Process Analysis

HARISH RAO
Understanding Processes

A process is a series of independent tasks that transforms a set of

inputs into outputs of higher value for the organization utilizing a
combination of machines and labor.

Why analyze a process?

To identify inefficient tasks
Identify areas of improvement
To derive more value from the system
Process Flowcharts

Holding:
Raw Materials, RM
Work in Process, WIP
Finished Goods Inventory, FGI

Flow of material or work

Processing step

Decision point
Process Analysis Performance
Measures
For a given process, what needs to be measured to understand its performance?

Task 1 Task 2 Task 3

Capacity How many units go through each task in a given period of time? How
many go through the process?
Bottleneck Which task(s) limits the capacity of the process?
Flow Time/Throughput Time How long it does it take for an unit to get through
the system?
Capacity

Capacity of a task - How much can be processed at this task?

Cycle time Average time for processing to finish on a unit at a task or

a process. Includes setup time. Measured as time/unit

Throughput Rate: Average number of units processed over a time

interval. Measured as units/time

1
Throughput Rate =
Cycle Time
Computing cycle times

Example: A stitching line at a textile factory processes 50 shirts per

batch. On average, it takes 15 mins to stitch a shirt. And for the
given design, it takes 1 hour to set up the stitching line.

Cycle time of stitching line =

Setup Time + (Batch size) x (Time per unit)

Batch size

1 + 0.25 x 50
= = 0.27 hours
50
Bottleneck

Bottleneck is that task in set of tasks with the smallest throughput rate
(longest cycle time)
Bottleneck task dictates the capacity of the process
Capacity of the process is the minimum throughput at any of the
tasks

Task 1 Task 2 Task 3

20 secs/unit 30 secs/unit 40 secs/unit

What is the bottleneck in the above process? What is the capacity

of the process?
Flow time(Throughput time) and
WIP
Flow time Average time that an unit takes to go through the entire
process (including the waiting time). Measured in units of time

Work In Process Average number of units in a system over a time

interval. Measured in units

WIP
Flow Time (Throughput Time) =
Throughput Rate

This relationship is also called as the Littles Law.

Analyzing a complex process

Analyze the process step by step

Determine throughput rate or capacity at each step of the process
Identify the process bottleneck (lowest throughput rate)
The bottleneck capacity is the capacity of the process.
Example: Dumbbell production
process
Description:
A) Machining: Weights for the dumbbells are machined. Two machining lines work
in this stage Two weights combine to make one dumbbell. The finished goods
are placed in the buffer
B) Assembly: The connecting rods are attached in this step
C) Pack and Ship: Finished dumbbells are packaged and shipped

Machining
WIP WIP Pack and
Assembly
ship
Machining
Analysis
Machining
WIP WIP Pack and
Assembly
ship
Machining

Data
Machining:
Setup 30 min, 2 mins per weight processing. Batch size 100 weights
Assembly:
Manual, no setup, 10 mins per dumbbell, 5 workers available
Pack and ship:
Setup 20 min, 1.5 mins per dumbbell. Batch size 20 dumbbells
Step 1: Machining

First, let us look at one line

100 weights require = 30 + 2 x 100 = 230 mins

Throughput Rate:
100 / 230 = 0.4347 weights/min = 26.08 weights/hour
Two weights combine to make one dumbbell
So, throughput rate in dumbbells = 26.08/2 = 13.04 dumbbells/hour

But we have two lines, so throughput of machining step is 26.08

dumbbells/hour
Assembly

1 dumbbell needs 10 mins of processing time from a worker

So, throughput rate for one worker

= 1/10 mins = 0.1 dumbbells/min
= 6 dumbbells/hr

With 5 workers in this step, the throughput rate of the assembly task is 6
x 5 = 30 dumbbells/hr
Pack and Ship

20 dumbbells require = 20 + 1.5 x 20 = 50 mins

Throughput Rate:
20 / 50 = 0.4 dumbbells/min = 24 dumbbells/hr
Dumbbell manufacturing:
Bottleneck?

Process Step Capacity (units/hr)

Machining 26.08

Assembly 30

Pack & Ship 24

More Terminology

Buffering:
Keeping inventory between two stages

Blocking:
Stoppage of process flow because there is no storage space

Starving:
Stoppage of activity because of lack of material
Example:
Task 1 Task 2 FG
30 secs 20 secs

Note: No buffer space between stations, so upstream station has

to wait if downstream station is busy

Is any task starved or blocked?

What is the capacity of the process?

What is the throughput time?

What is the average WIP?

Example:
Task 1 Task 2 FG
30 secs 20 secs

Task 2 starved for 10s. each time.

Throughput rate = 2 units/min at Task 1, 3 units/min at Task 2
Capacity (throughput rate) of process = 2 units/min
Throughput time = 50 seconds

WIP = Throughput rate x Throughput time

= 2 units/min x 50 seconds
= 1.6667 units
Example:
Task 1 Task 2 FG
20 secs 30 secs

Note: No buffer space between stations, so upstream station has

to wait if downstream station is busy

Is any task starved or blocked?

What is the capacity of the process?

What is the throughput time?

What is the average WIP?

Example:
Task 1 Task 2 FG
20 secs 30 secs

Task 1 blocked for 10 secs each time.

Throughput rate = 3 units/min at Task 1, 2 units/min at Task 2
Capacity (throughput rate) of process = 2 units/min
Throughput time = 60 seconds (why?)

WIP = Throughput rate x Throughput time

= 2 units/min x 60 seconds
= 2 units
Will the bottleneck remain the
same all the time?
Consider a batch production process with three processes A, B and C as shown
below

Task A Task B Task C

The setup times and run times for the three processes are given below
Setup Time (mins) Run Time (mins)/unit
A 10 5
B 25 2
C 100 0.5

What is the bottleneck process when the batch size is

a) 1 unit per batch
b) 10 units per batch
c) 100 units per batch
 Process Strategies
Repetitive Modular Design
Focus Flexible Equipment

Modular Techniques

Mass
Customizatio
Effective Scheduling n Rapid Throughput
Techniques Techniques

Low Variety
Process Product High Volume
High Variety
Focus Focus High Utilization
Low Volume
Low Utilization Specialized Equipment
General purpose equipment
Value Stream Mapping
Where value is added in the entire production process, including
the supply chain
To eliminate waste in the supply chain
Extends from the customer back to the suppliers
Value Stream Mapping
Begin with symbols for customer, supplier, and production to ensure the
big picture
Enter customer order requirements
Calculate the daily production requirements
Enter the outbound shipping requirements and delivery frequency
Determine inbound shipping method and delivery frequency
Add the process steps (i.e., machine, assemble) in sequence, left to
right
Add communication methods, add their frequency, and show the
direction with arrows
Add inventory quantities (shown with I ) between every step of the
entire flow
Determine total working time (value-added time) and delay (non-
value-added time)
Value Stream Mapping
Business Process Reengineering
Introduced by Michael Hammer
Streamline work process
Seven principles
Organize around outcomes, not tasks.
Identify all the processes in an organization and prioritize them in order of
redesign urgency.
Integrate information processing work into the real work that produces the
information.
Treat geographically dispersed resources as though they were centralized.
Link parallel activities in the workflow instead of just integrating their results.
Put the decision point where the work is performed, and build control into the
process.
Capture information once and at the source.