Bottlenecks in a Process
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Bottlenecks in a Process
Arthur Bain
OPS 571
Jim Hoelscher
May 10, 2010
A process is any part of an organization that takes inputs and transforms them into outputs (Richard B. Chase, F. Robert Jacobs, Nicholas J. Aquilano, 2006, p. 154). The goal is for the outputs to be a greater value than the inputs. Process analysis is important to ensure that the process is accomplishing the desired goals. Keeping in mind these desired goals are not just the finished product but the finished product resulting in a profit. If the finished product doesn’t result in a profit then the process is inefficient and must be revised. .A process can be a single stage or a multiple stage process. In a single stage process, all the activities are linked into one stage and can be analyzed as such. In a multiple stage process, all the activities are linked through stages.
In process management, managers focus on cost, quality, flexibility, and speed. These aspects can be measured by process capacity, capacity utilization, flow through rate, flow time, cycle time, process time, idle time, work in process, set up time, direct labor content, and direct labor utilization.
Process capacity is the maximum output of the process. Capacity utilization is the actual percentage of the process being used. Flow through rate is the mean rate in which units past a sa predetermined point in the process. Flow time is amount of time a units requires to pass through the entire process. Cycle time is the elapsed time between units of output. Process time is the mean time a unit is worked on. Idle time is the amount of time when no work is being done. Work in process is the amount of inventory in the process. Set up time is the required time to prepare the equipment necessary to run the process. Direct labor content is the amount of labor used to run the process minus idle time. Direct labor utilization is the percentage of labor used in the process versus the amount of total...
Arthur Bain
OPS 571
Jim Hoelscher
May 10, 2010
A process is any part of an organization that takes inputs and transforms them into outputs (Richard B. Chase, F. Robert Jacobs, Nicholas J. Aquilano, 2006, p. 154). The goal is for the outputs to be a greater value than the inputs. Process analysis is important to ensure that the process is accomplishing the desired goals. Keeping in mind these desired goals are not just the finished product but the finished product resulting in a profit. If the finished product doesn’t result in a profit then the process is inefficient and must be revised. .A process can be a single stage or a multiple stage process. In a single stage process, all the activities are linked into one stage and can be analyzed as such. In a multiple stage process, all the activities are linked through stages.
In process management, managers focus on cost, quality, flexibility, and speed. These aspects can be measured by process capacity, capacity utilization, flow through rate, flow time, cycle time, process time, idle time, work in process, set up time, direct labor content, and direct labor utilization.
Process capacity is the maximum output of the process. Capacity utilization is the actual percentage of the process being used. Flow through rate is the mean rate in which units past a sa predetermined point in the process. Flow time is amount of time a units requires to pass through the entire process. Cycle time is the elapsed time between units of output. Process time is the mean time a unit is worked on. Idle time is the amount of time when no work is being done. Work in process is the amount of inventory in the process. Set up time is the required time to prepare the equipment necessary to run the process. Direct labor content is the amount of labor used to run the process minus idle time. Direct labor utilization is the percentage of labor used in the process versus the amount of total...