1. 1
Process Analysis

2. 2
OBJECTIVES
• Process Analysis
• Process Flowcharting
• Types of Processes
• Process Performance Metrics

3. 3
Process Analysis Terms

Process: Is any part of an organization that
takes inputs and transforms them into outputs

Cycle Time: Is the average successive time
between completions of successive units

Utilization: Is the ratio of the time that a
resource is actually activated relative to the
time that it is available for use

4. Process Flowcharting
Defined

Process flowcharting is the use of a diagram to
present the major elements of a process

The basic elements can include tasks or
operations, flows of materials or customers,
decision points, and storage areas or queues

It is an ideal methodology by which to begin
analyzing a process
4

5. 5
PROCESS ANALYSIS
Standard Symbols used for Flowcharting
Symbol
Activity
Operation
Transportation
or Movement
Inspection
Delay/Temporary
Storage
Definition of Activity
Modification of an object
Change in location of an
Item
Examination of an Object
(Qlty/Qty parameters)
Retention of an Object in a
location awaiting next
activity

6. 6
Decision Point
(Awaiting decision
on further Action)
Storage
Combined
Activity
Location awaiting
next activity
Items in stored
condition (no
unauthorized
removal)
Two activities
occur
simultaneously

7. •
PROCESS ANALYSIS – Key
Terms
What is a process?
A process is any part of an organization that takes Inputs and transforms
them into Outputs
•
Cycle time
(unit item)
•
•
the elapsed time between starting and completing a job
(Average time between completion of units)
Run time
is the time required to produce a batch of parts
(for the batch) (this is calculated by multiplying the time required to
produce each unit by the batch size)
Set-up time
(for the m/c)
is the time required to prepare a m/c to produce an item
7

8. •
Operation time
is the sum of set-up time and runtime for a batch
of parts that are run on a m/c
(for the Batch)
•
Thro’put time
( for the Unit)
the time that the unit spends actually being
worked plus the time spent waiting in
aQ
•
Thro’put Rate
•
Value Added time
(for the Batch)
(for the unit)
•
Thro’put Ratio
is the Output rate that the process is expected to
produce over a period of time
the time in which useful work is actually being
done on the unit
Process Velocity :
the ratio of the total thro’put time to the value added
time
8

9. 9
•
Make-to-order
•
Make-to-stock
•
Hybrid
(Either Unit or
Batch)
(Either Unit or
Batch)
(Unit or Batch )
A process that is activated only in response to an
actual order
A process that produces standard products that are
stored in finished Goods Inventory : the product is
quickly delivered to the customer
Combines the feature of both make-to-order and
make-to-stock
(A generic product is made and customised in a final
process to meet actual orders)

10. Make-to-Order
customer
Customer Order
Product
Production

11. Make-to-Stock
Forecast orders
customer
Production
Customer Order
Product
Finished Goods
Inventory
Product

12. Assemble-to-Order
Forecast orders
customer
Production of
Subassemblies
Customer order
Product
Assembly
of the Order
Subassembly
Inventory
of Subassemblies

13. 13

Efficiency

Productivity

Utilization

Little’s Law
Actual Output
Standard Output
Output
Input
Time activated
Time available
(definition as follows)
Thro’put time = Work-in-Proccess
Thro’put Rate

14. 14
Example: Flowchart of
Student Going to School
Go to
school
today?
No
Abstain
Yes
Drive to
school
Walk to
class

15. 15
Types of Processes
Single-stage Process
Stage 1
Multi-stage Process
Stage 1
Stage 2
Stage 3

16. 16
Other Process Terminology
(Continued)

Bottleneck
– Occurs when the limited capacity of a process
causes work to pile up or become unevenly
distributed in the flow of a process
– If an employee works too slow in a multi-stage
process, work will begin to pile up in front of
that employee. In this case the employee
represents the limited capacity causing the
bottleneck.

Pacing
– Refers to the fixed timing of the movement of
items through the process

17. 17
Other Types of Processes

Make-to-order
– Activated only in response to an actual order
– Both work-in-process and finished goods
inventory kept to a minimum

Make-to-stock
– Process activated to meet expected or
forecast demand
– Customer orders are served from target
stocking level

18. Process Performance
Metrics
18

Operation time = Setup time + Run time

Throughput time = Average time for a unit to
move through the system

Velocity = Throughput time
Value-added time

19. Process Performance
Metrics (Continued)

Cycle time = Average time between
completion of units

Throughput rate =
1
.
Cycle time

Efficiency = Actual output
Standard Output
19

20. Process Performance Metrics
(Continued)

Productivity = Output
Input

Utilization = Time Activated
Time Available
20

21. Cycle Time Example
21
Suppose you had to produce 600 units in 80
Suppose you had to produce 600 units in 80
hours to meet the demand requirements of a
hours to meet the demand requirements of a
product. What is the cycle time to meet this
product. What is the cycle time to meet this
demand requirement?
demand requirement?
Answer: There are 4,800 minutes (60
Answer: There are 4,800 minutes (60
minutes/hour x 80 hours) in 80 hours. So the
minutes/hour x 80 hours) in 80 hours. So the
average time between completions would have
average time between completions would have
to be: Cycle time = 4,800/600 units = 8 minutes.
to be: Cycle time = 4,800/600 units = 8 minutes.

