Scribd
Upload
10 views

Process Analysis

Process Analysis slides

Uploaded by

amitiimk83
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views

Process Analysis

Process Analysis slides

Uploaded by

amitiimk83
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

PROCESS ANALYSIS

2
PROCESS ANALYSIS

 Process: any part of an organization that takes inputs and transforms them into
outputs

 Cycle time: the average successive time between completions of successive units

 Utilization: the ratio of the time that a resource is actually activated relative to the
time that it is available for use

3
LITTLE’S LAW

 Total average value of inventory


 Sum of the value of raw materials, work-in-process, and finished goods inventory

 Inventory turns
 Cost of goods sold divided by the average inventory value

 Days-of-supply
 Inverse of inventory turns scaled to days

 Little’s law
 There is a long-term relationship among inventory, throughput, and flow time

Inventory = Throughput rate x Flow time

4
EXAMPLE – CAR BATTERIES

 Average cost $45

 12 hours to make a car

 Assembles 200 cars per 8-hour shift


 Currently one shift

 Holds on average 8,000 batteries in raw material inventory

Question: What is the total number of batteries in plant on average?


How much are they worth? How many days of supply are held in raw
material inventory?

5
EXAMPLE – CAR BATTERIES

6
REDUCING PROCESS FLOW TIME

7
A SIMPLE PROBLEM

8
A SIMPLE PROBLEM - EXTENDED

9
A SIMPLE PROBLEM – EXTENDED (2)

10
THE QUESTION!
The company wants to
know whether the changes
have improved service
performance?

11
THE PROCESS MAP

12
13
 In Process I, each application spent, on average of 15 days with the company
before receiving an accept/reject decision

 What about Process 2?

 It involves multiple steps, so it makes sense to focus on the flowchart. On


average 1,000 application arrive per month for initial review. After initial
review 50% of these are rejected, 25% are categorized as Type A (excellent),
25% as type B (more detailed evaluation)
 Further analysis of Type A: 70% rejected & 30% accepted

Further analysis of Type B: 10% accepted & 90% rejected


Each month, an average of 200 applications get accepted and 800 rejected

14
15
16

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy