Operations Management


Process What is a process?
AA process is a series of independent tasks that transforms an input into output material of higher value for the organization
Objective of process: To satisfy customer needs
Process Analysis
Let’s look at the “black box” in more detail…
Why do we need to analyze the process?
-To identify inefficient tasks
-To spot possible effectiveness improvement tasks

-To understand where value can be added

Analyzing Business Process
Inputs.Transformation process.  Outputs


Our purpose is to examine a transformation process from the perspective of flows.
The unit being transformed is typically referred to as a job and can represent a customer, an order, material, money, information, etc
Process flow
Lessons from previous class:
Organization’s strategic position establish what product attributes it aims to provide
Operational effectiveness measures how well its process perform this mission.
To improve any process we need internal measures of process performance that mangers can control to have a competent process in terms of cost, time, flexibility and quality
 Three key internal process flow measures
§Flow Time or throughput time (T): The average time a job spends in the process. The total time spent by a flow unit within process boundaries.
§Inventory (I):  The average number of jobs accumulated in the process. The total number of flow units present within process boundaries at a time t.
Throughput, or Flow Rate (R):  The average rate at which jobs flow through a process (units/time). The number of flow units that flow through a specific point in the process per unit of time

 



Examples:
lysis

If you cannot describe what you are doing as a
process, you do not know what you are doing.
  W.Enalysis
If you cannot describe what you are doing as a
process, you do not know what you are doing.

 
W.E. Deming
If you cannot describe what you are doing as a
process, you do not know what you are doing.

 
W.E. Deming
Process Analysis

If you cannot describe what you are doing as a
process, you do not know what you are doing.

 
W.E. Deming