1. MBA 8452 Systems and Operations Management
Process Analysis

2. Process Analysis Process Analysis Process Analysis Flow charting
Types of Processes
Process Performance
Job Design
Work Measurements
Incentive Plans

3. What Is A Process?
Process is the basic building block of an operations/production system
A process is a collection of activities that transforms inputs into outputs that are valuable to the customer

4. Process Flowchart
Diagram showing the major elements of a process and their interconnections
tasks or operations
flows of materials or customers
storage areas or queues.

5. Process Flowchart Symbols
Storage areas or queues
Tasks or operations
Flows of materials or customers
Decision Points

6. Process Flowchart Examples: Hamburger Making Process
1. McDonald’s
Cook
Raw
material
Assemble
Customer
order
Finished
burgers
Deliver
2. Burger King
Cook
Raw
material
Assemble
Customer
order
Finished
burgers
Deliver
WIP
Custom or
Standard? C S
3. Wendy’s
Customer
order
Cook
Raw
material
Assemble
Chili
Deliver

7. Types of Processes Single-stage vs. Multistage Single-stage Process
Multistage Process

8. Types of Process Multistage Process with Buffer
What might happen without buffer?
Blocking
Starving
Bottleneck

9. Types of Process Make-to-stock vs. Make-to-order
Deliver
Finished
goods
Customer
order
Make-to-stock Process
Make-to-order Process
Make
Deliver
Customer
order

10. Operation time = Setup time + Run time
“You can not improve something you can’t measure” Process Performance Metrics
Operation time = Setup time + Run time
Throughput time = Average time for a unit to move through the system
Cycle time = Average time between completion
of units
Throughput rate =
Velocity (throughput ratio) = 1
Cycle time
Throughput time
Value-added time

11. Efficiency = Productivity = Utilization = Actual output
“You can not improve something you can’t measure” Process Performance Metrics (cont.)
Efficiency =
Productivity =
Utilization =
Actual output
Standard output
Output
Input
Time activated
Time available

12. Little’s Law
Work-in-process
Throughput time =
Throughput rate

13. Process Performance Metrics Example 1
5 min/unit
8 min/unit
3 min/unit
Stage 1
Stage 2
Stage 3
(Assume 8-hour working day)
Cycle time = 8 minutes
Throughput rate = 60 units/day
Throughput time = 19 minutes

14. Process Performance Metrics Example 2
Stage 1
Stage 2
Buffer
5 min/unit
8 min/unit
Stage 3
3 min/unit
(Assume 8-hour working day)
Cycle time = 8 min
Throughput rate = 60 units/day
Throughput time = = 160 min

15. Process Throughput Time Reduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions