28. 28
1-
PROCESS ANALYSIS AND IMPROVEMENT
ā¢ Strategies to improve process designs focus on:
āIncreasing revenue, agility, and product and/or service quality
āDecreasing costs, process flow time, and carbon footprint
LO 7-5
29. 29
1-
PROCESS ANALYSIS AND IMPROVEMENT
(CONTINUED)
āReengineering: Fundamental rethinking and radical
redesign of business processes
ā¢ Helps achieve improvements in critical and contemporary
measures of performance such as cost, quality, service, and
speed
LO 7-5
31. 31
1-
UTILIZATION AND OPTIMIZATION
Work
Activity #1
[Chef
decides if
order is
accurate]
Work
Activity #2
[Chef stages
raw
materials]
Work
Activity #3
[Chef
prepares
side dishes]
Work
Activity #4
[Oven
Operation]
Work
Activity #5
[Chef
assembles
order]
Order arrival
rate [given] D
20 orders/hr 20 orders/hr 20 orders/hr 20 orders/hr 20 orders/hr
Time per
order
1 minute 4 minutes 12 minutes 10 minutes 3 minutes
Number of
resources N
1 chef 1 chef 1 chef 1 oven 1 chef
Output per
time period
[capacity] SR
60 orders/hr 15 orders/hr 5 orders/hr 6 orders/hr 20 orders/hr
Resource
Utilization
33% 20/(15 x 1) =
133%
400%
1.0 = 20/(5 x
N)
N = 4
333%
1.0 = 20(6 X
N)
N = 3.33 = 4
100%
Where are the bottlenecks?
How can we fix it?
32. 32
1-
UTILIZATION AND OPTIMIZATION
Work
Activity #1
[Chef
decides if
order is
accurate]
SR = 60
Work
Activity #2
[Chef stages
raw
materials]
SR = 15
Work
Activity #3
[Chef
prepares
side dishes]
SR = 5
Work
Activity #4
[Oven
Operation]
SR = 6
Work
Activity #5
[Chef
assembles
order]
SR = 20
Resource
Utilization
with 4 chefs
and 4 oven
U = 20/(60 X
4) = 8.3%
33% 100% 83.3% 25%
33. 33
1-
UTILIZATION AND OPTIMIZATION
Work
Activity #1
[Chef
decides if
order is
accurate]
Work
Activity #2
[Chef stages
raw
materials]
Work
Activity #3
[Chef
prepares
side dishes]
Work
Activity #4
[Oven
Operation]
Work
Activity #5
[Chef
assembles
order]
Order arrival
rate [given]
20 orders/hr 20 orders/hr 20 orders/hr 20 orders/hr 20 orders/hr
Time per
order
1 minute 4 minutes 12 minutes 10 minutes 3 minutes
Number of
resources
4 chefs 4 chefs 4 chefs 4 ovens 4 chefs
Output per
time period
[SR x N]
240 orders/hr 60 orders/hr 20 orders/hr 24 orders/hr 80 orders/hr
Resource
Utilization
8.33% 33% 100% 25%
Revised utilization analysis with 4 chefs & 4 ovens
What questions are you left with? Next steps?