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Chapter 5

Process Analysis

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OBJECTIVES
Process Analysis

Process Flowcharting

Types of Processes

Process Performance Metrics

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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

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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

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Flowchart Symbols
Purpose and Examples
Tasks or operations Examples: Giving an
admission ticket to a
customer, installing a
engine in a car, etc.

Decision Points Examples: How much

change should be
given to a customer,
which wrench should
be used, etc.

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Flowchart Symbols
Purpose and Examples
Storage areas or Examples: Sheds,
queues lines of people waiting
for a service, etc.

Flows of Examples: Customers

materials or moving to a seat,
customers mechanic getting a
tool, etc.

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Example: Flowchart of Student

Going to School

Go to Yes
Drive to Walk to
school school class
today?

No

Goof
off

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Types of Processes

Single-stage Process

Stage 1

Multi-stage Process

Stage 1 Stage 2 Stage 3

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Types of Processes (Continued)

A buffer refers to a storage area between

stages where the output of a stage is placed
prior to being used in a downstream stage

Multi-stage Process with Buffer

Buffer
Stage 1 Stage 2

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Other Process Terminology

Blocking
Occurs when the activities in a 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

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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 is case the
employee represents the limited capacity
causing the bottleneck.
Pacing
Refers to the fixed timing of the movement
of items through the process
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Other Types of Processes

Make-to-order
Only activated 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

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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
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Process Performance Metrics

(Continued)
Cycle time = Average time between
completion of units

Throughput rate = 1 .
Cycle time

Efficiency = Actual output

Standard Output

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Process Performance Metrics

(Continued)

Productivity = Output
Input

Utilization = Time Activated

Time Available

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Cycle Time Example

Suppose you had to produce 600 units in 80

hours to meet the demand requirements of a
product. What is the cycle time to meet this
demand requirement?

Answer: There are 4,800 minutes (60

minutes/hour x 80 hours) in 80 hours. So the
average time between completions would have
to be: Cycle time = 4,800/600 units = 8 minutes.

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Process Throughput Time

Reduction

Perform activities in parallel

Change the sequence of activities

Reduce interruptions

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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 build an automobile
e. All of the above

Answer: e. All of the above

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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.)

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Question Bowl
Which type of process is configured as
follows?

1 2 3

a. 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

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Question Bowl

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?
a. Buffering
b. Blocking
c. Starving
d. Bottleneck
e. All of the above
Answer: c. Starving
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Question Bowl
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?
a. Single-stage process
b. Multi-stage process
c. Make-to-order process
d. Make-to-stock process
e. All of the above

Answer: c. Make-to-order process

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Question Bowl

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?
a. 75 minutes
b. 110 minutes
c. Only 45 minutes
d. 65/45 minutes or 1.44 hours
e. 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)

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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
Efficiency?
Answer: c. 112.5%
a. 88.8%
(Ratio of actual
b. 100% performance/expected performance,
c. 112.5% or (27/24) x 100 = 110 minutes)
d. Well over 150%
e. Can not computed on the information given.

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End of Chapter 5

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