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Operations Management > Process Analysis > Flashcards

Process Analysis Flashcards

1
Q

What is a process?

A

A process transforms inputs into outputs using resources

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2
Q

What is the Process Analysis Methodology?

A

Process Flow Diagram –> Demand & Capacity Analysis –> Congestion Analysis –> Financial/Decision Analysis

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3
Q

What is an activity?

A

Activities are actions to complete tasks in a process

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4
Q

What are resources?

A

These include workforce, tools and equipment

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5
Q

What is the relationship between activities and resources?

A

Activities are carried out by resources

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6
Q

What is the definition of flow time?

A

Flow time is the minimum time for a unit to go through the process

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7
Q

What is the definition of resource capacity?

A

The maximum number of units that a resource can output per unit time

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8
Q

What is the definition of process capacity?

A

-The maximum flow rate that can be achieved in the process
-This is the minimum of all resource capacities
-Therefore, the process capacity is the same as the bottleneck capacity

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9
Q

What is the equation for utilisation?

A

-Utilisation= Flow Rate/ Capacity
-Utilisation measures how much a resource actually produces relative to how much it could produce

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10
Q

How do you reduce flow time?

A

-Decrease work content
-Make some activities parallel
-Reduce waiting time

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11
Q

How do you increase process capacity?

A

-Decrease the unit load of bottleneck resources
-Move work content from bottlenecks to non-bottlenecks
-Increase net availability
-Never have unnecessarily idle bottlenecks

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12
Q

What is the equation for throughput (flow rate)

A

Min (demand/input rate, process capacity)

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13
Q

What is the equation for build up rate?

A

Demand/input rate- process capacity

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14
Q

What is the equation for capacity utilisation?

A

Input Rate/ Process Capacity

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15
Q

When are the use of build up diagrams appropriate?

A

When there is predictable variability in demand

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16
Q

When is the use of queuing theory appropriate?

A

When there is unpredictable variability and arrivals are stochastic

17
Q

What is the relationship between waiting time (t) and utilisation (u)?

A

dt/du>0 and d^2t/du^2>0

18
Q

How can you reduce queues?

A

-Increase the service capacity
-Reduce seasonality and variation in arrivals
-Reduce the variation in service

19
Q

How can you increase the service capacity?

A

-Reduce the length of service time
-Increase staffing or service stations

20
Q

How can you reduce seasonality and variation in arrivals?

A

-Price discounts for off-peak hour service
-Appointment systems

21
Q

How can you reduce the variation in service?

A

-Standardise the service process
-Reduce the involvement of the customer at the scarce resource

22
Q

What is Little’s Law?

A

Inventory= Throughput * Flow Time

23
Q

When does Little’s Law apply?

A

Little’s Law applies to any stationary process

24
Q

What are the sources of variability?

A

-Inflow of flow units
-Processing times
-Random availability of resources
-Random routing in case of multiple flow units in the process

25
Q

What is a stationary arrival process?

A

This is when the inter-arrival time of flow units is constant

26
Q

What is the flow time for a process that has a queuing system?

A

Flow time= Time in queue + Processing Time

27
Q

What are the three factors that affect waiting time?

A

-Processing time
-Utilisation
-Variability of arrival and process times

28
Q

What is the capacity when there are multiple servers?

A

Number of servers/ Processing time

29
Q

How do you calculate the inventory in a queue?

A

Queuing time/ Inter-arrival time

30
Q

What are two cost factors that need to be considered when creating a staffing plan?

A

-Cost of waiting
-Cost of staffing

31
Q

What is resource pooling?

A

This is when two separate systems are combined into a single system

32
Q

What are the effects of pooling?

A

-Capacity doubles
-Demand Doubles
-Utilisation stays the same

33
Q

What are the drawbacks of pooling?

A

-Workforce must have a broader range of skills which may mean higher wages
-Customers value being treated by the same person
-Pooling can introduce additional setup costs
-Pooling can backfire if it combines different customer classes

Operations Management (8 decks)

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