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Process Fundamentals

A process is a collection of tasks connected by a flow of goods and information that transforms inputs into outputs. The key elements of a process are its cycle time, capacity, utilization, bottleneck, and balance/imbalance. An example process involving two tasks, A and B, is provided. Task A has a cycle time of 5 minutes and 100% utilization, making it the bottleneck that determines the overall process cycle time of 5 minutes and capacity of 0.2 units/minute. The process is imbalanced as task B has a faster cycle time of 2 minutes but is only utilized 40% of the time.

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46 views6 pages

Process Fundamentals

A process is a collection of tasks connected by a flow of goods and information that transforms inputs into outputs. The key elements of a process are its cycle time, capacity, utilization, bottleneck, and balance/imbalance. An example process involving two tasks, A and B, is provided. Task A has a cycle time of 5 minutes and 100% utilization, making it the bottleneck that determines the overall process cycle time of 5 minutes and capacity of 0.2 units/minute. The process is imbalanced as task B has a faster cycle time of 2 minutes but is only utilized 40% of the time.

Uploaded by

adithi.manjunath1
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Process Fundamentals

Thursday, 1 February 2024 11:28 AM

Ø What is a process?
- A process is a collection of tasks connected by a flow of goods and information that
transforms inputs into outputs.

Ø Elements of a process:

Ø Example: 1
Ø Cycle Time: Time interval between finished goods (or) Time between completion of
successive units.

UNIT Enters A Exits A Enters B Exists B


1 0 5 5 7
2 5 10 10 12
3 10 15 15 17
- Cycle Time of A = 5 mins
- Cycle Time of B = 2 mins
- Cycle Time of the entire process = 12-7 = 5 mins
- Gantt Chart:
- X axis: Time
- Y axis: Resources (2 operators)

Ø Capacity: Outputs per unit time


= 1/ Cycle Time
The capacity can be calculated for every station in a business process. It is always m /
processing time with m being the number of resources (e.g. workers) being devoted to
station. If, for example, one worker needs 40 seconds to put together a sandwich, the
capacity of this station is 1/40 per second or 1,5 sandwiches per minute. If there are tw
workers on the same station, the capacity increases to 2/40 per second or 3 sandwiche
per minute.
Capacity A= 1/5 = 0.2 unit/min
Capacity B = 1/2 = 0.5 unit/min
Capacity of process = 1/5 = 0.2 unit/min
o the

wo
es
capacity of this station is 1/40 per second or 1,5 sandwiches per minute. If there are tw
workers on the same station, the capacity increases to 2/40 per second or 3 sandwiche
per minute.
Capacity A= 1/5 = 0.2 unit/min
Capacity B = 1/2 = 0.5 unit/min
Capacity of process = 1/5 = 0.2 unit/min

** Might need to capture who is the slower operator in the process; as it affects the e
process; Thus measure Utilisation

Ø Utilisation:
= Time Required (Used)/ Time Available

A: Utilises all the time; doesn’t wait for anything = 100%


B: For every 5 mins; only 2 mins operator B is utilising the time; 3 mins doesn’t use it =
* 100 = 40 %

= Capacity Required(Used) / Capacity Available


B: 1/5 / 1/2 = 40%
A: 100%

- So who is the slowest operator; the person with the highest utilisation; A
- The slower operatory decides the cycle time and capacity (A and entire process cycle t
and capacity is same; that’s why need utilisation)
- The slowest operator is the Bottleneck.

Ø Bottleneck:
- Resource or Task that limits the flow with the highest utilisation
- A = 100%; Capacity of process = Capacity of Bottleneck = 0.2 units/min
- Cycle time of process = Cycle time of Bottleneck = 0.5 units/min
- True for all processes
- So if you identify the bottleneck; can learn the performance of the process.

Ø Balance/ Imbalance:
- Balanced Process - If all tasks have equal capacity
- This case - Imbalance
wo
es

entire

= 2/5

time

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