2

PROCESS FLOWCHARTING
§ Purpose: To describe a process visually to find ways
of improving the current process.
OPIM 404 − Find repetitive operations
Business Process − Identify bottlenecks
− Describe directions, durations and distances of flows
Analysis & Design (people, material and information)
− Reduce waste à Any non-value adding operation
• Time in storage/queue
• Transportation time
Analyzing Process Flows – • Inspection time

Deterministic – Part 1 n Needs

− Selection of a relevant system and
− Description of customers, inputs, outputs, suppliers,
Tevhide Altekin boundaries and transformations

1 3

RECALL: BUSINESS PROCESS PROCESS FLOWCHARTING (CONT’D)

§ Process Flowcharting à Creation of a visual
Resources diagram to describe a transformation process.
§ Useful for analyzing and improving a process (esp.
Process
when it includes process measures).
Suppliers Inputs Outputs Customers § Process flow analysis might change
− Raw materials
− Product or service design (output)
− Job design
A business process transforming inputs into outputs − Processing steps used
§ is a network of connected activities and buffers with well − Management control information
defined boundaries and precedence relationships, − Equipment or tools
§ which utilize resources to transform inputs into outputs − Suppliers
§ with the purpose of providing value to the customers. i.e. Anything but customers may be changed!
 4 5

A Systems Flowchart Example: Selecting a Steps in Process Flowchart Analysis

Supplier Transformation Process (Figure 6.2) Using the Systems Approach:
1. Identify & select a process (or system) to study
− Entire supply chain or entire firm or part of firm
2. Form a team to analyze & improve the system
− Process ownership. Cross-functional team. Interfirm collaboration
3. Specify the boundaries of the transformation process
− Where does the selected process start & end?
− Who are the customers and the suppliers?
− How many processing steps/activities are to be evaluated?
4. Identify and sequence the operational steps
− “As is” version. ”To be” version.
5. Identify performance metrics
− Should be tied to the overall performance of the process
6. Draw the flowchart, defining and using symbols in a
Buyer’s perspective: Steps, decision points, flow sequences are shown
consistent manner

4a 5b

Common Flowcharting Symbols (Figure 6.4) Two Flow-Process Chart Symbols (Cont’d)
§ Delay: A delay occurs when the immediate performance of the
next planned action does not take place. During the delay the
work pieces/papers/flow units may wait in buffers (i.e. queues
or waiting areas). Examples provided on next slide include
1. Material in truck or on floor at bench waiting to be
processed,
2. Employee waiting for the elevator, and
3. Papers waiting to be filed.
§ Storage: A storage occurs when an object is kept under
control in a storage area (such that its withdrawal may
require authorization). Examples provided on next slide
include
1. Bulk storage of raw material,
2. Finished products in a warehouse, and
3. Documents and records in storage vault.
 5c 5e

Flowchart Example: Me Coming to my

Two Flow-Process Chart Symbols
OPIM 404 Class on Tuesday mornings

Check/ Prepare Wait the

Go to
Stop the for class
class
alarm school

5d 6

Flowchart Example: Students Coming to Service Blueprint

OPIM 404 Class
§ Flow charting of a service operation
§ Capture perspectives of different people
Go to Yes Prepare § Shows how the customer and service providers
Stop the Check school Go to
for interact at each step of service delivery process
alarm time today? class
school
§ Each horizontal row for a specific person
No − The customer or
Wait the − One of the service providers
Goof
class − Like swim lanes à Show who is doing what
off
§ A.k.a. Swim lane flowchart, deployment
flowchart or matrix flowchart
 6a 7

Service Blueprint Example: Coffee Shop PROCESS-FLOW ANALYSIS

Failure: Get wrong order
Poka-yoke: Write name,
Failure: Prepare order
wrong
AS ASKING QUESTIONS
and repeat while marking Poka-yoke: Preparing
drink specifications as the by reading the Failure: Deliver drink § Once the flowchart is created, it should be
customer orders markings on the cup wrongly
Poka-yoke: Reading
analyzed using systems approach à Highlight
Take drink Collect Make Deliver
order payment drink drink
name and repeating the
order just completed
opportunities for improvement.

