Chapter 3 Terms Flashcards
Process
system of structured activities that use resources to transform inputs (energy, materials and info) into valuable outputs
Process thinking
a way of viewing activities in an organization as processes rather than departments or functional areas
Anatomy of a process 4 defining characteristics
Activities
Inputs/outputs/flows
Process structure
Management policies
5 Activities of a Process
Operation Transportation Inspection Delay Storage
Operation
any activity that transforms an input (physical transformations)
Transportation
any activity that moves an input from one place to another without transforming its other characteristics
Inspection
checks or verifies the results of another activity (inspection comparing to a standard)
Delay
occurs when the flow of an input is unintentionally stopped as a result of interference (insufficient operating capacity)
Storage
an activity where items are inventoried under formal control
Process capabilities
types of outputs and levels of performance that a process can generate
Process Capacity
limit on the amount of output that a process can produce given an amount of inputs and resources made available (machine hours, labor hours, tools etc…)
Maximum Capacity
highest output rate that an activity or a process can achieve under ideal conditions in the short term
Effective Capacity
taking into account the potential for disruptions in process flows, worker fatigue, machine breakdowns, preventative maintenance…etc
Utilization
defined as the percentage of process capacity that is actually used
Three Capacity Strategies
Lead, respond to average demand, lag
Bottleneck
constraining activity in the process that limits the overall output
Flow time equation
Inventory/Throughput Rate
Flow time
the time a unit spends being processed plus the time waiting to be processed
Cycle time
the time a unit spends being processed at a given operation in the overall process
Throughput Rate
how many units per specific time period can be produced
Wait time
effected by both the level of variance and the level of utilization
Types of Processes
Strategic planning Innovation Customer Service Resource Management Human Resource management Supply management Performance management
Effective Process
designed and managed to satisfy some customer requirements
Yield
usable output from input
