Ch.3 Flashcards
Process Analysis
A rigorous framework for understanding the detailed operations of a business
Process Flow Diagrams
The 1st thing you do in process analysis
A graphical way to describe the process
A directional flow in the process
Beginning of the flow as upstream of the process and the end of the process as downstream
The steps are referred to activities
Buffer inventory
Waiting flow units (ex:customers)
Inventory
A mismatch between supply and demand…either or
Processing time
How long the resource takes to complete its work on one flow unit
One step process
One employee is in charge of completing the entire customer order
Capacity
The maximum number of flow units that can be processed by the resource per unit of time
Capacity=1/processing time *60 *60
Demand rate
The # of flow units that customers want per unit of time
Capacity-constrained
Demand exceeds supply and the flow rate is equal to process capacity
The bottleneck resource will have 100% utilization
Demand constrained
If the process capacity exceeds demand, the flow rate will be equal to the demand rate
Flow rate
Throughout
Utilization
Flow time/capacity
Cycle time
1/flow rate
Lead time
The time between a customer placing his or her order and that order being filled
Flow time
Cycle time leads to an increase in lead time
Bottleneck
The resource with the lowest capacity
Constrained by it
Process with multiple resources
Although each resource has its own capacity, we find the process capacity by looking for the smallest capacity in the process (the bottle neck)
Process capacity= Min(Capacity (I))=78.3
Worker paced
Each worker is free to work at his or her own pace
Machine-paces
All steps are connected through a conveyor belt and all of the steps must work at the same rate even if some of them have more capacity than others
Time through the empty system
The time it takes the first flow unit to flow through an empty process, that is, a process that has no inventory
Time through an empty machine paced process
= # of stations * cycle time
Time through an empty worker-paced process
Sum of all processing times
Time that is required to produce a given quantity X starting with an empty system
Time to finish X units starting with an empty system= time through an empty process + ((x-1) *cycle time)