§ Ask questions about the flowchart adopting the

Materials (Coffee, Fail Can be seen systems perspective à What, Who, When,
flavors, milk, cups, etc.) point by customers Where, How Questions
Line of visibility
Cannot be seen § Ask questions consistent with supply chain and
Order Prepare by customers
operations objectives à Questions on Flow,
supplies mixes
Time, Quantity, Quality and Cost

6b 6c

Service Blueprint Example: Helping A Service Blue Print Example: Helping

Selection of a Ready-Made Suit Selection of a Ready-Made Suit
 7a 7c

Asking What, When, Who, Where and Asking Flow, Time, Quantity, Quality,
How Questions Cost Questions

7b 7d

Asking What, When, Who, Where and Asking Flow, Time, Quantity, Quality,
How Questions Cost Questions
 7e 9
Recall: Flow-Process Chart for Picking Unit Load, Load Batch, Capacity
Operations à
Material Flow § Unit Load à Sum of operation times of all activities
that utilize a specific resource (in minutes in OPIM 404)
§ Load Batching àSimultaneously process several
flow units
− Oven baking 10 loaves of bread à Load batch = 10
− The higher the load batch, the higher the capacity
§ Capacity of a single resource unit (i.e. Number of
units processed by a single resource unit per hour)
Realize various non-value = (60/Unit load) x Load batch
adding activities
(transportation, delays, § Capacity of a resource pool
storage and sometimes even
inspection) à 469 min out of = (60/Unit load) x Load batch x # of identical resources
526 min

8 10

MEASURING PROCESS FLOWS Managing Process Flows – Pizza USA 1

§ Flow unit § Produce fresh pizzas of seven choices

− A customer; a dollar; a ton of steel; an R&D project § Two employees à 1 Chef & 1 Assistant
− A bank transaction to be processed; a student; a shopper § Oven that can bake 4 pizzas at a time
§ Three questions: § Transformation process (sequence of steps)
− On average, how many flow units pass through the Activity Minutes Resource
process per unit time?
Take the order 1 Assistant
− On average, how much time does a typical flow unit spend
within process boundaries? Make the crust 3 Chef
− On average, how many flow units are within process Prepare & add ingredients 2 Chef
boundaries at any given time? Bake the pizza 24 Oven
§ Answers: Average flow rate, flow time Cut pizza & put in a box 1 Assistant
(throughput time), inventory
Take payment 1 Assistant
 11 12

Managing Process Flows – Pizza USA 2 Process Capacity and Bottleneck

§ For simplicity assume that § Maximum rate of output of a process

− Each order is for one pizza § Process Capacity= Min{CapRes1, CapRes2,…, CapResN}
− Pizzas can be added to the oven any time § Process Capacity= Capacity of the most
Capacity # of constraining resource (i.e. the smallest capacity).
Resource Unit Load Load (Number of Identical − This resource is called a ‘bottleneck.’
Pool (Min/order) Batch orders/hr) Units
Resource 1 Resource 2 à Assume 1 unit available
Assistant 1+1+1=3 min 1 (60/3)x1 = 20 1
Assume load batches =1
Chef 3+2 = 5 min 1 (60/5)x1 = 12 1
Oven 24 min 4 (60/24)x4 = 10 1 5 min 3 min à Unit Load of Resources
60/5x1x1=12units/hr 60/3x1x1=20units/hr àCapacity of Resources
§ Minimum of the three resource capacities à
Which resource is the bottleneck? Resource 1
10 orders/hour
Capacity of Process = Min{Cap. of Res. 1, Cap. of Res. 2}
§ So the capacity of the process à
= Min{12, 20} = 12 units/hour
10 orders/hr
11 12a

Managing Process Flows – Pizza USA 2

Buffering, Blocking and Starving
§ For simplicity assume that § Buffering à Allow stages to work independently
− Each order is for one pizza
§ No buffering à Two stages directly linked
− Pizzas can be added to the oven any time
− Blocking à Stopping of a stage as there is no
Capacity # of place to deposit the finished item.
Resource Unit Load Load (Number of Identical
Pool (Min/order) Batch orders/hr) Units
Assistant 1+1+1=3 min 1 (60/3)x1 = 20 1 30 sec. 45 sec.
Chef 3+2 = 5 min 1 (60/5)x1 = 12 1 − Starving à Stopping of a stage because there is
Oven 24 min 4 (60/24)x4 = 10 1 no piece to work on
§ Minimum of the three resource capacities à
10 orders/hour 45 sec. 30 sec.
§ So the capacity of the process à
10 orders/hr
 13 15

Flow Rate of a Process Throughput Time (Flow Time)