22. 22
Process Throughput Time
Reduction

Perform activities in parallel

Change the sequence of activities

Reduce interruptions

23. 23
Question Bowl
Which of the following are possible
examples of “cycle times”?
a. Time for each television to come off an
assembly line.
b. Time it takes for a stock purchase
c. Time it takes for an instructor to grade
an exam
d. Time it takes to complete an automobile
e. All of the above
Answer: e. All of the above

24. 24
Question Bowl
Which of the following are used as
symbols in a Process Flowchart?
a. Decision points
b. Blocking
c. Starving
d. Bottleneck
e. All of the above
Answer: a. Decision points (A diamond
shaped symbol.)

25. 25
Question Bowl
Which type of process is configured as
follows?
1
2
Single-stage process
b. Multi-stage process
c. Make-to-order process
d. Make-to-stock process
e. All of the above
Answer: b. Multi-stage process
a.
3

26. 26
Question Bowl
a.
b.
c.
d.
e.
When an assembly line employee is waiting
for a unit of work to come down the line so
they can stop being idle and get back to
work, it is an example of which of the
following process terms?
Buffering
Blocking
Starving
Bottleneck
All of the above
Answer: c. Starving

27. 27
Question Bowl
a.
b.
c.
d.
e.
When a company waits until they have an
order for their product in hand before
beginning any production for that order, we
can characterize their operation as which of
the following processes?
Single-stage process
Multi-stage process
Make-to-order process
Make-to-stock process
All of the above
Answer: c. Make-to-order process

28. 28
Question Bowl
a.
b.
c.
d.
e.
If the Run Time for a batch of parts is 45 minutes
on a machine, and the Setup Time is 65 minutes,
which of the following is the Operation Time?
75 minutes
110 minutes
Only 45 minutes
65/45 minutes or 1.44 hours
Can not be computed on the data above
Answer: b. 110 minutes ( Operation Time is the sum of
Run Time and Setup Time, or 65 + 45 = 110 minutes)

29. 29
Question Bowl
If the standard expected phone calls for a
telephone marketers is 24 per hour, and one
telephone marketer did 27 per hour, which of
the following can be used to describe their
Answer: c. 112.5%
Efficiency?
(Ratio of actual
a.
88.8%
performance/expected performance,
b.
100%
or (27/24) x 100 = 110 minutes)
c.
d.
e.
112.5%
Well over 150%
Can not computed on the information given.

30. 30
Solved Problems – OPERATIONS MANAGEMENT
(Class of 2010)
Q5. A processor makes 2 components, A and B, which are then packed together as final product
(each product sold contains one A and one B). The processor can do only one component at a
time: either it can make As or it can make Bs. There is a setup time when switching from A to
B
Current plans are to make 100 units of component A, then 100 units of component B, and then
100 units of A and 100 units of B to be packed to be supplied as 100 units of Final Product
The setup and runtimes for each component are given below:-
Component
Setup / Changeover
Time
Run Time / Unit
A
5 min
0.2 min
B
10 min
0.1 min
Assume that packaging of 2 components is totally automated and takes only 2 seconds / unit
of the final product. The packaging time is small enough that you can ignore it. What is the
average hourly output in terms of no. of units of packaged products (which includes 1 of A
and 1 of B)

31. 31
Answer. In order to make final goods, we have to assemble both component A and
component B.
So, let us find out the final operation time for both the components :
Component A
Operation Time = Setuptime + Runtime (for batch)
= 5 + [ (0.2 × 100)]
= 25 minutes

Component B
Operation Time = Setuptime + Runtime (for batch)
= 10 + [ (0.1 × 100)]
= 20 minutes

32. 32

So, Total Operation Time for 100 nos. of Finished Products ( Excluding Packaging
Time)
= 25 + 20
= 45 minutes / 100 pcs

Now, to find out Average output per Hour
In 45 minutes - - - - - - 100 nos
60 minutes
------ ?
= 60 × 100 = 133.34 units
45
Therefore Average Output per Hour = 134 units