Process Analysis Flashcards
Process Charts
charts that use symbols to analyze the movement of people or material
allows managers to focus on value-added activities and to compute the percentage of value-added time
Process Analysis
used for easier communication and training and helps identify opportunities
Process improvement overview
recognize the need for change
research best practices (benchmark)
determine how to change (tinker or tear down)
Recognizing the need for change
Internal Leading: excessive delays, high rework
Internal Lagging: excessive overtime, employee turnover
External leading: customer complaints, product returns
External lagging: declining market share, declining financial performance
Benchmarking
is the formal process of comparing an organization’s processes and performance measures against top performers
Types of benchmarking
internal: appropriate for organizations with multiple locations
competitive: often difficult to get information on other companies
Functional: order entry, service parts logistics
Continious process improvment (CPI)
Never ending process of acheiving incremental improvements (tinker)
Business process reengineering (BPR)
short term radical process improvement (BPR)
Reengineering
is the process of rethinking and restructuing. it requires discontinuous thinking
The need for BPR
technological advancements (disruptive tech(
drastic improvements at a compeitiror
changing customer desires
Disruptive technology
new technological innovation, product or service that eventually overturns the existing dominant technology in the market, despite the fact that the disruptive technology is both radically different than the leading technology and that it often initially performs worse than the leading technology according to existing measures of performance
CPI Employee Involvement
crossfunctional teams
need for training in problem
adequate time to be creative
company culture is key
Just in Time Lead production
coordinated appraoch that continuously reduces waste removing variability, improving throughput while also improving quality
assumes stable environment
Just in Time Pull System
card system that is an authorization for the next container material to be produced
sequence of kanbans pulls material through the process
many different sorts of signals are used and its a self-regulating system for controlling the flow of material –> workers produce only when the kanban ahead of them is empty
minimized unnecessary inventory that would accumulate in a push system
Dyanmic market losgistics
Pick BPR
Scrap and rebuild
one big step of pae
dramatic effect
individual champions
large investment little effort to maintain