Operations Management

Module 4 : Process Analysis

S.Balachandran
December 2007

In this session . . .

December 2007

Process Terminology
Process Flowcharting
Types of Processes
Process Performance Metrics

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Process Terms
Process: A sequence of operational steps in
any part of an organization that takes inputs
and transforms them into outputs
Cycle Time: Average time between
completions of successive steps in a
process
Utilization: Ratio of the time that a resource
is actually activated relative to the time that it
is available for use
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Process Flowcharting
Inspection

Tasks or operations

Decision Points

Delay / Waiting

Storage areas or
queues
Flows of materials
or customers

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Types of Processes

Single-stage Process
Stage 1

Multi-stage Process
Stage 1

December 2007

Stage 2

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Stage 3

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Flowchart Example : Car Repair

Customer
drops off
car

Mechanic
makes
diagnosis*

Discuss
needed
work with
customer*

* = Points critical to the success of the service

December 2007

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Flowchart Example : Car Repair

Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Discuss
needed
work with
customer*

Repair not authorized

Customer
departs
with car
* = Points critical to the success of the service

December 2007

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Flowchart Example : Car Repair

Service visible to customer
Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Discuss
needed
work with
customer*

Repair not authorized

Customer
departs
with car
* = Points critical to the success of the service

December 2007

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Flowchart Example : Car Repair

Service visible to customer
Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Parts
available

Discuss
needed
work with
customer*

Check
parts
availability

Perform
work

Parts not
available
Order
parts

Repair not authorized

Customer
departs
with car
* = Points critical to the success of the service
= Points at which failure is most often experienced

December 2007

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Flowchart Example : Car Repair

Service visible to customer
Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Parts
available

Discuss
needed
work with
customer*

Check
parts
availability

Perform
work

Parts not
available
Order
parts

Repair not authorized

Inspect/
test and
repair

Corrective
work
necessary
Repair complete

Customer
departs
with car

Perform
corrected
work

* = Points critical to the success of the service

= Points at which failure is most often experienced

December 2007

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Flowchart Example : Car Repair

Service visible to customer
Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Service not visible to customer

Parts
available

Discuss
needed
work with
customer*

Check
parts
availability

Perform
work

Parts not
available
Order
parts

Repair not authorized

Inspect/
test and
repair

Corrective
work
necessary
Repair complete

Customer
departs
with car

Perform
corrected
work

* = Points critical to the success of the service

= Points at which failure is most often experienced

December 2007

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Flowchart Example : Car Repair

Service visible to customer
Repair
authorized
Customer
drops off
car

Mechanic
makes
diagnosis*

Service not visible to customer

Parts
available

Discuss
needed
work with
customer*

Check
parts
availability

Perform
work

Parts not
available
Order
parts

Repair not authorized

Inspect/
test and
repair

Corrective
work
necessary
Customer
departs
with car

Collect
payment

Notify
customer

Repair complete

Perform
corrected
work

* = Points critical to the success of the service

= Points at which failure is most often experienced

December 2007

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Flowchart Example : Hospital

Process:
Subject:
Beginning:
Ending:

Emergency room admission

Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

Step
no.

December 2007

Time
(min)

Summary
Activity

Number
of steps

Time
(min)

Distance
(ft)

Operation
Transport
Inspect
Delay
Store

Distance
(ft)

Step description

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Flowchart Example : Hospital

Process:
Subject:
Beginning:
Ending:

Emergency room admission

Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

Step
no.

1
2
3
4
5

December 2007

Time
(min)

Summary
Activity

Number
of steps

Time
(min)

Distance
(ft)

Operation
Transport
Inspect
Delay
Store

Distance
(ft)

Step description
Enter emergency room, approach patient window
Sit down and fill out patient history
Nurse escorts patient to ER triage room
Nurse inspects injury
Return to waiting room

6
7
8
9
10

Wait for available bed

Go to ER bed
Wait for doctor
Doctor inspects injury and questions patient
Nurse takes patient to radiology

11
12
13
14
15

Technician x-rays patient

Return to bed in ER
Wait for doctor to return
Doctor provides diagnosis and advice
Return to emergency entrance area

16
17
18
19

Check out
Walk to pharmacy
Pick up prescription
Leave the building

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Flowchart Example : Hospital

Process:
Subject:
Beginning:
Ending:

Emergency room admission

Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

Figure 3.8
December 2007

Step
no.

