaluation

Flow of work (inventory, customers)

Terminator: “START” “END”

6-9

Flowchart Example: Selecting a Supplier (Figure 6.2)

6-10

Symbols for Flow-Process Chart

Operation - task or work activity

Inspection - inspection of product for

quantity or quality

Transportation - movement of material from

one point to another

Storage - inventory or storage of materials

awaiting next operation

Delay - delay in the sequence of operations

6-11

Flow-Process

Chart Example:

Picking Operations

at Grocery Store

Distribution Center

(Figure 6.5)

6-12

Questions to Ask in Process-Flow Analysis

• What does the customer need? What operations are necessary? Can some operations be eliminated, combined, or simplified?

• Who is performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs?

• Where is each operation conducted? Can layout be improved?

• When is each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks?

• How is the operation done? Can better methods, procedures, or equipment be used?

6-13

Questions to Ask in Process-Flow Analysis

• Flow balanced? Where is the bottleneck? Are all steps necessary? How jumbled is the flow?

• Time How long to produce one unit? Can it be reduced? Cycle time? Excessive set-up time? Excessive waiting time?

• Quantity Theoretical production amount? How easy to change? How many units actually produced?

• Quality Historical defect rate? Which step contributes to defect rate? Where do errors occur?

• Cost to produce one unit? What are cost buckets for one unit? Can some of the buckets be reduced or eliminated?

6-14

Measuring Process Flows

• Capacity of a system = capacity of the most constraining resource

→ This resource is called the bottleneck. • The flow rate of a process = minimum (Supply, Demand,

Capacity)

• Throughput time = from when processing begins until product/service is finished

6-15

Measuring Process Flows

• Little’s Law

• Relates number of items in the system to arrival rate and throughput time.

• Calculation:

I = T x R

I = average number of things in the system

T = average throughput time

R = average flow rate into the process

• Assumes system is in a ‘steady state.’

6-16

Pizza U.S.A. book example

Activity Minutes Who/What

Take order 1 Assistant

Make crust 3 Chef

Prepare/add

ingredients

2 Chef

Bake pizza 24 Oven

Cut/box pizza 1 Assistant

Take payment 1 Assistant

Details: Assume all toppings added to every pizza

Two employees working at a time

Oven can bake up to 4 pizzas at a time

6-17

Map the process

Take

order

Make

crust

Prep/add

ingredients

Bake

pizza

Take

payment

Cut/box

pizza

Start

End

1 min. 3 min. 2 min.

24 min.1 min.1 min.

6-18

What is the throughput time?

Throughput time = time to complete one

product or service

Pizza throughput time?

1+3+2+24+1+1 = 32 min.

6-19

What is process capacity? 3 resources:

Assistant takes 3 (1+1+1) min. per pizza, can process

20 pizzas per hour.

Chef takes 5 (3+2) min. per pizza, can process

12 pizzas per hour.

Oven takes 6 (24/4) min. per pizza, can process

10 pizzas per hour.

Therefore, process capacity (flow rate) = 10

pizzas/hour

6-20

What is the process bottleneck?

The OVEN is the slowest activity….. that

determines process capacity.

The process cannot produce more than

the slowest activity (flow rate = 10

pizzas/hr).

6-21

Process Redesign

• Identify, analyze, improve critical

processes (may cross organizational

boundaries).

• Extreme cases: Complete process

reconfiguration (eliminating many steps).

• Business Process Reengineering (BPR)

6-22

Principles of Process Redesign

• Organize around outcomes, not tasks.

• Have the people who do the work process their own

information (avoid handoffs).

• Put the decision point where work is performed, and

build control into the process.

• Decisions made at lowest possible level.

• Eliminate unnecessary steps in the process.

• Simplify, eliminate non-value-added activities.

6-23

Chapter 6 Summary