§ The amount a process actually produces will § Time from when the input first starts being
depend on not only to its capacity but also on the transformed in the process until it becomes the
supply and the demand of the process. output and leaves the process.
− Demand > capacity à Opportunity losses § Throughput time includes all
− Capacity > demand à Wasted resources, Excessive − Processing times à Summation of work contents of
fixed costs each activity, if all activities are done sequentially
§ The flow rate of a process is the minimum of − Waiting times
− Supply (i.e. inputs used in the process) § Min. Theoretical Throughput Time (assume no
− Demand waiting)= 5 + 3 = 8 min
− Process Capacity 5 min 3 min
§ Flow rate of a process= § Min. Theo. Throughput Time =
Min{Supply, Demand, Process Capacity}
Max{5, 3} = 5 min
14 16

Managing Process Flows – Pizza USA 3 Reducing the Flow Time (Throughput Time)
§ What is the flow rate of the process? § Perform activities in parallel
− Flow rate = Min{Demand, Supply, Process Capacity}
§ Change the sequence of activities
− Flow rate = Min{Demand, Supply, 10 orders/hr}
− Assuming Demand and Supply > 15 orders/hr à § Reduce interruptions
Maximum flow rate of this process is 10 orders/hr § Identify and make max use of bottlenecks
§ What is the bottleneck in this process?
§ Plan and coordinate process activities better
− Process can not produce more than bottleneck
− Resource with smallest capacity à Bottleneck à Oven
− If we buy another oven, what would be new capacity of
the process & what would be the new bottleneck?
Capacity of oven = (60/24) x 4 x 2 = 20 orders/hr
Capacity of process = Min{20, 12, 20} = 12 orders/hr
New bottleneck à Chef à Relocate some of chef’s jobs
 16

Reducing the Flow Time (Throughput Time)

§ Perform activities in parallel
OPIM 404 § Change the sequence of activities
Business Process § Reduce interruptions
Analysis & Design § Identify and make max use of bottlenecks
§ Plan and coordinate process activities better

Analyzing Process Flows –

Deterministic – Part 1 (Continued)

Tevhide Altekin

15 17

Flow Time (Throughput Time) Managing Process Flows – Pizza USA 4

§ Time from when the input first starts being § What is the minimum theoretical flow time?
transformed in the process until it becomes the − Time to complete all steps and make a pizza

output and leaves the process. − No waiting between activities. Assuming, all activities are
in series, simply the summation of all activity times
§ Flow time includes all Activity Minutes Resource
− Processing times à “Considers” work contents of all Take the order 1 Assistant
conducted activities Make the crust 3 Chef
− Waiting times Prepare & add ingredients 2 Chef
Bake the pizza 24 Oven
§ Min. Theoretical Flow Time (assume no Cut pizza & put in a box 1 Assistant
waiting)= 5 + 3 = 8 min Take payment 1 Assistant
Min Theoretical Flow Time 32 min
5 min 3 min − Will adding one more oven change min. theo. flow time?
§ Min. Theo. Flow Time = • NO

Max{5, 3} = 5 min • To reduce flow time à Need to change actual activities

 18 20

Capacity Utilization Gantt Chart

§ Fraction of time resource is busy § Shows the time at which different activities are
performed, as well as the sequence of the activities
Flow rate of the process
= Activities
Capacity of the resource
Blocked
1
§ Example: A machine’s capacity is 100 items per

Resources
hour. Flow rate of the process is 75 units per hour. 2

Then 3 Blocked

Capacity utilization = 75/100 = 0.75 or 75%. 4

Time

19 21

Managing Process Flows – Pizza USA 5 Gantt Chart Example Th. Min. Flow Time = 5+2 = 7 min
Capacity of Op1 = (60/5)x1x1 =
§ Considering the original process with 1 Chef, 1 = 12 units/hr
A B Capacity of Op2 = (60/2)x1x1=
Assistant and 1 Oven, what is the utilization of each
= 30 units/hr
resource? 5 min 2 min Capacity of Pr. = Min{12, 30}
Operator 1 Operator 2 = 12 units/hr
− Flow rate of process = 10 orders/hr
Assume load batches of activity A and B are both 1 Flow Rate of Process =
− Capacity of oven = 10 orders/hr Min{Supply, Demand, Pr. Capacity}
Assume we have 1 Operator 1 and 1 Operator 2
= 12 units/hr
− Capacity of chef = 12 orders/hr Assume both demand and supply are 15 units/hr Cycle Time = 1/Flow Rate
− Capacity of assistant = 20 orders/hr 5 10 15 20 Cycle Time = 1/12 = 0.0833 hr
= 0.0833x60 = 5 min
Resources

− Utilization = Flow rate of process/Capacity of resource Op 1 A A A A

Op 2 B B B B
− Utilization of Assistant = 10/20 = 50% à Idle half of time 7 12 17 22

