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Hamid Lecture For Process Flow
Hamid Lecture For Process Flow
Class #2
Toyotas Way
What is Toyota doing now?
http://www.youtube.com/watch?v=kq4JVkkCzKY
Littles Law
Example
A major manufacturer sells $300 million worth of
cellular equipment per year. Average amount in
accounts receivable is $45 million. What is the
average elapse time from the time a customer is
billed to the time payment is received?
7-4
Symbols for Flow-Process Chart
Operation (a task or work activity)
7-5
FLOW PROCESS CHART ANALYST PAGE
Job Requisition of petty cash D. Kolb 1 of 2
Details of Method
Requisition made by department head
Put in pick-up basket
To accounting department
Account and signature verified
Amount approved by treasurer
Amount counted by cashier
Amount recorded by bookkeeper
Petty cash sealed in envelope
Petty cash carried to department
Petty cash checked against requisition
Receipt signed
Petty cash stored in safety box
7-6
7-7
Questions to ask when adopting a process
view
1. What are the process boundaries: what is the input and output?
2. What is the flow unit or the unit of analysis?
3. Attach yourself to the flow unit and record its process steps through the
process
What are the value-added and necessary activities? What are the
associated processing times or work content?
Where does the flow unit wait (buffers)? What are the associated waiting
times?
What are the routes a flow unit can take? What are necessary precedence
relationships? (i.e., what must be done sequentially?)
Note that the first improvement step will be to delete non-value-added and
unnecessary activities and buffers = waste
Questions to ask when adopting a process
view (Cont.)
4. Who does the work? What are the resources for each activity?
What are all the activities a given resource performs? (cross-training ,
flexibility)
What are the resource constraints? What determines the flow rate?
(demand or capacity)
Key for Capacity Analysis
How is quality measured?
What is the cost of each resource?
5. What information is required to perform each activity? Where does this
information come from? This specifies the information flow (dashed lines)
Case Study
Patients - 80
New 80 Follow-up - 48
(40% of total patients) (60% of total patients)