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PMBA8155 Operations Management
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Process Analysis ___________________________________

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Learning Objectives
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Understand
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Process flowcharting
Types of Process: ___________________________________
multistage vs. single stage
make-to-order vs. make-to-stock ___________________________________
Blocking vs. starving
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Understand and Calculate Various
Measures of Process Performance

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What Is A Process?
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A process is a collection of activities that
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transforms inputs into outputs that are
valuable to the customer ___________________________________
Any part of an organization that takes inputs
and transforms them into outputs is a process ___________________________________
Process analysis is to systematically examine
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all aspects of a process to improve its
operations with regard to cost, quality, speed,
and responsiveness
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 ___________________________________

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Process Flowchart
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Diagram showing the major elements of a ___________________________________
process and their interconnections
tasks or operations ___________________________________

flows of materials or customers ___________________________________

storage areas or queues. ___________________________________

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Process Flowchart
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Symbols
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Storage areas or
Tasks or operations
queues
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Flows of materials
Decision Points
or customers
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Process Flowchart
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Examples: Hamburger Making Process
Customer
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1. McDonalds order

Raw
material Cook Assemble
Finished
burgers Deliver
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2. Burger King Assemble

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C
Raw WIP S
material Cook Customer
order
Custom
or
Standard?
Deliver ___________________________________
Finished
Assemble burgers ___________________________________
Customer
order 3. Wendys
Raw
material Cook Assemble Deliver

Chili

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 ___________________________________

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Types of Processes
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Single-stage vs. Multistage ___________________________________

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Stage 1

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Stage 1 Stage 2 Stage 3

Stage
Buffer
Stage
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1 2
Types of Process
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Multistage Process with Buffer
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What might happen without buffers?
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Blocking: occurs when the activities in a stage
must stop because there is no place to deposit ___________________________________
the item (Stage 1 when it is faster)
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Starving: occurs when the activities in a stage
must stop because there is no work (Stage 2 ___________________________________
when it is faster)
Bottleneck: the stage that limits the capacity
of the process (the slowest stage)
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Types of Process ___________________________________
Make-to-stock vs. Make-to-order
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Customer
Make-to-stock Process order
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Finished
Make goods Deliver ___________________________________

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Customer Make-to-order Process
order ___________________________________

Make Deliver

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 ___________________________________
Types of Process
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Paced vs. Non-paced
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Pacing refers to the fixed timing of the
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movement of items through the process
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Assembly lines are often paced (e.g.
every 30 seconds, there is a movement ___________________________________
of items from stage to stage)
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Most service processes are non-paced

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You can not improve what you cant measure
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Process Performance Metrics
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Operation time = Setup time + Run time ___________________________________
Flow time = Average time for a unit to move ___________________________________
through the system
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Cycle time = Average time between completion
of successive units ___________________________________

Throughput rate = 1
Cycle time
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Important Notice Regarding the ___________________________________
Use of Performance Measures
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These measures are designed to be used when
a production system has reached steady state ___________________________________
A steady state is the state of the system when ___________________________________
the system characteristics such as production
rate do not change over time ___________________________________
Typically, the steady state is reached after the
system has been in operations for some time ___________________________________
For example, the production rate at the beginning of
the day when the system is idle is different than
when the system has been operated for a while

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 ___________________________________
Process Performance Metrics
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Example 1
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3 min/unit 3 min/unit 3 min/unit
Stage 1 Stage 2 Stage 3
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(Assume 8-hour working day) ___________________________________

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Flow time = 3 + 3 + 3 = 9 minutes

Cycle time = 3 minutes ___________________________________

Throughput rate = 1/3 units/min = 20 units/hr

= 120 units/day
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Process Performance Metrics ___________________________________
Example 2
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2 min/unit 3 min/unit 1 min/unit
Stage 1 Stage 2 Stage 3
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(Assume 8-hour working day) ___________________________________

Cycle time = 3 minutes ___________________________________

Throughput rate = 120 units/day ___________________________________

Flow time = 3 + 3 + 1 = 7 minutes

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Process Performance Metrics ___________________________________
Example 3
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2 min/unit 3 min/unit 1 min/unit
Buffer ___________________________________
Stage 1 Stage 2 Stage 3

(Assume 8-hour working day) ___________________________________

Cycle time = 3 minutes
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Throughput rate = 120 units/day
Flow time = A fairly big number ___________________________________
At the end of the day, how many items are in
the buffer? = (1/2 1/3) x 60 x 8 =80

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 Demonstration 1 ___________________________________
A B C (No Buffer)
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2 3 1
Min 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ___________________________________
Unit 1 A B C

Unit 2 A B C Cycle time = 3 min ___________________________________

Unit 3 A B C TPR= 20 units/hr
TPT= 7 min
Unit 4 A B C ___________________________________
Unit 5 A B C

Unit 6 A B C ___________________________________
Unit 7 A B C

Unit 8 A B C ___________________________________
Unit 9 A B C

Lesson 1: The throughput rate (capacity) of a

process is determined by the bottleneck stage, not
the flow time

Demonstration 2 ___________________________________
A B C (With Buffer)
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2 3 1
Min 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ___________________________________
Unit 1 A B C

Unit 2 A B C Cycle time = 3 min ___________________________________

Unit 3 A B C TPR= 20 units/hr
TPT gets longer over time
Unit 4 A B C ___________________________________
Unit 5 A B C

Unit 6 A B C
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Unit 7 A B C

Unit 8 A B C
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Unit 9 A B C

Lesson 2: Adding buffer (inventory holding area)

doesn't change the capacity of a process but can
make it slower in terms of the flow time

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In-Class Exercise ___________________________________

Driver License Renewals
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Check Issue
Review Payment Eye Test Photograph
Violations license
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15 sec 30 sec 60 sec 40 sec 20 sec 30 sec
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How many applications per hour can be Reviewed?
What is the cycle time of this process? ___________________________________
What is the process throughput rate per hour?
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If two buffers are added right before and after Check
Violations, how many applicants will be in after one hour
of operations?
How many applications can be processed per hour if a
second clerk is added to check for violations? 18