Business Process Design

Wg Cdr(Retd) Simon K John

 Syllabus

1. Process Selection
2. Manufacturing Process Flow Design, Measuring
3. Product Development Performance
4. Planning the strategic use of resources
5. Plant location and Plant Layout
6. Line balancing, Takt time, RPW numerical.

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 Process Analysis ( Chapter 8 of book)
1. Process analysis utilizes some analytical mechanism to
understand the impact of
 process design on output, cost or any other performance
metric
 alternative process configurations on the chosen
performance metric
2. Design & Analysis of process begins with identification of
 activities that constitute the process
 time taken for each of the activity
 nature of flow of materials/information in the process.
 Resources consumed in the process.

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 Flow Process charting
1. A pictorial representation of all these information
could be developed using process flow charting.
2. Process flow charting employs a set of standard symbols
and graphical tools to represent all the information
pertaining to the process
3. The symbols used are
 A step in the Process
 A resource (machine is utilised)
 Transportation (Move)
 Storage or Inventory
Start/ End :

 Decision Continuation Point 2

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 Process Flow Chart for Shirt Manufacturing

Stitching 1

Spreading cloth Cutting

Stitching 2

Pressing &
Inspection Assembly

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 Process Analysis
1. Throughput Time :or Turn Round Time(TRT)
Throughput time (TPUT) is the elapsed time from
the first stage of the process to the last stage of the
process.
2. Cycle Time or Production Rate: Cycle time is the
elapsed time between two successive output from a
process that is continuously operating in a given
period of time.
3. Bottleneck/Critical Activity: That stage of the
process that dictates the output of a process is the
bottleneck.
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 Toy Manufacturing: Example
1. A toy manufacturer receives crafted toys from local
carpenters and performs the final operations before
stocking it for sale. The process consists of five steps.
The first step is to arrange a set of four toys in a pallet.
After this, the pallet moves to the next station where the
toys are pre-treated. This is to increase the toy’s life.
The next step is to send it to the spray painting
chamber, where it is painted as per the specifications. At
present there is only one spray painting machine. After
painting it is left in an open area for drying. The
painting process and the pre-treatment process are
specialized so the paint dries quickly. Finally the toys
7 are inspected and packed.
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 Toy Manufacturing
1. Step 1: Preparation of toys 8 minutes
2. Step 2: Pre-treatment 12 minutes
3. Step 3: Painting 20 minutes
4. Step 4: Drying 10 minutes
5. Step 5: Inspection and packing 5 minutes
Develop a process flow diagram for these steps and answer the
following.
(a) What is the throughput time for this manufacturing process
(b) Identify the bottleneck for this process?
(c) What is the cycle time for this process?
(d) What is the productive capacity of the process?
(e) What are the assumptions behind this computation?
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 Prepare Inspect &
Pre-treat Paint Dry
8 minutes Pack
12 minutes 20 minutes 10 minutes
5 minutes

What is the throughput time for this manufacturing

process?
• The throughput time for the process is 55 minutes

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 Inspect &
Prepare Pre-treat Paint Dry Pack
8 minutes 12 minutes 20 minutes 10 minutes 5 minutes

What is the Bottle neck for this manufacturing

process?
• The spray painting is the bottleneck in the process

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 Prepare Inspect &
Pre-treat Paint Dry
8 minutes Pack
12 minutes 20 minutes 10 minutes
5 minutes

What is the Cycle time for this manufacturing

process?
• Cycle time is 20 minutes. The implication of this is
that when the process operates in a continuous
manner, a pallet of finished toys come out every 20
11
minutes.
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 How good is this toy shop?

Utilisation: Ratio of the time that a resource is

actually activated relative to the time that it is
12 available for use
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 How will you set up this toy shop?
Station 1
Work

Work
Station 2
Station 3
Work

Every batch of four toys come out exactly in an

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 Production Capacity of the system

Pre-treat Paint Dry

Prepare Inspect &
12 minutes 20 minutes 10 minutes
8 minutes Pack
(not a
7.5 pallets/hr 5 minutes
5 pallets/hr 3 pallets/hr constrained
12 pallets/hr
resource)

• The system can produce at the rate of 3 pallets per

hour (12 toys)
• For a 8 hour operation the daily production is 24
pallets (72 toys)
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 Production Capacity under varying resource availability
(2 painting booths)

