The document discusses process analysis and capacity planning. It begins by defining a process as any part of an organization that takes inputs and transforms them into outputs. Key decisions around capacity and resource utilization can impact productivity and profits. Process flow charting is introduced as a way to visually represent process activities, timings, and flows. Examples of process strategies for different planning premises are provided. Performance metrics for analyzing processes like throughput time and bottlenecks are also outlined. The document concludes with an example of analyzing a toy manufacturing process.

1. Session 6-7
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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Process Analysis

2. Process & Capacity Analysis
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Process: Is any part of an organization that takes
inputs and transforms them into outputs
 Decisions taken with respect to
 The amount of capacity that an operating unit has
 The manner in which the existing capacity is put to use
will lead to loss of productivity & overall reduction in
the profitability of the operating system
 Examples:
 Excessive delay and waiting in service systems such as a
teller counter in a bank
 Some factories working with near 100 percent utilization
of their resources

3. Issues in Process Analysis
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Do I have adequate number of resources to meet
the demand
 If I need to add some extra resources where
should I add?
 What is the utilization of my resources?
 If I need to increase the capacity of my system how
should I modify the process?
 Should I add some more resources?
 What will the cost of my operation?
 One can find answers to the above questions by
process analysis

4. Process Flow Charting
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Design & Analysis of process begins with identification
of
 activities that constitute the process
 time taken for each of the activity
 nature of flow of materials/information in the process.
 A pictorial representation of all these information could
be developed using process flow charting.
 Process flow charting employs a set of standard
symbols and graphical tools to represent all the
information pertaining to the process
 The symbols used are
 A step in the Process
 Transportation (Move)
 Storage or Inventory

5. Process flow chart for Shirt
Manufacturing
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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6. Process Strategy
(Example of PIZZA)

7. Planning Premises in Process Design
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Three generic planning premises are in use in
operations management
 Make-to-Stock (MTS): more amenable for systems with
fewer product varieties and high production volume as
in the case of continuous and streamlined flow systems
 Assemble-to-order (ATO): useful for intermittent flow
systems catering to the mid-volume mid- variety
situations
 Make-to-order (MTO): organizations typically belong
to manufacturer of high product variety (jumbled flow
process systems) use this planning methodology

8. Process Analysis issues for MTS
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 From a process and capacity analysis perspective
MTS is related to mass production systems.
Therefore the relevant questions for process and
capacity analysis are:
 What is the productive capacity of my process per
shift or per day?
 Where is the bottleneck for this process?
 If I need to increase the capacity of the process at
which stage of the process should I invest?
 Can I improve the productive capacity by other
means than investing in new resources?

9. Process Analysis: Performance
Metrics
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Throughput time: Throughput time (TPUT) is the
elapsed time from the first stage of the process to the
last stage of the process. It is also known as lead time.
 Cycle Time: Cycle time is the elapsed time between
two successive output from a process that is
continuously operating in a given period of time.
 Bottleneck: That stage of the process that dictates the
output of a process is the bottleneck.
 TPUT is a relevant measure for MTO systems.
 Measures such as Cycle Time and Bottleneck are
relevant in the case of MTS systems.

10. Process Analysis Example:
Toy Manufacturing
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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Prepare
8 minutes
Pre‐treat
12
minutes
Inspect &
Pack
5 minutes
Paint
20
minutes
Dry
10
minutes
Find
• Throughput time for the process
• The bottleneck in the process
• Cycle time

11. Graphical Representation
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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12. Example
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 Ram runs a small roti shop. People can place their
order over the phone and come and collect the roti.
Orders are taken for a standard pack of 5 rotis. The
entire process is done in batches of 5 rotis only. Roti
making and delivery has five steps. Preparing the
dough (3 minutes), rolling (5 minutes), heating (4
minutes), packing (2 minutes), billing and cash (1
minute). Given this process, answer the following:
 Prepare a process flow chart and identify the bottleneck for
the shop.
 If Ram keeps his shop open for 4 hours, how many roti can
he hope to make?
 What is the utilization of each activity in the process?

13. Example
Dr. Lokesh Vijayvargy, Jaipuria Jaipur
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 A product is manufactured in a shop using a five-stage
process. The first step in the process is to cut the sheet metal
to required shapes and sizes using a shearing process. After
the shearing process, the components are subjected to
pressing operations to alter the shape of the flat sheet as per
the design. In the third stage of the process welding is done to
join the components. The next step in the process is a
painting operation. After painting, the components are packed
and kept ready for dispatch.
 The time take for each of these operations are 20, 30, 15, 12 and
6 minutes respectively.
 Presently, each stage has only one machine for operation.
 Map the process and analyses the capacity with respect to
the following scenarios:
 If the shop works for an 8-hour shift with an effective available
time of 450 minutes, what is the production capacity of the shop?
 Where is the bottleneck in the system? If we want to add one
machine, where should we make the investment?
 Identify the additional capacity required for a daily production

14. Pg. 353; Problem 16

15. Pg. 353, Question 16

16. Pg. 353, Question 16 (Continued)

17. Solution (a)
Company WWW takes order from their customers and
delivers it on the next day.
The entire processes is divided into:
1. Take the order of a customer
2. Pick the order
3. Pack the order for shipping

