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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
Q

What is Little’s Law?

A

I = T * R

26
Q

What does the “I” mean in Little’s Law?

A

Inventory
- Average number of items/customers in the queuing system

27
Q

What does the “T” mean in Little’s Law?

A

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
Q

What is the formula for finding the Throughput time?

A

Throughput Time = Processing Time + Waiting Time

29
Q

What does the “R” stand for in Little’s Law?

A

Average Arrival Rate to the system

Average rate of arrival into the system

30
Q

What is the Assumption of Little’s Law?

A

That the system is in a “steady state”

31
Q

What is Little’s Law measuring in terms of progression?

A
  1. Single Process
  2. One Tasks
  3. A flow rate
32
Q

What is the Purpose of Little’s Law?

A

Measuring the number of items in the system

33
Q

What are the progressions after Little’s Law and what are it’s purpose?

A
  1. Single Process Flow
  2. Multiple Process Flow

Purpose = Measuring Operations task capacity and process capacity

34
Q

What is capacity?

A

The maximum output rate that a system can maintain under normal conditions

35
Q

What is another name for Capacity?

A
  1. Capacity of a Task
  2. Capacity of Process (or system)
36
Q

How do you measure Capacity?

A

Capacity = # of Output (maximum) / Time

37
Q

How do you measure Capacity Utilization?

A

Capacity Utilization = Throughput Rate / Capacity

38
Q

What is the throughput rate in Capacity Utilization?

A

The throughput rate is the actual processing rate for the tasks

39
Q

What is the rule for Capacity Utilization?

A

Throughput Rate is less than or equal to Capacity

40
Q

What happens when the maximum capacity is increased or becomes faster?

A

Then the waiting time or processing rate is longer and creates inventory

41
Q

What is a bottleneck?

A

Most constrained task of a process that:
- limits the overall process capacity
- The task has the minimum task capacity

42
Q

What are the four steps in Determining the Process Capacity?

A

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
Q

What determines the minimum process capacity?

A

The bottleneck

44
Q

How do you increase system capacity?

A

Must add capacity to the bottleneck

45
Q

What happens when you add capacity to a non-bottleneck?

A

Does nothing to improve system capacity

46
Q

What two things does the bottleneck govern?

A

1- Throughput Rate
2- Inventory

47
Q

How does the bottleneck govern throughput rate?

A

Needs to have sufficient work-in-process in front of the bottleneck so it is not starved

48
Q

How does the bottleneck govern inventory?

A

Needs to have sufficient storage after the bottleneck so it is not blocked

SCM 352-1004 (7 decks)

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