Existing Scenario: Batch Size of the Process = 1 pallet, 1 painting booth

Inspect &
Prepare Pre-treat Paint
Pack
(8 minutes) (12 minutes) (20 minutes) Dry
(5 minutes)
7.5 pallets/hr 5 pallets/hr 3 pallets/hr
12 pallets/hr

Scenario 1: Batch Size of the Process = 1 pallet, 2 painting booths

Paint
(20 minutes)
3 pallets/hr Inspect &
Prepare Pre-treat
Pack
(8 minutes) (12 minutes) Dry
(5 minutes)
7.5pallets/hr 5 pallets/hr Paint 12 pallets/hr
(20 minutes)
15 3 pallets/hr
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 Production Capacity under varying batch sizes
Existing Scenario: Batch Size of the Process = 1 pallet

Inspect &
Prepare Pre-treat Paint
Pack
(8 minutes) (12 minutes) (20 minutes) Dry
(5 minutes)
7.5 pallets/hr 5 pallets/hr 3 pallets/hr
12 pallets/hr

Scenario 1: Batch Size of the Process = 2 pallets

Prepare Inspect &

Pre-treat Paint
(4+ (2*4) = Pack
(12 minutes) (20 minutes) Dry
12 minutes) (5 minutes)
5 pallets/hr 6 pallets/hr
10 pallets/hr 12 pallets/hr
Scenario 2: Batch Size of the Process = 3 pallets

Prepare Inspect &

Pre-treat Paint
(4+ (3*4) = Pack
(12 minutes) (20 minutes) Dry
16 minutes) (5 minutes)
5 pallets/hr 6 pallets/hr
11.25
16
pallets/hr 12 pallets/hr
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 Process Analysis
Capacity Detail Analysis
Batch size 1pallet 2pallet 3pallets/hr
Prepare 7.5 10.0 11.25
Pre-treat 5.00 5.00 5.00
Spray 3.00 6.00 9.00
Inspect & pack 12.00 12.00 12.00

1. Batch sizes play a crucial role in determining the

bottleneck of a process
2. As several choices are made with respect to the resources
and batch size bottleneck shifts from one stage of the
process to another. This is referred to as wandering
bottleneck.
3.
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ofAM
 Takt Time
1. Work flow is smoothed out by pacing the work
according to customer demand. This is called Takt time
or Maximum time one need to comply with Customer
Demand.
2. Or is Total Available Production Time/Average
customer Demand
3. German word for ‘meter’.
4. Example: A business needs to service 10 customers
every hour.
 Takt Time = 6 Minutes.
5. Aim of the business is to meet the Takt time by adusting
processes.
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 Example 1
Ram runs a small eatery where he sells a single variety of Indian bread (known
as Roti). People can order over phone and come and collect the bread.
Orders are taken for a standard pack of 5 rotis. The entire process is done
in batch of 5 rotis only. Roti making and delivery has five steps and the
details of times per batch of Roti is as follows.
Preparing the dough (3 minutes), Rolling (5 minutes), Heating (4 minutes),
Packing (2 minutes), Billing & Cash (1 minute).
Assume there is a single unit of the required resource available at each stage of
the process. Given this information, answer the following:
(a) What is the throughput time for the process?
(b) What is the maximum hourly production of Rotis possible?
(c) Which stage of the process is the bottleneck in the process?
(d) If Ram keeps his shop open for 4 hours and keeps making Rotis (standard
single variety) since he feels he will sell all of them in any case, how many
Roti’s can he hope to make?
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 Example 1 - Ans
(a) 15 minutes
(b) 12 batches of 5 Rotis each
(c) Rolling
(d) 48 batches for four hours.

However, the first three minutes will be lost from start-

up to each the bottleneck and the last 7 minutes on
shutdown after stopping the bottleneck. Losing ten
minutes means 2 batches. Therefore the daily
production will be 46 batches of Rotis.
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 Example 2
A factory working in 2 shifts each of 8 hours produces
24,000 electric bulbs using a set of workstations. There
are 8 tasks required to manufacture the bulb. The sum
of all task times is equal to 12 seconds. Using this
information, answer the following:
(a) What is the actual cycle time of the plant?
(b) How many workstations are required to maintain this
level of production assuming that combining of tasks
into those workstations is a feasible alternative?

Ans: (a) 2.4 seconds; (b) 5

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