1. Operations 6 473.31 Fall 2015 Bruce Duggan Providence University College

2. Summary Process analysis is a basic skill you need to understand how a business operates. If too many jobs are pumped into the process, the time it takes to complete a job will increase because the waiting time will increase. When a process is operating at capacity, the only way to take on more work without increasing the waiting time is to add more capacity. 6-20

3. Know The Answers To These Questions 1. Define the concept of a process. 2. How do you prepare a process flowchart? 3. What is the role of buffers in a process? 4. What are the different types of processes used by businesses? 5. What are the different measures of process performance? 6. What is Little’s law How is it used? 6-21

4. Process Analysis “A process” is: “any part of an organization that takes inputs and transforms them into outputs” Process analysis questions: How many customers can the process handle per hour? How long will it take to serve a customer? How much does the process cost?

5. Process Flowcharting Process flowcharting is: the use of a diagram to present the major elements of a process. Basic elements of a process flowchart: include tasks or operations flows of materials or customers decision points storage areas or queues An ideal methodology by which to begin analyzing a process 6-4

6. examples: giving an admission ticket to a customer installing an engine in a car examples: giving an admission ticket to a customer installing an engine in a car examples: How much change should be given to a customer? Which wrench should be used? examples: How much change should be given to a customer? Which wrench should be used? Process Flowcharting 6-5 tasks or operations decision points

7. examples: sheds lines of people waiting for a service examples: sheds lines of people waiting for a service examples: customers moving to a seat mechanic getting a tool examples: customers moving to a seat mechanic getting a tool LO2 Process Flowcharting 6-6 storage areas or queues flows of materials or customers

8. Process Flowcharting

9. Cycle Time and Utilization “cycle time”: the average time between completions of successive units “utilization” the ratio of the time that a resource is actually activated relative to the time that it is available for use

10. Process Terminology “buffering” a storage area between stages where the output of a stage is placed prior to being used in a downstream stage. 6-9

11. Process Terminology “starving” occurs when activities in a stage must stop because there is no work “bottleneck” a resource that limits the capacity or maximum output of the process “pacing” the fixed timing of the movement of items through a process “blocking” occurs when the activities in the stage must stop because there is no place to deposit the item just completed 6-10

12. Make to Stock/Make to Order “make-to-order” a process that is activated only in response to an actual order. “make-to-stock” a process that produces standard products that are stored in finished goods inventory

13. Make to Stock/ Make to Order

14. Other Types of Processes hybrid processes combine the features of both make-to-order and make-to-stock modularized products are assembled into different end products from standard modules (components) mass customization produces customized end products while at the same time using the efficiencies of a high volume manufacturing process

15. Measuring Process Performance

16. Little’s Law There is a long-term relationship between the inventory, throughput, and flow time of a production system in steady state. The relationship is: Inventory = Throughput rate × Flow time Flow time o the time that it takes a unit to flow through the process from beginning to end If demand averages 1,000 units per day and if it takes 20 days for a unit to flow through the factory, then the expected work-in-process in the factory would be 20,000 units.

17. End of Chapter 6

18. Problems for Chapter 6 Both do 1 & 2 If you have answers to these by Friday, I’ll show you what the textbook says the right answer is. Ken do problems 3 & 5 Hin do problems 4 & 6