Time
(min)

Distance
(ft)

1
2
3
4
5

0.50
10.0
0.75
3.00
0.75

15
40
40

6
7
8
9
10

1.00
1.00
4.00
5.00
2.00

60
200

11
12
13
14
15

3.00
2.00
3.00
2.00
1.00

200
60

16
17
18
19

4.00
2.00
4.00
1.00

180
20

Summary
Activity

Number
of steps

Time
(min)

Distance
(ft)

Operation
Transport
Inspect
Delay
Store
Step description

Enter emergency room, approach patient window

Sit down and fill out patient history
Nurse escorts patient to ER triage room
Nurse inspects injury
Return to waiting room

X
X
X
X
X

Wait for available bed

Go to ER bed
Wait for doctor
Doctor inspects injury and questions patient
Nurse takes patient to radiology

Technician x-rays patient

Return to bed in ER
Wait for doctor to return
Doctor provides diagnosis and advice
Return to emergency entrance area

X
X
X
X
X
X
X
X
X

Check out
Walk to pharmacy
Pick up prescription
Leave the building

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Flowchart Example : Hospital

Process:
Subject:
Beginning:
Ending:

Emergency room admission

Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

December 2007

Step
no.

Time
(min)

Distance
(ft)

1
2
3
4
5

0.50
10.0
0.75
3.00
0.75

15
40
40

6
7
8
9
10

1.00
1.00
4.00
5.00
2.00

60
200

11
12
13
14
15

3.00
2.00
3.00
2.00
1.00

200
60

16
17
18
19

4.00
2.00
4.00
1.00

180
20

Summary
Activity
Operation
Transport
Inspect
Delay
Store

Number
of steps

Time
(min)

Distance
(ft)

5
9
2
3

23
11
8
8

815

Step description
X

Enter emergency room, approach patient window

Sit down and fill out patient history
Nurse escorts patient to ER triage room
Nurse inspects injury
Return to waiting room

X
X
X
X
X
X

Wait for available bed

Go to ER bed
Wait for doctor
Doctor inspects injury and questions patient
Nurse takes patient to radiology

Technician x-rays patient

Return to bed in ER
Wait for doctor to return
Doctor provides diagnosis and advice
Return to emergency entrance area

X
X
X
X
X
X
X
X

Check out
Walk to pharmacy
Pick up prescription
Leave the building

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Flowchart Example : Hospital

Process:
Subject:
Beginning:
Ending:

Emergency room admission

Ankle injury patient
Enter emergency room
Leave hospital
Insert Step
Append Step
Remove Step

December 2007

Step
no.

Time
(min)

Distance
(ft)

1
2
3
4
5

0.50
10.0
0.75
3.00
0.75

15
40
40

6
7
8
9
10

1.00
1.00
4.00
5.00
2.00

60
200

11
12
13
14
15

3.00
2.00
3.00
2.00
1.00

200
60

16
17
18
19

4.00
2.00
4.00
1.00

180
20

Summary
Activity
Operation
Transport
Inspect
Delay
Store

Number
of steps

Time
(min)

Distance
(ft)

5
9
2
3

23
11
8
8

815

Step description
X

Enter emergency room, approach patient window

Sit down and fill out patient history
Nurse escorts patient to ER triage room
Nurse inspects injury
Return to waiting room

X
X
X
X
X
X

Wait for available bed

Go to ER bed
Wait for doctor
Doctor inspects injury and questions patient
Nurse takes patient to radiology

Technician x-rays patient

Return to bed in ER
Wait for doctor to return
Doctor provides diagnosis and advice
Return to emergency entrance area

X
X
X
X
X
X
X
X

Check out
Walk to pharmacy
Pick up prescription
Leave the building

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Process Flow Terms

Buffering
Storage area between process stages where output of a stage is
placed prior to being used in a downstream stage

Blocking
Occurs when the activities in a process stage must stop because
there is no place to deposit the item just completed
If there is no room for an employee to place a unit of work down,
the employee will hold on to it not able to continue working on the
next unit

Starving
Occurs when the activities in a stage must stop because there is
no work
If an employee is waiting at a work station and no work is coming
to the employee to process, the employee will remain idle until the
next unit of work comes
December 2007

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Process Flow Terms

Bottleneck
Occurs when the limited capacity of a process step
causes work to pile up or become unevenly distributed in
the flow of a process
If an employee or machine works too slow in a multistage process, work will begin to pile up in front of that
employee or machine. 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 (e.g., Conveyor Belt in Assembly
Line)

December 2007

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Generic Process Types

Make-to-order
Only activated in response to an actual order

Inventory : both work-in-process and finished

goods kept to a minimum

Make-to-stock
Process activated to meet expected or forecast
demand

Customer orders are served from target stocking

level
December 2007

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Process Performance Metrics

Operation time = Setup time + Run time
Throughput time = Average time for a unit to
move through the system
Velocity = Throughput time
Value-added time
Cycle time = Average time between completion of units
Throughput rate =
1
.
Cycle time
Efficiency = Actual output
Standard Output
Productivity = Output
Input
Utilization = Time Activated
Time Available
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Performance Metrics - Linkages

December 2007

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Reducing Throughput Time

Use Flowcharts to analyse Process

Eliminate unnecessary activities

Perform activities in parallel
Change the sequence of activities
Reduce interruptions and delays
Reduce duration of bottleneck activities

December 2007

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