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1、Chapter Six Process-Flow Analysis,Operations ManagementContemporary Concepts and Cases 5/e,Outline of Chapter 6,Process Thinking The Process View of Business Measuring Process Flows Measuring Process Flows at Pizza U.S.A. Process Flowcharting Process-Flow Analysis as Asking Questions Business Proces
2、s Reengineering (BPR),Process Thinking,Process Thinking: all work can be seen as a process Definition of a “system” Whole sum of parts Application of systems thinking to businesses Defining system boundaries Role of “cross-functional” teams in systems analysis Systems thinking requires cross-functio
3、nal teams to include all affected functions,Figure 6.1: Process View of Business,Measuring Process Flows,Littles Law Relates number of items in the system to arrival rate and length of time in the system Formula: I = T x R I = average number of things in the system T = average throughput time R = av
4、erage flow rate into the process Assumes system is in a steady state,Applications of Littles Law,Manufacturing Waiting lines Invoice processing Legal office transactions Accounts receivable processing Etc.,Measuring Process Flows,Capacity of a system = capacity of the most constraining resource This
5、 resource is called a bottleneck. The flow rate of a process is the minimum of: Supply Demand Capacity,Process Flowcharting,Process Flowcharting: creation of a visual diagram to describe a transformation process Also known as: Process mapping Flow-process charting Service blueprinting Value stream m
6、apping,Process Flowcharting,Purpose: to describe a process visually to find ways of improving the current process. Find repetitive operations Identify bottlenecks Describe directions and distances of flows (people, material and information) Reduce waste Required for certifications such as ISO9000,Pr
7、ocess Flow Analysis Might Change:,Raw materials Product (output) design Job design Processing steps used Management control information Equipment or tools Suppliers i.e. Anything but customers may be changed!,Steps in process flowchart analysisusing the systems approach,Select a process to study For
8、m a team to analyze & improve the system Specify the boundaries of the transformation process Identify and sequence the operational steps Identify the performance metrics Draw the flowchart,Symbols for Flow-Process Chart,Operation (a task or work activity),Inspection (an inspection of the product fo
9、r quantity or quality),Transportation (a movement of material from one point to another),Storage (an inventory or storage of materials awaiting the next operation),Delay (a delay in the sequence of operations),Questions to Ask in Process-Flow Analysis & Improvement,What does the customer need? What
10、operations are necessary? Can some operations be eliminated, combined, or simplified? Who is performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs? Where is each operation conducted? Can layout be improved? When is each operati
11、on performed? Is there excessive delay or storage? Are some operations creating bottlenecks? How is the operation done? Can better methods, procedures, or equipment be used?,Questions to Ask in Process-Flow Analysis & Improvement,Flow Balanced? Where is the bottleneck? Are all steps necessary? How j
12、umbled is the flow? Time How long to produce one unit? Can it be reduced? Cycle time? Excessive set-up time? Excessive waiting time? Quantity Theoretical production amount? How easy to change? How many units actually produced? Quality Historical defect rate? Which step contributes to defect rate? Wh
13、ere do errors occur? Cost Cost to produce one unit? What are cost buckets for one unit? Can some of the buckets be reduced or eliminated?,Business Process Reengineering (BPR),BPR defined (Hammer and Champy, 1993) BPR Philosophy Principles of BPR Success of BPR,BPR Defined,BPR is “the fundamental ret
14、hinking and radical redesign of business or organizational processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”,BPR Defined,This is in contrast to incremental change or continuous improvement of an existing process.
15、“If I were recreating this company today, given what I know and given current technology, what would it look like?”,BPR Philosophy,Does the reengineering consultant see the glass as half full or half empty? Neither. Its the wrong size of glass! Or, should it be a glass? or a liquid?,Principles of BP
16、R,Organize around outcomes, not tasks Have the people who do the work process their own information Put the decision point where work is performed, and build control into the process Eliminate unnecessary steps in the process,The Success of BPR,According to Hammer & Champy, 50-70% of organizations a
17、ttempting BPR do not achieve the results they expected. Why? Because they make one or more of the 17 common mistakes (see next 2 slides):,BPR Mistakes,Trying to fix a process instead of changing it Not focusing on business processes Focusing only on the process redesign Neglecting peoples values & b
18、eliefs Settling for minor results Quitting too early Constraining the scope of the problem & effort Letting corporate culture & mgmt attitudes get in the way Trying to reengineer from the bottom up,BPR Mistakes (cont.),Assigning a leader who doesnt understand BPR Skimping on the resources Not making BPR a top corporate priority Trying to do too much at once & dissipating resources Concentrating only on design & not implementation Trying to keep everyone happy Pulling back if people resist Dragging out the effort & taking too long Source:
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