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Flashcards in Session 5 - Process Analysis Deck (41)
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Evaluation Analysis

Analyse--> Design --> Develop --> Implement
choice os specific equipment to use in a process often is analysed based on cost-trade off


Cost- trade off

trade-off between more/less specialised equipment
a) less - "general purpose"- it can be use easily in many different ways if it´s set up in the proper way
b) more - "special purpose" - often available as an alternative to general- purpose machine


Break- Even Analysis

defines standard approach to choose among alternative process/equipment
model seeks to determine the point (in units produced) where company will start making profit on process


Break-Even Analysis

Purchase cost of process-equipment
/ price per unit - cost per unit
Total fixed costs / unit price to C - variable cost per unit


Process Flow Chart

describes what happens to the product as it progresses through the production facility
focuses (when analysing manuf. operation) on identification of activities that can be minimised/eliminated
(e.g movement/storage within process)


Process Flow

the fewer moves, delays, storages in the process
the better the flow


Process Flow Chart

1. Set of Tasks
2. Flow of materials &ainfo. that connects set of tasks
3. storage of material &info.


Process Flow
Perform &Transformation of Product

- each task within process accomplished (certain degree) the transformation of input into desired output
- the flow consists of
a) material flow - tranfers product from one stage to next
b) info. flow - determine how much of transformation has been done in previous task & how much remain for present task


Process Flow
Work-In process Inventory

when task is neither transform nor perform it needs to be stored
= goods in storage, waiting to be processed


Visual Charts
d) Flow Charts

are often very informative in business endeavour
they provide a simple but insightful analysis of the capacity of a process &
variable cost to produce each unit of product


Visual Charts

can be used to document manufacturing process flows
some common charts´
assembly drawing
assembly charts
route sheets


Process Flow Analysis

involves adjusting the capacities&balance among the diff. parts of the process
to maximise output or
minimise costs with available resources


Process Analysis

understand how process works is essential to ensure competitiveness of company
a process that doesn´t match needs of firm will punish


Process Analysis
Example - UPS

firms designs delivery routes to avoid left turns
so as not to waste time waiting for a break in oncoming traffic
digital-remote to turn on ignitions & unlock door to be quicker
control - how much drivers are idle, if they are wearing seatbelt etc,



any pat of an organisation that takes inputs --> outputs
outputs: service or products
services the customer plays a direct role (in/output)


Cycle Time of a repetitive process

average time between completion of successive units in a process
total time from beginning to end of one process
E.g. 15-second-cycle time of machine processing coin


Takt Time

average time between start of production of one unit and start of next one
rate of production needed to match rate of customer demand
T = Ta /D
Ta = (net available to work) - work time per period
D= Customer Demand
units required per period


Throughput Rate

output rate that the process is expected to produce over period of time


Process Flow
Money = time

the longer C waits the more likely to switch to competitions
the longer materials is kept in inventory --> the higher the investment cost
But sometimes critical processes often depend on specific limited resources - resulting in bottleneck


Time Reduction
1. Perform activities in Parallel

rather than sequence
--> engineer design (activities performed by integrated teams)
--> development time is reduces
--> needs of all involved are addressed during development process


Time Reduction
2. Change sequence of activities

avoid back &forth transfer of documents, products, transported between departments
E.g. Item moved between fabrication & inspection
--> perform all of the fabrication before the inspection
--> thus eliminating repetitive waiting of each department (due to constant movement)


Time Reduction
3. Reduce interruptions

many process are performed with relatively time intervals between activities
When preparing reports resulting in purchase order -> one should be aware of deadlines & reduce timing



ratio of actual output of a process relative to some standard
doing something at lowest possible cost but using max. capacity (no waste)


Flow Time

average time



ratio of time that a resource is actually activated relative to time it´s available to use


Basic Elements of a Flow Chart

Task or operation (square)
Storage Areas or queues/ waiting lines (triangle)
Decision Points (Rombo)
Flow of material or Customer or Information (arrow)


Categorise Processes

--> to describe how process is designed
--> identify quickly similarities & differences
--> single vs. multi stage process


Single Stage Process

simple box
all activities involved in the operation would be analysed using single cycle time
to represent "speed of the slot machine"


Multi-Stage Process

multiple groups of boxes/ activities that are linked through flows
(arrows of flows of information or materials)
MSP might be buffer internally



storage area between stages where the output storage of a stage is placed prior to being used in a downstream stage