1. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 1 Process-Flow Analysis Chapter 7

2. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 2 Outline Systems Thinking The Process View of Business Flowchart Analysis Materials-Flow Analysis Information-Flow Analysis Service Blue Printing Using Process-Flow Analysis Business Process Reengineering (BPR)

3. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 3 Systems Thinking Definition of a “system” Application of systems thinking to businesses Role of “cross functional” teams in systems analysis

4. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 4 Flowchart Analysis Targets process elements for change Steps in process flow chart analysis

5. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 5 Targets process elements for change Raw materials Product (output) design Job design Processing steps used Management control information Equipment or tools Suppliers

6. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 6 Steps in process flow chart analysis  Select a process  Form a team or individual as the project leader  Decide on the objectives of the analysis  Define customers and suppliers  Describe the existing transformation process  Develop improved process design  Gain management approval of the improved design  Implement the new process design

7. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 7 Materials-Flow Analysis Objectives of MFA Key concepts and tools: –Throughput time –Assembly drawing (Figure 7.2) Figure 7.2Figure 7.2 –Assembly (Gozinto) chart (Figure 7.3) –Routing sheet (Figure 7.4) –Symbols used in Process Flow Chart (Figure 7.5) Figure 7.5Figure 7.5 –Flow Processing Chart (Figure 7.6)

8. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 8 Assembly Drawing for a Tricycle (Figure 7.2)

9. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 9 Symbols for Flow-Process Chart Operation (a task or work activity) Inspection (an inspection of the product for quantity or quality) Transportation (a movement of material from one point to another) Storage (an inventory or storage of materials awaiting the next operation) Delay (a delay in the sequence of operations)

10. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 10 Questions to Ask in FPA What does the customer need?, 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? ….

11. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 11 Information Flow Analysis Types of information flow: –Information is the product of operation –Information is used for management control Symbols used in information flow analysis (Figure 7.9)

12. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 12 Symbols for Information Processing Flow Chart Origin of record (used to identify an operation that involves the addition of significant data to a blank form) Subsequent writing (a step in which significant data is added to an existing record) Handling operations (any nonproductive step, such as sorting, stapling, or folding) Move (a step in which the record is transported from one person, department, or work place to another) Inspection (used when the step involves examination of the quality or clearness of a record) Delay, file, and destroy (identifies a point or time at which the record is inactive

13. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 13 Sociotechnical Approach to PFA

14. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 14 Business Process Reengineering (BPR) BPR defined (Hammer and Champy) BPR Philosophy Principles of BPR

15. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 15 Service Blue Printing Definition Example of SBP (Figure 7.10) SBP and “moments of truth” Ask the same questions as in PFA (what, who, where, when, and how)

16. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 16 BPR Philosophy Does the reengineering consultant see the glass as half full or half empty? Neither. Does the reengineering consultant see the glass as half full or half empty? Neither. It’s the wrong size of glass! It’s the wrong size of glass!

17. Irwin/McGraw-Hill  The McGraw-Hill Companies, Inc. 2004 17 Principles of BPR Organize around outcomes Have the people who do the work, process their own information Put the decision point where work is performed and build control into the process Eliminate unnecessary steps in the process