Scribd
Upload
138 views15 pages

Operations Management: For Competitive Advantage

Uploaded by

muthjicku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
138 views15 pages

Operations Management: For Competitive Advantage

Uploaded by

muthjicku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 15

Operations Management For Competitive Advantage ninth edition 1

CHASE AQUILANO JACOBS


Operations Management
For Competitive Advantage
Chapter 4

Process Analysis
CHASE AQUILANO JACOBS ninth edition
©The McGraw-Hill Companies, Inc., 2001
Operations Management For Competitive Advantage ninth edition 2

Chapter 4
Process Analysis
 Process Analysis

 Process Flowcharting

 Types of Processes

 Process Performance Metrics

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 3

Process Analysis Terms


 Process: Is any part of an organization that
takes inputs and transforms them into
outputs.
 Cycle Time: Is the average successive time
between completions of successive units.
 Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 4

Process Flowcharting
Defined
 Process flowcharting is the use of a
diagram to present the major elements of a
process. The basic 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.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 5

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.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 6

Flowchart Symbols (Continued)


Storage areas or Examples: Sheds,
queues lines of people waiting
for a service, etc.

Flows of Examples: Customers


materials or moving to the a seat,
customers mechanic getting a
tool, etc.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 7

Example: Flowchart of Student Going


to School

Go to Yes
Drive to Walk to
school school class
today?

No

Goof
off

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 8

Multistage Process

Stage 1 Stage 2 Stage 3

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 9

Multistage Process with Buffer

Buffer
Stage 1 Stage 2

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 10

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.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 11

Process Performance Metrics


 Operation time = Setup time
Run time

 Throughput time = Average time for a unit to


move through the system

 Velocity = Throughput time


Value-added time

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 12

Process Performance Metrics


(Continued)
 Cycle time = Average time between
completion of units

 Throughput rate = 1 .
Cycle time

 Efficiency = Actual output


Standard Output

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 13

Process Performance Metrics


(Continued)

 Productivity = Output
Input

 Utilization = Time Activated


Time Available

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 14

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.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001


Operations Management For Competitive Advantage ninth edition 15

Process Throughput Time Reduction


 Perform activities in parallel.

 Change the sequence of activities.

 Reduce interruptions.

CHASE AQUILANO JACOBS ©The McGraw-Hill Companies, Inc., 2001

You might also like