− Utilization of Chef = 10/12 = 83.3% Time

− Utilization of Oven = 10/10 = 100% Cycle Time = 5 min

Cycle time is the average time between two consecutive completions = 1/Flow Rate
 22 22-2

REVIEW: HOW TO ANALYZE A PROCESS? Recall: Load Batch

Resources § Resources may process several flow units simultaneously
during the operation time
§ Oven baking 10 loaves of bread in a tray simultaneously à
Inputs Outputs − Load batch = 10 loaves
§ A machine packing breads one by one
− Load Batch = 1 loaf
§ How many customers can the service handle per hour? § A recipe for 100 loaves of bread
§ How long will it take to serve a customer?
− Load Batch = 100 loaves
§ What change is needed to expand capacity?
§ The higher the load batch, the higher the capacity.
§ How much does the process cost?
− Why?
60 (min/hr) Load # of Identical Resources
CapacityResourcePool = x x in Resource Pool
(units/hr) Unit Load (min) Batch

22-1

Recall: Resources and Resource Pools

§ In every process, activities are performed by capital and labor
resources
− Each activity may require one or more resources
− Each resource may be allocated to one or more activities

§ Resource pool is a collection of interchangeable resources

that can perform an identical set of activities
§ Note: Through cross-training and process improvement might
be possible to make the separate resource pools to handle
tasks performed by each other à Resource pooling
− Involve combining of separate resource pools flexible to handle tasks
performed by each other.
− Powerful operational concept à Can significantly affect the flow rate,
capacity and flow time
 22-2 22-4

Unit Load Example – Recall: Flow Time, Flow Rate

Health Maintenance Organizations
§ Flow Time: Average time for a unit to move through the
Mailroom Data Entry Initial Inspection Final system. Includes
(Arriving claims (check, if OK Processing Processing
are opened & store, o/w − Value added time: “Considers” time unit spent actually
date stamped) send back) being worked on (Sum of activity operation times if
0.6 min/claim 4.2 min/claim 4.8 min/claim 2.2 min/claim 1.8 min/claim activities are in series)
Mailroom Data-entry Claims Claims Claims
− Time spent waiting in buffer (i.e. waiting in a queue)
clerk clerk processor supervisor processor
Assume there is one unit of each resource and claims are processed one by one § Flow Rate: Output rate the process is expected to produce
over time
Unit Load (Tp)
− Flow Rate = Min{Demand, Supply, Process Capacity}
Resource Pool (p) (min/claim)
Mailroom clerk 0.6
Data-entry clerk 4.2 ... ... ... ... ...

Claims processor 4.8+1.8 = 6.6 Throughput Rate

Claims supervisor 2.2 [units/min]
Throughput Time [min]

22-3

Effect of Product Mix on Unit Load

§ Capacity of a process is a function of the product mix
§ Unit Load for Product Mix à Average the unit loads of
the individual products using the weights determined in
the product mix
− Example: Health Maintenance Organization
• Process: Physician claims & hospital claims
• Product mix: 60% Physician claims & 40% hospital claims

Unit Load Unit Load Unit Load (60% - 40% Mix)

Resource Pool (Physician) (Hospital) (min/claim)
Mailroom clerk 0.6 min/claim 1.0 min/claim 0.6x60% + 1.0x40% = 0.76
Data-entry clerk 4.2 min/claim 5.2 min/claim 4.2x60% + 5.2x40% = 4.60
Claims processor 6.6 min/claim 7.5 min/claim 6.6x60% + 7.5x40% = 6.96
Claims supervisor 2.2 min/claim 3.2 min/claim 2.2x60% + 3.2x40% = 2.60
 23 25

Cycle Time Operator Loading Chart

§ Cycle Time à Average time between completions of two § Sometimes, we are given a goal of T time units to produce
successive units (=1/Flow Rate) all the units demanded.
Cycle Time [min]
§ We can check whether that goal can be met or not in 3
... ... ... ... ... different ways.
Flow Rate − Process Capacity >= Demand: Goal can be met
[units/min] − Cycle Time <= Takt Time: Goal can be met
Flow Time [min]
− Time required to
complete one cycle at
§ What is the difference between cycle time and flow time?
each stage <= Takt time:
Goal can be met
• Draw and check

Operator Loading Chart

24

Takt Time
§ An indication of how fast processes must be in order to meet
demand in allotted time
§ Amount of time available / Units demanded
§ Suppose you had to produce 600 units in 80 hours to meet
the demand requirements of a product. What is the takt
time?
In 80 hours we have 4,800 minutes (60 minutes/hr x 80 hrs)
Takt time = 4,800 min/600 units
= 8 min btw consecutive units