I. Process Analysis
A. Process Defined
B. Analyzing a Las Vegas Slot Machine
C. Cycle Time Defined
- Utilization Defined
- Process Flowcharting
III. Types of Processes
- Buffering, Blocking, Starving, and Bottleneck Defined
- Make-to-Order, Make-to-Stock, and Hybrid Processes Defined
- Pacing Defined
IV. Measuring Process Performance
A. Productivity and Efficiency Defined
B. Run Time, Setup Time, and Operation Time Defined
C. Throughput Time and Throughput Rate Defined
D. Process Velocity or Throughput Ratio Defined
E. Value-Added Time Defined
- Little's Law Defined
- Process Analysis Examples
A. A Bread-Making Operation
B. A Restaurant Operation
- Planning a Transit Bus Operation
- Process Throughput Time Reduction
Case: Analyzing Casino Money – Handling Processes
Case: Kristen's Cookie Company (A) KEY POINTS
Understanding manufacturing processes is essential to ensuring a firm's competitiveness. A process is any part of an organization that takes inputs and transforms them into outputs that ideally are of greater value to the customer than the original inputs. Using examples of a fast food restaurant and a Las Vegas slot machine, processes are described and cycle time and utilization are presented. Continuing with the slot machine example, the diagram or process flowchart is discussed.
Processes can be either single-stage or multiple-stage. For multiple-stage processes buffers or storage areas exist between manufacturing activities. Key manufacturing issues arising from multiple-stage operations include buffering, blocking, starving, and bottlenecks.
An additional way to classify manufacturing processes is either as make-to-order or make-to-stock. The type of process depends on whether the production is initiated in response to an actual order or whether customer orders are filled from existing finished goods inventories. Hybrid processes combine features of both make-to-order and make-to-stock environments.
Measuring process performance is an important activity. Companies can be compared to others in a benchmarking process, but typically internal measures of productivity are used to assess a firm's performance. Other measures for processes include efficiency, run time, setup time, and operation time along with throughput time and throughput rate. These concepts are illustrated with examples of a bread-making process, a restaurant operation, and a transit bus operation.
The chapter ends with a discussion of ways to reduce throughput time and offers suggestions including performing activities in parallel, changing the sequence of activities, and reducing interruptions.