Service management chapter 5

Lecture 4

Process Flow
Analysis

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 Learning Objectives

• Describe the critical facility design features.

• Draw a process flow diagram.
• Identify the bottleneck operation in a product
layout and rebalance for increased capacity.
• Use operations sequence analysis to minimize
flow (flow of people, materials, information)-
(travel) distance in a process layout.

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 Course Structure

Module 1:
Introduction & Module 2: Capacity Module 3: Product & Module 4: Control &
Operational Planning Service Delivery Sustainability
Planning

Process
Introduction Flow Service Operations
to OM Delivery Strategy
Analysis

Product & Lean & Six Distribution &

Inventory Supply Chain
Service Sigma Strategy
Design Management

Facility Demand & Globalization

Process Location Revenue &
Structures Planning Management Sustainability

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 Facility Design & Layout

The layout problem involves finding the best

arrangement of the physical components of the
service system possible within the time, cost and
technology constraints of the situation. (Layout is the
arrangement of the service delivery system.)

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 Facility Layout & Design (Cont.)

The objectives of designing a good layout are:

1. Minimize movement of people, materials and
paperwork to increase efficiency
2. High utilization of space but balanced with possibility
for expansion
3. Flexibility for rearrangement, services and growth
4. Satisfactory physical environment for workers
e.g., good lighting, temperature, noise level, etc.
5. Convenience for customers during the service
6. Attractive appearance of room office arrangements
for management and customers

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 Process Flowchart

A process flowchart is a visual aid

used by industrial engineers when
analyzing production systems

to identify opportunities
for improvement
in process efficiency.

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Process Flowchart symbols
Process Flowchart example
 Process Flow Analysis

I. Diagram a process
II. Identify bottleneck operation
III. Determine system capacity
IV. Make improvements

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 Eg. Drivers License Renewal Process

• The driver’s license office is under pressure to increase

its productivity to accommodate 120 applications per hour
with the addition of only one clerk to its present staff.
• See the following Table: there are six activities and
activity 1 must be performed first, and activity 6 must be
the last step conducted by a uniformed officer.
Activity Description Cycle Time (Sec.)
1 Review application for correctness 15
2 Process and record payment 30
3 Check for violations and restrictions 60
4 Conduct eye test 40
5 Photograph applicant 20
6 Issue temporary license 30
Cycle time = the average service time to perform the activity

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 License Renewal Process – Process Flow Diagram
Automobile Driver’s License Office – Scenario #1

Review Payment Violations Eye Test Photograph Issue license

IN 1 2 3 4 5 6 OUT
240 120 60 90 180 120
15 30 60 40 20 30

Activity
numbers
Flow rate
per hour
Cycle Time
in seconds

Activity Description Cycle Time (Sec.)

1 Review application for correctness 15
2 Process and record payment 30
3 Check for violations and restrictions 60
4 Conduct eye test 40
5 Photograph applicant 20
6 Issue temporary license 30
60
What is the current flow rate: _________ applicants per hour?
Where is the bottleneck? ____________________
Check for violations and restrictions
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 Automobile Driver’s License Office (Scenario #2)

• Assume that “violations checking” can now be done on

computer terminal, with that activity now taking 30
seconds instead of 60 seconds.

In Out

The maximum capacity is now ____90 applicants per hour.

The new bottleneck is the process of _____________

Conduct eye test

What is our objective: 120 by adding one staff

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 Automobile Driver’s License Office
(Scenario #3)
1 2 3 4 5 6
240 120 60 90 180 120
15 30 60 40 20 30

1,4 3
In 65 60
55 60
2 5 6
120 180 120 Out
30 20 30

1,4 3
The new work flow design is to balance
In 65 60 the load & maximize the flow rate.
55 60

§ From Scenario #1, by adding one server on activity 3

& combining operations 1 & 4, the system can now
achieve a flow rate of ________
120 applicants per hours.
§ Identify the bottleneck(s): ________________
Process 2, 3 & 6
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 How to make
process flow improvement?

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 How to make
process flow improvement?
• Identify the bottleneck process
• Division of labor & job rotation
Ø Combine the bottleneck process with other
process(es);
Ø Then reallocate resources for sharing the
workload.
• Use of technology
• Introduce self-service

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How about this
reengineered
result è

Cycle time = 165/6 = 27.5

Flow rate = 3600/27.5 = 131

1–16
Process Layout & the Relative
Location Problem

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 Environmental Orientation Considerations
• Need for spatial cues to orient
visitors;
• Formula facilities draw on previous
experience, removed the anxiety of
disorientation so that customers
know exactly what to do;
• Entrance atrium allows visitors to
gain a quick orientation and
observe others for behavioral cues;
• Orientation aids and signs such as
“You Are Here” maps, color-coded
subway routes help promote
smooth flow of traffic. 18
 Process Layout & the Relative Location Problem

• Process layout allows the customers to define their

own sequence of service activities to meet their needs
(some degree of customization)
• Possible number of layouts = n!
• Operations sequence analysis can be used to identify
a good layout to minimize the total traveling
distance and flow amount
• CRAFT: Computerised Relative Allocation of Facilities
Technique
Example: Ocean World Theme Park case

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Process Layout: Ocean World Theme Park

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 Operations Sequence Analysis
Ocean World Theme Park Daily Flows of Visitors between
Attractions (in hundreds)

Flow Matrix (Given) Step 1: Create a triangularized matrix –

sum the flows in either direction
A B C D E F A B C D E F
A 7 20 0 5 6 15 30 0 15 6
B 8 6 10 0 2 12 40 10 8
Net
C 10 6 15 7 8 flow 20 8 8
D 0 30 5 10 3 30 6
E 10 10 1 20 6 10
F 0 6 0 3 4

Description of Attractions
A=killer whale, B=sea lions, C=dolphins,
D=water skiing, E=aquarium, F=water rides.

Initial A B C

Layout D E F
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 Ocean World Theme Park - Proposed Layout
Step 2: Calculate total flow distance of initial flow Step 3: Attractions with high daily flow between
(nonadjacent attractions are multiplied by the number them should be placed adjacent to each other
of grids that separate the attractions)
(a) Initial layout (Given) (b) Move C close to A

Attraction Flow C Attraction Flow

A B C
pairs distances A B pairs distances
AC 30 * 2 = 60 CD 20 * 2 =40
D E F D E F
AF 6 * 2 = 12 CF 8 * 2 =16
DC 20 * 2 = 40 DF 6 * 2 = 12
DF 6 * 2 = 12 AF 6 * 2 = 12
Total = 124 CE 8 * 2 = 16
Total = 96
(c ) Exchange A and C (d) Exchange B and E and move F
A AE 15 * 2 = 30 A F AB 15 * 2 =30
C B CF 8 * 2 = 16 AD 0*2=0
C E
AF 6 * 2 = 12 FB 8 * 2 = 16
D E F
AD 0*2= 0 D B FD 6 * 2 = 12
DF 6 * 2 = 12 Total = 58
Total = 70

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 Key Take Away

Facility Design & Layout

Process Flow Analysis
Operations Sequence Analysis

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