18. Workstations Capacity per hour Capacity per day
(7 AM - 7PM) = 12 Hours
Take order 100 customers/hour 1200 customers
Pick orders 80 customers/hour 960 customers
Pack orders 60 customers/hour 720 customers
Solution (a)
Bottleneck
Thus, the maximum output is the bottleneck
capacity which is 720 units per day

19. Solution (b)
Maximum Capacity of Order Taker : 1200
customers/day
Picking capacity is 80 customers/hour
Picking Order Station (No. of Working Hours) =
𝑫𝒆𝒎𝒂𝒏𝒅
𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
=
1200
80
= 15
Hours

20. Solution (b) (Continued)
Maximum Capacity of Order Taker : 1200
customers/day
Packing capacity is 60 customers/hour
Picking Order Station (No. of Working Hours) =
𝑫𝒆𝒎𝒂𝒏𝒅
𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
=
1200
60
= 20
Hours

21. Solution (b)
Take Orders
(12 hours)
Pick Orders
(15 hours)
Pack Orders
(20 hours)
3 Hours 5 Hours

22. Workstations Capacity per hour Capacity per day
(7 AM - 7PM) = 12 Hours
Take order 100 customers/hour 1200 customers
Pick orders 80 customers/hour 960 customers
Pack orders 120 customers/hour 1440 customers
Solution (e)
Bottleneck
Thus, the maximum output is the bottleneck
capacity which is 960 units per day
Packing capacity is doubled from 60 customers/hour to 120 customers/hour

23. Solution (e)
Impact on Solution(b)
Maximum Capacity of Order Taker : 1200
customers/day
Packing capacity is 120 customers/hour
Picking Order Station (No. of Working Hours) =
𝑫𝒆𝒎𝒂𝒏𝒅
𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
=
1200
120
= 10
Hours

24. Solution (e)
Impact on Solution(b)
3 Hours 0 Hours
Take Orders
(12 hours)
100
customers
/hour
Pick Orders
(15 hours)
80 customers
/hour
Pack Orders
(10 hours)
120
customers
/hour

25. Pg. 353 Problem 17

26. Pg. 353 Problem 17

27. Solution 17 (a)
T1
Service
Time
5 Mins
T2
Service
Time
5 Mins
T3
Service
Time
5 Mins
T4
Service
Time
5 Mins
T5
Service
Time
5 Mins
T6
Service
Time
5 Mins
T7
Service
Time
5 Mins
T8
Service
Time
5 Mins
Capacity of Each Station =
12 customer/hour
Maximum O/P Capacity (Per Hour) = 12 customer × 8
stations

28. Time Customer
Arriving
4:00 – 4:05 2
4:05 – 4:10 5
4:10 – 4:15 6
4:15 – 4:20 8
4:20 – 4:25 10
4:25 – 4:30 12
4:30 – 4:35 16
4:35 – 4:40 12
4:40 – 4:45 10
4:45 – 4:50 6
4:50 – 4:55 4
4:55 – 5:00 2
5:00 – 5:05 0
Solution 17 (b)

29. Time Customer
Arriving
+
Waiting in
Queue
Tellers
Station
Used
(Max 8)
Customer
Waiting
4:00 – 4:05 2 2 0
4:05 – 4:10 5 5 0
4:10 – 4:15 6 6 0
4:15 – 4:20 8 8 0
4:20 – 4:25 10 8 2
4:25 – 4:30 12 + 2 8 6
4:30 – 4:35 16 + 6 8 14
4:35 – 4:40 12 + 14 8 18
4:40 – 4:45 10 + 18 8 20
4:45 – 4:50 6 + 20 8 18
4:50 – 4:55 4 + 18 8 14
4:55 – 5:00 2 + 14 8 8
5:00 – 5:05 0 + 8 8 0
Solution 17 (b)
8 customers
are waiting by
5.00 Pm
But all
customers
would be
handled by
5.05PM

30. Waiting time is customer waiting
Waiting Time (Each Customer) =
𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝑇𝑖𝑚𝑒 𝑜𝑓 𝐸𝑎𝑐ℎ 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑆𝑡𝑎𝑡𝑖𝑜𝑛𝑠
=
5 𝑚𝑖𝑛𝑢𝑡𝑒 𝑠𝑒𝑟𝑣𝑖𝑐𝑒
8 𝑇𝑒𝑙𝑙𝑒𝑟𝑠
= 0.625 minutes
Solution 17 (c)

31. Time Customer
Arriving
+
Waiting in
Queue
Tellers
Station
Used
(Max 8)
Customer
Waiting
(x)
Expected
Waiting Time
x × 0.625 mins
4:00 – 4:05 2 2 0 0
4:05 – 4:10 5 5 0 0
4:10 – 4:15 6 6 0 0
4:15 – 4:20 8 8 0 0
4:20 – 4:25 10 8 2 1.25
4:25 – 4:30 12 + 2 8 6 3.75
4:30 – 4:35 16 + 6 8 14 8.75
4:35 – 4:40 12 + 14 8 18 11.25
4:40 – 4:45 10 + 18 8 20 12.50
4:45 – 4:50 6 + 20 8 18 11.25
4:50 – 4:55 4 + 18 8 14 8.75
4:55 – 5:00 2 + 14 8 8 5.00
5:00 – 5:05 0 + 8 8 0 0
Solution 17 (c)