IES 303

1
IES 303

• Chapter 4 Process Analysis
• Objectives
• Introduce some practical tools used in
  designing and improving processes
• Week 4
• Dec 1, 2005

2
Process Analysis

• Understanding how process work is essential to
  ensuring the competitiveness of a company

Example of 2 fast-food restaurants If restaurant
A can delivery a hamburger to customer for 0.50
in direct costs and restaurant B costs 0.75,
____________________________________________ _____
_______________________________________ __________
__________________________________
3
Objectives of Process Analysis

• To be able to answer the following key questions
• How many customers can the process handle per
  hour?
• How long will it take to serve a customer?
• What change is needed in the process to expand
  capacity?
• How much does the process cost?
• What part of process should be improved or
  eliminated in order to reduce non-value added
  cost?

4
Measuring Process Performance

• Productivity
• Ratio of output to input
• ________________________________________________
• Efficiency
• Ratio of actual output of a process relative to
  some standard
• ________________________________________________
• Throughput Time
• ________________________________________________
• Utilization
• ________________________________________________

5
A Systematic Approach to Process Analysis
1
Figure 4.2
6
Flowchart of the Sales Process for a Consulting
Company
Figure 4.3
7
Flowchart of Nested Subprocess of Client
Agreement and Service Delivery Step
Figure 4.4
8
Flowchart of the Process Showing Handoffs Between
Departments
Figure 4.5
9
Flow Diagrams
Service not visible to customer
Points critical to the success of the service
Figure 4.6
Points at which failure is most often
experienced
10
Process Charts
11
Recommended readings

• Work measurement at United Parcel Service (UPS)
  from Operations Management for Competitive
  Advantages, page 192
• Customer-Driven Service for McDonalds
  Self-ordering kiosks and environment from
  Operations Management for Competitive Advantages,
  page 153 - 154

12
Case Exercise

• Select a process (service or manufacturing)
• Example of service system
• MK restaurant (dine-in or delivery)
• SIIT registration process
• Write a flow diagrams and/or process chart for
  its operations

13
Pareto Charts
Figure 4.9
Figure 4.10
14
Cause-and-Effect DiagramEx Checker Board
Airlines
Figure 4.11
15
Tools for Improving Quality Wellington Fiber
Board Co.

• Step 1Checklist
• Step 2Pareto chart
• Step 3Cause-and-effect diagram
• Step 4Bar chart

16
Wellington Fiber Board Co.
Checklists
Figure 4.12
17
Wellington Fiber Board Co.
Pareto Chart
Figure 4.12
18
Wellington Fiber Board Co.
Cause-and-Effect Diagram
Figure 4.12
19
Wellington Fiber Board Co.
Bar Chart
Figure 4.12
20
Next weekCase Joses Authentic Mexican
Restaurant

• Read and analyze the case Joses Authentic
  Mexican Restaurant, textbook page 166
• Answer the posted questions. Also perform and
  construct any applicable graphical displays in
  analyzing the problem.