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Chapter 4
Process Analysis

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OBJECTIVES

• Process Analysis

• Process Flowcharting

• Types of Processes

• Process Performance Metrics

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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

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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

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Flowchart
Symbols Purpose and Examples
Tasks or operations Examples:
Examples: Giving
Givingan an
admission
admissionticket
ticket to
toaa
customer,
customer,installing
installingaa
engine
enginein
inaacar,
car,etc.
etc.

Decision Points Examples:

Examples: How
Howmuch
much
change
changeshould
shouldbebe
given
givento
toaacustomer,
customer,
which
whichwrench
wrenchshould
should
be
beused,
used,etc.
etc.

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Flowchart
Symbols Purpose and Examples
Storage areas or Examples:
Examples: Sheds,
Sheds,
queues lines
linesofof people
peoplewaiting
waiting
for
for aaservice,
service,etc.
etc.

Flows of Examples:
Examples: Customers
Customers
materials or moving
movingto toaaseat,
seat,
customers mechanic
mechanicgetting
gettingaa
tool,
tool, etc.
etc.

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Example: Flowchart of Student Going to

School

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

No

Goof
off

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Types of Processes

Single-stage Process

Stage 1

Multi-stage Process

Stage 1 Stage 2 Stage 3

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Types of Processes (Continued)

A buffer refers to a storage area between stages

where the output of a stage is placed prior to
being used in a downstream stage
Multi-stage Process with Buffer
Buffer
Stage 1 Stage 2

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Other Process Terminology

• Blocking
– Occurs when the activities in a stage must stop because
there is no place to deposit the item just completed
– If there is no room for an employee to place a unit of work
down, the employee will hold on to it not able to continue
working on the next unit
• Starving
– Occurs when the activities in a stage must stop because
there is no work
– If an employee is waiting at a work station and no work is
coming to the employee to process, the employee will
remain idle until the next unit of work comes

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Other Process Terminology (Continued)

• Bottleneck
– Occurs when the limited capacity of a process
causes work to pile up or become unevenly
distributed in the flow of a process
– If an employee works too slow in a multi-stage
process, work will begin to pile up in front of that
employee. In this is case the employee represents
the limited capacity causing the bottleneck.
• Pacing
– Refers to the fixed timing of the movement of items
through the process

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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

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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

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Process Performance Metrics (Continued)

• Cycle time = Average time between

completion of units

• Throughput rate = 1 .
Cycle time

• Efficiency = Actual output

Standard Output

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Process Performance Metrics (Continued)

• Productivity = Output
Input

• Utilization = Time Activated

Time Available

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Cycle Time Example

Suppose
Suppose you
you had
had to
to produce
produce 600600 units
units inin 80
80 hours
hours to
to
meet
meet the
the demand
demand requirements
requirements of of aa product.
product. What
What isis
the
the cycle
cycle time
time to
to meet
meet this
this demand
demand requirement?
requirement?

Answer:
Answer: There
There are
are 4,800
4,800 minutes
minutes (60(60
minutes/hour
minutes/hour xx 80
80 hours)
hours) in
in 80
80 hours.
hours. So So the
the
average
average time
time between
between completions
completions would
would have
have
to
to be:
be: Cycle
Cycle time
time == 4,800/600
4,800/600 units
units == 88 minutes.
minutes.

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Process Throughput Time Reduction

• Perform activities in parallel

• Change the sequence of activities

• Reduce interruptions

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End of Chapter 4

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