1. Process Analysis

2. Operations -- Prof. Juran
Outline
Process Analysis Defined
Key Terms and Metrics
Process Flowcharting
Example: Ouslander
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3. Operations -- Prof. Juran
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.
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4. Operations -- Prof. Juran
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?
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5. 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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6. Operations -- Prof. Juran
Types of Processes
Single-stage Process
Stage 1
Stage 2
Stage 3
Multi-stage Process
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7. 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
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8. 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
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9. 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
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10. 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
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11. 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
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12. Types of Processes (Continued)
Stage 1
Stage 2
Buffer
Multi-stage Process with Buffer
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13. Process Performance Metrics
Operation time = Setup time + Run time
Velocity = Throughput time
Value-added time
Throughput rate =
Cycle time
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14. Process Performance Metrics
Efficiency = Actual output
Standard Output
Productivity = Output
Input
Utilization = Time Activated
Time Available
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15. Operations -- Prof. Juran
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.
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16. Operations -- Prof. Juran
Process Improvement
Flow Time Reduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions
Elimination of Non-Value-Added Steps
Quality Improvement
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17. Operations -- Prof. Juran
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
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18. Operations -- Prof. Juran
Flowchart 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.
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19. Operations -- Prof. Juran
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.
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20. Example: Flowchart of Student Going to School
Yes
Go to school today?
Drive to school
Walk to class No
Goof off 4

21. Flow Chart of a Relationship
Man gets angry
No sex
No sex for a long time
The man and the
woman agree to
have a date
At the end of the date,
the man makes
sexual advances
Woman changes her mind
Man nags about the
reasons why the woman
doesn’t want to have sex
Man tries again;
Asks for a second date
Woman is more
relaxed this time
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
Man falls asleep
Woman suggests making
dinner together
Man approaches
woman sexually
Man pretends
to be hungry
After cooking for
hours, they eat
Woman melts
Man discovers how much fun
they have even without sex
Woman agrees
After the bath the
man suggests opening a
bottle of Champagne
Man almost drinks the
whole bottle himself
Man suggests
a bath together
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
Mans knee heals rapidly and he
suggests sex
Man suggests a trip to
Venice
Man suggests a refreshing walk,
hoping that it will relax her
Man suggests
a short cut
SEX
Woman gets excited and starts to
go through brochures
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22. Operations -- Prof. Juran
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
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23. Operations -- Prof. Juran
Kristin’s Cookies
Read the Harvard Case ( ).
Answer the six key questions at the end.
Also:
What is the cycle time, throughput time, and capacity of each operation and the whole production system? Hand in this analysis at the beginning of class.
Draw a Gantt chart for Kristen's operation assuming orders are for two-dozen cookies. (The Gantt chart does not have to be handed in.)
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24. In-class Problem: Ouslander Assembly
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25. Operations -- Prof. Juran
Summary
Process Analysis Defined
Key Terms and Metrics
Process Flowcharting
Example: Ouslander
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