OPERATIONS MANAGEMENT : Process Analysis

Capacity

Maximum Output of a process or resource measured as units/time: a rate

Effective capacity is the output that is expected, given maintenance and inefficiencies

Throughput & related measures

Throughput: actual volume through a facility in a period of time

-Throughput time is the length of time that material enters a facility until it exits (to get through the facility)
-Lead time is the time between initialization of an order and receipt of goods, and includes order prep, throughput time, transportation, etc.
-Cycle time is the time between the completion of two units of production (reciprocal of capacity)
-Queue time is the time a job or person waits to be processed

Other Measures

-Utilization: ratio of actual time used to available time for any process or resource
-Setup time: the length of time required to changeover from one product to another (assumes products are produced in batches)
-Inventory: the stock of items used to support production and customer service

Process Mapping

-Purpose: to understand the sequencing of activities in a process so that its performance can be determined

examine existing processes first and then explore alternative processes that lead to improved performance

-Cost and cycle time for each unit through the process can be measured

Posted in: Operations Management