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Chapter 5

Process Analysis
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OBJECTIVES
 Process Analysis

 Process Flowcharting

 Types of Processes

 Process Performance Metrics

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Process 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
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Process Flowcharting
Defined
 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
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Flowchart Symbols
Purpose and Examples
Tasks or operations Examples:
Examples: Giving
Givingan an
admission
admissionticket
ticket to
toaa
customer,
customer, installing
installingaa
engine
enginein
inaacar,
car, etc.
etc.

Decision Points Examples:

Examples: How
Howmuch
much
change
changeshould
shouldbebe
given
givento
toaacustomer,
customer,
which
whichwrench
wrenchshould
should
be
beused,
used, etc.
etc.
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Flowchart Symbols
Purpose and Examples
Storage areas or Examples:
Examples: Sheds,
Sheds,
queues lines
linesof
of people
peoplewaiting
waiting
for
foraaservice,
service, etc.
etc.

Flows of Examples:
Examples: Customers
Customers
materials or moving
movingto toaaseat,
seat,
customers mechanic
mechanicgetting
gettingaa
tool,
tool, etc.
etc.
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Example: Flowchart of Student

Going to School

Go to Yes
Drive to Walk to
school
school class
today?

No

Not go
to
School
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Types of Processes

Single-stage Process

Stage 1

Multi-stage Process

Stage 1 Stage 2 Stage 3

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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
Multi-stage Process with Buffer
Buffer
Stage 1 Stage 2
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Other 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
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Other Process Terminology

(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
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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
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Process 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
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Process Performance Metrics

(Continued)
 Cycle time = Average time between
completion of units

 Throughput rate = 1 .
Cycle time
 Efficiency = Actual output
Standard Output
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Process Performance Metrics

(Continued)

 Productivity = Output
Input

 Utilization = Time Activated

Time Available
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Cycle Time Example

Suppose
Suppose you
you had
had to
to produce
produce 600
600 units
units in
in 80
80
hours
hours to
to meet
meet the
the demand
demand requirements
requirements of of aa
product.
product. What
What is
is the
the cycle
cycle time
time to
to meet
meet this
this
demand
demand requirement?
requirement?

Answer:
Answer: There
There are
are 4,800
4,800 minutes
minutes (60(60
minutes/hour
minutes/hour xx 80
80 hours)
hours) in
in 80
80 hours.
hours. So So the
the
average
average time
time between
between completions
completions would
would have
have
to
to be:
be: Cycle
Cycle time
time == 4,800/600
4,800/600 units
units == 88 minutes.
minutes.
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Process Throughput Time

Reduction

 Perform activities in parallel

 Change the sequence of activities

 Reduce interruptions