BA 328 - Ch5 - Process Selection, Design, and Analysis
BA 328 - Ch5 - Process Selection, Design, and Analysis
PROCESS
SELECTION, DESIGN
AND ANALYSIS
ROSSEMARE GABRIEL RACMA GERALDINE
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
LEARNING OBJECTIVES:
5-1 Describe the four types of processes used to produce goods and
services.
5.4 Describe how to apply process and value stream mapping for process design.
5-5 Explain how to improve process designs and analyze process maps.
5.6 Describe how to compute resource utilization and apply Little's law.
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
1. Projects – large scale, 2. Job shop processes- 3. Flow shop processes- 4. Continuous flow
customized initiatives that organized around organized around a fixed process- create highly
consist of many smaller particular types of general- sequence of activities standardized goods and
tasks and activities that purpose equipment that and process steps to services, usually around
must be coordinated and are flexible and capable of produce a limited variety the clock in very high
completed to finish on time customizing work for of similar goods and volumes
and within budget ; often individual customers; services; often used for
used for custom goods and often used for custom or option-oriented and
services option type products since standard goods and
orders are processed in services
batches, and different
orders may require a
different sequence of
processing steps and
movements to different
work areas
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
A product life cycle is a characterization of product growth, maturity, and decline over time. A traditional
product life cycle consists of four phases: introduction, growth, maturity, and decline.
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
• Increasing revenue by improving process efficiency in creating goods and services and delivery of the
customer benefit package
• Increasing agility by improving flexibility and response to changes in demand am customer expectation.
• Increasing product and/or service quality by reducing defects, mistakes, failures, or service upset.
• Decreasing costs through better technology or elimination of non-value- added activities.
• Decreasing process flow time by reducing waiting time or speeding up movement through the process and
value chain.
• Decreasing the carbon footprint of the task, activity, process, and/or value chain.
An inspection station for assembling printers receives The average number of entities completed per unit
40 printers/hour and has two inspectors, each of whom time the output rate-from a process is called
can inspect 30 printers per hour. What is the utilization throughput.
of the inspectors? What service rate would be required Throughput might be measured as parts per day,
to have a target utilization of 85 percent? transactions per minute, or customers per hour,
depending on the context.
A bottleneck is the work activity that effectively
The labor utilization at this inspection station is limits throughput of the entire process.
calculated to be 40/(2 x 30) = 67%. If the utilization
rate is 85%, we can calculate the target service rate by
solving the equation:
85% = 40/(2 x SR)
1.7 x SR = 40
SR = 23.5 printers/hour
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
Exhibit 5.10: Revised Utilization Analysis of restaurant Order Posting and Fulfilllment Process(4 ovens)
CHAPTER 5 PROCESS SELECTION, DESIGN AND
ANALYSIS
• Little's Law is a simple formula that explains the relationship among flow time (T), throughput (R) and
work-in-process (WIP).
• WORK-IN-PROCESS = THROUGHPUT X FLOW TIME or WIP = R X T
• Flow time, or cycle time, is the average time it takes to complete one cycle of a process.
• Little's Law provides a simple way of evaluating average process performance.
• If we know any two of the three variables, we can compute the third using Little's Law.