Process Analysis Outline Process Analysis Defined Key Terms

Process Analysis

Outline • • Process Analysis Defined Key Terms and Metrics Process Flowcharting Example: Ouslander Operations -- Prof. Juran 2 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis A set of concepts, tools, and metrics for describing, planning, controlling managing, and improving processes. A process is any part of an organization that transforms inputs into outputs, preferably adding value. Operations -- Prof. Juran 3 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Layout • Process Layout – Traditional Approach – Aimed at Economies of Scale and Specialization • Product Layout – Basis for Cellular Manufacturing, Applied in some services – More customer focused? – Behavioral benefits among workers? Operations -- Prof. Juran 4 ©The Mc. Graw-Hill Companies, Inc. , 2004

Other 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 Operations -- Prof. Juran 5 ©The Mc. Graw-Hill Companies, Inc. , 2004

Types of Processes Single-stage Process Stage 1 Multi-stage Process Stage 1 Operations -- Prof. Juran Stage 2 Stage 3 6 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis Terms • Level of Analysis: The scope of our study; a single machine, an assembly line, a factory, etc. • Cycle Time: The average time between completions of successive units – Typically used at the lower levels of analysis Operations -- Prof. Juran 7 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis Terms • Utilization: The ratio of the time that a resource is actually activated relative to the time that it is available for use • Flow Time: The time it takes for a single customer’s order to proceed through the process from start to finish. Sometimes called Throughput Time • Throughput: The volume of production passing through the process over some time period – Typically used at the higher levels of analysis Operations -- Prof. Juran 8 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis Terms • 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 is case the employee represents the limited capacity causing the bottleneck. • Pacing – Refers to the fixed timing of the movement of items through the process Operations -- Prof. Juran 9 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis Terms • 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 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 Operations -- Prof. Juran 10 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Analysis Terms 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 Bottlenecks, buffers, blocking, and starving are key concepts in Just-in-Time systems, which we will study later in the course Operations -- Prof. Juran 11 ©The Mc. Graw-Hill Companies, Inc. , 2004

Types of Processes (Continued) Multi-stage Process with Buffer Stage 1 Operations -- Prof. Juran Stage 2 12 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Performance Metrics • Operation time = Setup time + Run time • Velocity = Throughput time Value-added time • Throughput rate = 1. Cycle time Operations -- Prof. Juran 13 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Performance Metrics • Efficiency = Actual output Standard Output • Productivity = Output Input • Utilization = Time Activated Time Available Operations -- Prof. Juran 14 ©The Mc. Graw-Hill Companies, Inc. , 2004

Cycle 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. Operations -- Prof. Juran 15 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Improvement • Flow Time Reduction – Perform activities in parallel – Change the sequence of activities – Reduce interruptions • Elimination of Non-Value-Added Steps • Quality Improvement Operations -- Prof. Juran 16 ©The Mc. Graw-Hill Companies, Inc. , 2004

Process Flow Diagram • A process flow diagram (a. k. a. flow chart) is a graphical tool for describing the major elements of a process • The 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 Operations -- Prof. Juran 17 ©The Mc. Graw-Hill Companies, Inc. , 2004

Flowchart Symbols Tasks or operations Decision Points Operations -- Prof. Juran Examples: Giving an admission ticket to a customer, installing a engine in a car, etc. Examples: How much change should be given to a customer, which wrench should be used, etc. 18 ©The Mc. Graw-Hill Companies, Inc. , 2004

Storage areas or queues Examples: Sheds, lines of people waiting for a service, etc. Flows of materials or customers Examples: Customers moving to a seat, mechanic getting a tool, etc. Operations -- Prof. Juran 19 ©The Mc. Graw-Hill Companies, Inc. , 2004

Example: Flowchart of Student Going to School Go to school today? Yes Drive to school Walk to class No Goof off ©The Mc. Graw-Hill Companies, Inc. , 2004

Man gets angry Flow Chart of a Relationship The man and the woman agree to have a date Woman changes her mind At the end of the date, the man makes sexual advances No sex Man nags about the reasons why the woman doesn’t want to have sex Woman is more relaxed this time No sex for a long time Man tries again; Asks for a second date Man guesses that the time is right and approaches the woman sexually Man trips on the edge of the carpet on purpose to show the woman how vulnerable he is Woman starts to get tired Woman suggests making dinner together Man falls asleep Man approaches woman sexually After cooking for hours, they eat Man discovers how much fun they have even without sex Man pretends to be hungry Man suggests a bath together Woman melts After the bath the man suggests opening a bottle of Champagne Man almost drinks the whole bottle himself Woman agrees Man suggests a refreshing walk, hoping that it will relax her Man suggests a short cut Mans knee heals rapidly and he suggests sex Man suggests a trip to Venice Operations -- Prof. Juran Woman gets excited and starts to go through brochures SEX After a glass of wine the man Finds courage to say what he’s been trying to say all evening and makes a confession of love 21 ©The Mc. Graw-Hill Companies, Inc. , 2004

Gantt Chart Vertical Axis: Always Activities or Jobs Horizontal bars used to denote length of time for each activity or job. Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Horizontal Axis: Always Time Operations -- Prof. Juran 22 ©The Mc. Graw-Hill Companies, Inc. , 2004

Milford Primary Care (A) One write-up for the whole team; include everyone’s names. Turn in at the start of class Sunday January 7. Operations -- Prof. Juran 23 ©The Mc. Graw-Hill Companies, Inc. , 2004

Summary • Process Analysis Defined • Key Terms and Metrics • Process Flowcharting Operations -- Prof. Juran 24 ©The Mc. Graw-Hill Companies, Inc. , 2004