w6 - Process Configurations and Metrics Flashcards
What is process thinking?
Process thinking is viewing and planning organizations based on how work flows horizontally across activities, rather than focusing on vertical departments.
What is a process map?
A visual representation of the steps in a process, used to analyze, improve, and standardize workflows. Common types include swim lane diagrams and value stream maps.
What are the five common types of process arrangements?
- Continuous flow: High volume, low flexibility, used in industries like gasoline production.
- Assembly line: Standardized production of discrete units, such as cars and phones.
- Batch process: Produces in batches, useful for moderate volume and variety.
- Job shop: High flexibility, low volume, customized production.
- Project: Unique, one-time production, such as construction projects.
How do process arrangements impact cost, flexibility, and variety?
Higher volume processes (e.g., continuous flow, assembly line) tend to have lower costs but lower flexibility and variety. Lower volume processes (e.g., job shop, project) offer high flexibility but at a higher cost.
What is throughput time?
The total time required for a unit to pass through an entire process, from start to finish, including waiting time.
What is cycle time?
The average time between the completion of two consecutive units in a process. It is the inverse of the flow rate.
What is flow rate?
The number of units completed per unit of time, measured in units per second, minute, or hour. Flow rate is the inverse of cycle time.
How are cycle time and flow rate related?
Cycle time is the inverse of flow rate:
Cycle Time = 1 / Flow Rate
Flow Rate = 1 / Cycle Time
What is Little’s Law?
Little’s Law states that the average inventory in a process is equal to the product of throughput time and flow rate:
Inventory = Throughput Time × Flow Rate
What is a bottleneck in a process?
The slowest activity in a process that limits the overall flow rate. Increasing bottleneck capacity can improve the entire process flow.
How can bottlenecks be improved?
- Adding resources (e.g., machines or workers)
- Reducing processing time
- Improving efficiency with automation or better work methods
- Reducing downtime or interruptions
What is capacity utilization?
The ratio of the actual flow rate to the maximum possible capacity of a process. It is calculated as:
Capacity Utilization = Flow Rate / Capacity
What is mass customization?
A strategy combining mass production efficiency with product customization, achieved through modular designs, quick changeovers, and flexible manufacturing.
What is cellular manufacturing?
A hybrid approach that organizes production into self-contained units (cells) to improve flexibility while maintaining cost control, reducing transport and batch delays.
What is the impact of process arrangements on business models?
- Assembly lines support mass production and inventory-based sales.
- Job shops align with make-to-order models.
- Process choice influences inventory management and product life cycle.
How do companies achieve competitive advantage through process design?
- Using innovative process arrangements (e.g., hospital specializing in hernia repair).
- Combining process types under one facility (e.g., bakery with batch and job shop processes).
- Sequencing process types to allow for differentiation (e.g., assembling shirts before customizing collars and cuffs).
