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# Buspro infosheet6

## on Jan 28, 2014

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## Buspro infosheet6Presentation Transcript

• Process Analysis “If you cannot describe what you are doing as a process, you do not know what you are doing.” W.E. Deming
• What is a process? A process is a series of independent tasks that transforms an input into output material of higher value for the organization Examples: 1. Honda transforms steel, rubber, and plastic into cars 2. McDonald’s transforms meat, potatoes, and sauces into packaged food 3. Dell transforms customer orders into PC’s
• Process Analysis 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 How can we analyze a process? Map it! What are the relevant performance measures?
• Process Analysis: the performance measures Assume a process is in place. What do we need to measure in order to understand how efficient it is? Task 1 Task 2 Task 3 • What is its capacity? How many units per unit time go through each task? The process as a whole? • What is the bottleneck? Which production step limits the process capacity? • What is the throughput time? How long does it take to get through the system?
• How do we measure capacity? Capacity of a task is the physical limitation in terms of “how much can be processed at this task” Cycle Time: Average time for completion of a unit at a production step or process. Does not include waiting. Measured as time/unit Throughput Rate: Average number of units processed over a time interval. Measured as units/time Key relationship Throughput rate = 1 Cycle Time Capacity = throughput rate
• Computing Cycle Times Processing a fixed amount of work Example: Producing 100 cars. On average, production takes 5 hours per car. It takes 50 hours to set up the production line. Cycle Time = Set-up Time + (Batch size) x (Time per unit) Batch size
• Computing Cycle Times Setup time: 15 min Production Time: 25min/unit A B Question: What is the cycle time between points A and B of the process, if we work in batches of 10?
• What is a bottleneck? Bottleneck is the process stage with the smallest throughput rate (longest cycle time) Which task is the bottleneck? 3 units/hr 5 units/hr 2 units/hr
• Capacity of a process The capacity of the process is: minimum throughput rate at any of the stages What is the capacity of this process? 3 units/hr 5 units/hr 2 units/hr
• How do we measure throughput time? Throughput Time: Average time that a unit takes to go through the entire process (including waiting time). Measured as time Work in Process(WIP): Average number of units in system over a time interval. Measured as units Key relationship WIP Throughput time Throughput rate = (Little’s Law)
• 3 Stages to Flow Improvement 1 - See the current state 2 - Analysis 3 - Take action to apply flow improvement principles
• Stage 1- Current State Flow Analysis Tool: 4 elements • • • • Process steps Communication steps Responsible clinically Responsible for each part of the process