Process Design

Question 1

What is a process?

Answer 1

It’s a set of activities (e.g. operations, storage, transport) that have an input and an output whose final result is of value to the customer.

Question 2

What are the five process design objectives?

Answer 2

1. Quality
2. Speed (Minimum throughput time)
3. Dependability (e.g. Deliver on time)
4. Flexibility (To meet customer needs)
5. Cost (Eliminate process waste, e.g. errors and delays)
6. Environmental friendly

Question 3

PS: Define:

1. Cycle/takt time
2. Throughput rate
3. Throughput time
4. Work in progress
5. Resource utilisation

Answer 3

Throughput rate: Rate at which items emerge from a process. Number of items passing through the process per unit of time (e.g we serve 200 cups of coffee every hour)
Throughput time: average elapsed time taken for items to pass through a process and become outputs; like the total time it takes to finish producing the required output for example.(e.g it took an average of 4 seconds for Wessex card holders to get past the driver)
Cycle time: Time between items emerging from a process (Time needed to produce one item)
Work in progress/in-process inventory: Number of items in the process as an average over a period of time
Resource utilisation: proportion of available time that the resources within the process are performing useful work.

PS: Little’s Law: Throughput time = WIP x Cycle Time

Question 4

Variety or volume?

Answer 4

High volume usually necessitates low variety (e.g. electricity utility).
Low volume usually necessitates high variety (e.g. architect’s practice).

Question 5

What is process design?

Answer 5

This considers variety and volume required, types of activities needed, and the sequence that these activities should be executed.

Question 6

What are the four V’s?

Answer 6

1. Volume (of output) e.g. McDonald’s
2. Variety (of output) e.g. Taxi services
3. Variation (of output) e.g. Summer vacation hotel
4. Visibility (of creation of output) e.g. Design your own lipstick

These are the characteristics of operations processes and influence how processes are managed.

Question 7

List the five manufacturing process types.

Answer 7

1. Project processes e.g. software design and movie production
2. Jobbing processes e.g. bespoke tailors (Products share the same resources to be constructed)
3. Batch processes e.g. machine tool manufacturing and automobile parts manufacturing
4. Mass processes e.g frozen food production and automatic parking lines
5. Continuous processes e.g. water processing and electricity utilities.

Question 8

List the three service process types.

Answer 8

1. Professional services e.g. management consultants and lawyers’ practices
2. Service shops e.g. banks and high-street shops
3. Mass services e.g. supermarkets and airports

Question 9

What is process mapping and what is its objective?

Answer 9

An organised way to document all the activities performed.

The objective of process mapping is to identify room for improvement.

Question 10

List the five categories of activities carried out in businesses.

Answer 10

O-Operations
T-Transportation
I-Inspection
D-Delay
S-Storage