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Process Design and Analysis

The document discusses various topics related to process design and analysis. It defines key terms like process, cycle time, utilization, buffering, blocking, starving, bottlenecks, make-to-order, make-to-stock, and hybrid processes. It also covers process flowcharting, types of processes, performance metrics like capacity and throughput time, production process mapping, Little's Law, job design analysis, work measurement techniques, setting work standards, reducing process flow time, common process types, and break-even analysis.

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Ahmed Hamza
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268 views

Process Design and Analysis

The document discusses various topics related to process design and analysis. It defines key terms like process, cycle time, utilization, buffering, blocking, starving, bottlenecks, make-to-order, make-to-stock, and hybrid processes. It also covers process flowcharting, types of processes, performance metrics like capacity and throughput time, production process mapping, Little's Law, job design analysis, work measurement techniques, setting work standards, reducing process flow time, common process types, and break-even analysis.

Uploaded by

Ahmed Hamza
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Process Design and Analysis

Dr. Saad Nawaz


Process analysis
• Process: any part of an organization that takes inputs and transforms
them into outputs
• A process that does not match the needs of the firm will punish the firm every
minute that the firm operates
• The output of many processes are services
• Cycle time: the average successive time between completions of
successive units
• Utilization: the ratio of the time that a resource is actually activated
relative to the time that it is available for use
Process Flowcharting
Types of Process
Buffer
Buffer: a storage area between stages where the output of a stage is
placed prior to being used in a downstream stage
Blocking: occurs when the activities in a stage must stop because there
is no place to deposit the item.
• Starving: occurs when the activities in a stage must stop because
there is no work
• Bottleneck: stage that limits the capacity of the process .
• A process can be either paced or nonpaced
• Pacing: having a fixed time for the movement of items through the
process
Make-to-order

• Only activated in response to an actual order


• Both work-in-process and finished goods inventory kept to a
minimum
• Response time is slow

Make-to-stock

• Process activated to meet expected or forecast demand


• Customer orders are served from target stocking level

Hybrid

• Combines the features of both make-to-order and make-to-stock


Process Performance Metrics

• Capacity: maximum output of a process or resource measured in


units/time: a rate.
• Operation time = Setup time + Run time
• Setup time: the length of time required to changeover from one
product to another (assumes products are produced in batches)
• Throughput time = Average time for a unit to move through the
system
Process Performance Metrics
Production Process Mapping and
Little’s Law
Total average value of inventory

• Sum of the value of raw materials, work-in-process, and


finished goods inventory

Inventory turns

• Cost of goods sold divided by the average inventory value

Little’s law

• There is a long-term relationship among inventory,


throughput, and flow time
• Inventory = Throughput rate x Cycle time
Job Design analysis
• Job design: the function of specifying the work activities of an
individual or group in an organizational setting
• Objective is to develop job structures that meet the requirements of
the organization and its technology
• Also that satisfy the jobholders’ personal and individual requirements
• Work measurement methods are used to determine the most
efficient means of performing a given task, as well as to set
reasonable standards for performing it
Behavioral Considerations in
Job Design
Specialization of labor

• Made high-speed, low-cost production possible


• Greatly enhanced standard of living
• Adverse effects on workers

Job enrichment

• Making job more interesting to the worker


• Horizontal enrichment: worker performs a greater number
of variety of tasks
• Vertical enrichment: worker is involved in planning,
organizing, and inspecting work
Work Measurement Techniques
• Direct methods
Stop watch, work sampling
• Indirect methods
Predetermined motion time data
Work Measurement and Standards
• Work measurement: a process of analyzing jobs for the purpose of
setting time standards
• Why use it?
1. Schedule work and allocate capacity
2. Motivate and measure work performance
3. Evaluate performance
4. Provide benchmarks
• Work measurement and its resulting work standards have been
controversial
• Management may set the rate too high
• Workers who find a better way get penalized by having a revised rate set
Process Flow Time Reductions
1. Perform activities in parallel
2. Change the sequence of activities
3. Reduce interruptions
Process types
• Continuous
• Assembly Line
• Job Shop
• Cell
• Project
Break-Even Analysis

• A standard approach to choosing among alternative processes or


equipment
• Model seeks to determine the point in units produced (and sold)
where we will start making profit on the process or equipment
• Model seeks to determine the point in units produced (and sold)
where total revenue and total cost are equal
Thanks for attention

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