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SCM 352-1004 > Session 3 - Process Flow Analysis > Flashcards

Session 3 - Process Flow Analysis Flashcards

1
Q

What is “Customization” in the Process Matrix?

A

Different product for each customer at a high cost

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2
Q

What is “Mass Customization” in the Process Matrix?

A

Different product for each customer at approximately the same cost as mass production

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3
Q

What is “Mass Production” in the Process Matrix?

A

High-volume standardized product with few options at low average unit cost

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4
Q

What are the three ways to achieve Mass Customization?

A
  1. Modular Design & Assemble-to-Order
  2. Fast Changeover
  3. Postponement of Options
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5
Q

What are the two different views in Process Thinking for an Organization?

A
  1. Functional View of Organization
  2. Process View of Organization
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6
Q

What is a process?

A

A process is a collection of tasks, connected by the flow of goods and information, that transforms various inputs into more valuable outputs.

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7
Q

“What” is a collection of interconnected processes?

A

Businesses

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8
Q

How do you apply process thinking to businesses?

A
  1. Define system boundaries
  2. Involve cross-functional teams for systems analysis
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9
Q

What is a process flowchart?

A

A visual diagram to represent a transformation process

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10
Q

How to apply the Process Flowchart?

A
  1. Visually describe the current process
  2. Reveal ways of improving the current process
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11
Q

What are alternative names of Process Flowchart?

A
  1. Process Mapping
  2. System Flowchart
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12
Q

What are the types of Process Flowcharts?

A
  1. Linear Flowchart
  2. Swim Lane Flowchart
  3. Opportunity Flowchart
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13
Q

What are other names for a Linear Flowchart?

A
  1. System Flowchart
  2. Activity Flowchart
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14
Q

What is the process in a Linear Flowchart?

A

It draws from the perspective of one function and shows the discrete steps in fulfilling some tasks

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15
Q

What is the process for a Swim Lane Flowchart?

A
  1. Capture the perspective of several functions (or roles)
  2. Show how the work flows and who is responsible for each step
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16
Q

What is another name for a Swim Lane Flowchart?

A

Deployment Flowchart

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17
Q

What is the process for an Opportunity Flowchart?

A

Identify “value-added” tasks and “non-value-added” tasks

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18
Q

What are examples for each of the three process flowcharts?

A

Linear - Selecting a Supplier

Swim Lane - Emergency or Lab Test Process

Opportunity - Installing Software

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19
Q

What are the steps in Developing a Process Flowchart?

A
  1. Select a “process” to study
  2. Form “a team” to develop and analyze a flowchart
  3. “specify the boundaries” of the process
  4. Identify and sequence the “operational steps”
  5. Identify the performance metrics for the steps (e.g. time to complete each step”
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20
Q

What are the differences between “Value-Added” tasks and “Non-value-added” tasks in an Opportunity Flowchart?

A

Value added tasks - generate process output and identifies what a customer is willing to pay for a certain product

Non-value - is not required to product the output. It does not add value to the output and the steps are not required if everything works correctly

21
Q

What does the “Reflecting and Redesigning” part of the Process Flowchart do?

A
  1. Identify value-added tasks
  2. Reach consensus
  3. Improve Process
  4. Identify investment opportunities
22
Q

What are the benefits of the Process Flowchart?

A
  1. Create process transparency
  2. Make knowledge explicit and codified
  3. Train new employees
  4. Evidence of control to facilitate regulation auditing
23
Q

What are the downsides to the Process Flowchart?

A
  1. Documents, Documents, Documents (a lot of paperwork)
  2. Structures become shackles
24
Q

What is used to determine the process performance for Queuing Systems?

A

Little’s Law

25
What is Little's Law?
I = T * R
26
What does the "I" mean in Little's Law?
Inventory - Average number of items/customers in the queuing system
27
What does the "T" mean in Little's Law?
Throughput Time - Average Time an item stays in the system or Average time it takes from customers arrival until customer gets served - It's from when processing begins until the product or service is complete - Throughput Time = Processing Time + Waiting time
28
What is the formula for finding the Throughput time?
Throughput Time = Processing Time + Waiting Time
29
What does the "R" stand for in Little's Law?
Average Arrival Rate to the system Average rate of arrival into the system
30
What is the Assumption of Little's Law?
That the system is in a "steady state"
31
What is Little's Law measuring in terms of progression?
1. Single Process 2. One Tasks 3. A flow rate
32
What is the Purpose of Little's Law?
Measuring the number of items in the system
33
What are the progressions after Little's Law and what are it's purpose?
1. Single Process Flow 2. Multiple Process Flow Purpose = Measuring Operations task capacity and process capacity
34
What is capacity?
The maximum output rate that a system can maintain under normal conditions
35
What is another name for Capacity?
1. Capacity of a Task 2. Capacity of Process (or system)
36
How do you measure Capacity?
Capacity = # of Output (maximum) / Time
37
How do you measure Capacity Utilization?
Capacity Utilization = Throughput Rate / Capacity
38
What is the throughput rate in Capacity Utilization?
The throughput rate is the actual processing rate for the tasks
39
What is the rule for Capacity Utilization?
Throughput Rate is less than or equal to Capacity
40
What happens when the maximum capacity is increased or becomes faster?
Then the waiting time or processing rate is longer and creates inventory
41
What is a bottleneck?
Most constrained task of a process that: - limits the overall process capacity - The task has the minimum task capacity
42
What are the four steps in Determining the Process Capacity?
1- Choose a "system-wide measure" of capacity to be used for all step 2- Find the "capacity of each individual step" in units of the system-wide capacity measure 3- Identify the Bottleneck 4- Determine the "Process (or system) capacity - the process capacity = capacity of bottleneck
43
What determines the minimum process capacity?
The bottleneck
44
How do you increase system capacity?
Must add capacity to the bottleneck
45
What happens when you add capacity to a non-bottleneck?
Does nothing to improve system capacity
46
What two things does the bottleneck govern?
1- Throughput Rate 2- Inventory
47
How does the bottleneck govern throughput rate?
Needs to have sufficient work-in-process in front of the bottleneck so it is not starved
48
How does the bottleneck govern inventory?
Needs to have sufficient storage after the bottleneck so it is not blocked

SCM 352-1004 (7 decks)

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