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Lecture Introduction to operations management - Chapter 6: Process-flow analysis

In this chapter we will discuss: Process thinking, the process view of business, measuring process flows, measuring process flows at pizza U.S.A, process flowcharting, process-flow analysis as asking questions, business process reengineering (BPR). | Chapter 6, Process-Flow Analysis INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Outline of Chapter 6 Process Thinking The Process View of Business Measuring Process Flows Measuring Process Flows at Pizza U.S.A. Process Flowcharting Process-Flow Analysis as Asking Questions Business Process Reengineering (BPR) Process Thinking Process Thinking: all work can be seen as a process Definition of a “system” Whole > sum of parts Application of systems thinking to businesses Defining system boundaries Role of “cross-functional” teams in systems analysis Systems thinking requires cross-functional teams to include all affected functions Figure 6.1: Process View of Business Measuring Process Flows Little’s Law Relates number of items in the system to arrival rate and length of time in the system Formula: I = T x R I = average number of things in the system T = average throughput time R = average flow rate into the process Assumes system is in a ‘steady state’ Applications of Little’s Law Manufacturing Waiting lines Invoice processing Legal office transactions Accounts receivable processing Etc. Measuring Process Flows Capacity of a system = capacity of the most constraining resource This resource is called a ‘bottleneck.’ The flow rate of a process is the minimum of: Supply Demand Capacity Process Flowcharting Process Flowcharting: creation of a visual diagram to describe a transformation process Also known as: Process mapping Flow-process charting Service blueprinting Value stream mapping Process Flowcharting Purpose: to describe a process visually to find ways of improving the current process. Find repetitive operations Identify bottlenecks Describe directions and distances of flows (people, material and information) Reduce waste Required for certifications such as ISO9000 Process Flow Analysis Might Change: Raw materials Product (output) design Job design . | Chapter 6, Process-Flow Analysis INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Outline of Chapter 6 Process Thinking The Process View of Business Measuring Process Flows Measuring Process Flows at Pizza U.S.A. Process Flowcharting Process-Flow Analysis as Asking Questions Business Process Reengineering (BPR) Process Thinking Process Thinking: all work can be seen as a process Definition of a “system” Whole > sum of parts Application of systems thinking to businesses Defining system boundaries Role of “cross-functional” teams in systems analysis Systems thinking requires cross-functional teams to include all affected functions Figure 6.1: Process View of Business Measuring Process Flows Little’s Law Relates number of items in the system to arrival rate and length of time in the system Formula: I = T x R I = average number of things in the system T = average throughput time R = .