1. Process-Flow Analysis Chapter 7

2. Outline • Systems Thinking • The Process View of Business • Flowchart Analysis • Materials-Flow Analysis • Information-Flow Analysis • Service Blue Printing • Using Process-Flow Analysis • Business Process Reengineering (BPR)

3. Systems Thinking • Definition of a “system” • Application of systems thinking to businesses • Role of “cross functional” teams in systems analysis

4. Flowchart Analysis • Targets process elements for change • Steps in process flow chart analysis

5. Targets process elements for change • Raw materials • Product (output) design • Job design • Processing steps used • Management control information • Equipment or tools • Suppliers

6. Steps in process flow chart analysis • Select a process • Form a team or individual as the project leader • Decide on the objectives of the analysis • Define customers and suppliers • Describe the existing transformation process • Develop improved process design • Gain management approval of the improved design • Implement the new process design

7. Materials-Flow Analysis • Objectives of MFA • Key concepts and tools: • Throughput time • Assembly drawing (Figure 7.2) • Assembly (Gozinto) chart (Figure 7.3) • Routing sheet (Figure 7.4) • Symbols used in Process Flow Chart (Figure 7.5) • Flow Processing Chart (Figure 7.6)

8. Assembly Drawing for a Tricycle (Figure 7.2)

9. Symbols for Flow-Process Chart Operation(a task or work activity) Inspection(an inspection of the product for 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)

10. Questions to Ask in FPA • Whatdoes thecustomer need?, operations are necessary? Can some operations be eliminated, combined, or simplified?…. • Whois performing the job? Can the operation be redesigned to use less skill or less labor? Can operations be combined to enrich jobs? …. • Whereis each operation conducted? Can layout be improved? …. • Whenis each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks? ….. • Howis the operation done? Can better methods, procedures, or equipment be used? ….

11. Information Flow Analysis • Types of information flow: • Information is the product of operation • Information is used for management control • Symbols used in information flow analysis (Figure 7.9)

12. Symbols for Information Processing Flow Chart Origin of record (used to identify an operation that involves the addition of significant data to a blank form) Subsequent writing (a step in which significant data is added to an existing record) Handling operations (any nonproductive step, such as sorting, stapling, or folding) Move (a step in which the record is transported from one person, department, or work place to another) Inspection (used when the step involves examination of the quality or clearness of a record) Delay, file, and destroy (identifies a point or time at which the record is inactive

13. Sociotechnical Approach to PFA

14. Business Process Reengineering (BPR) • BPR defined (Hammer and Champy) • BPR Philosophy • Principles of BPR

15. Service Blue Printing • Definition • Example of SBP (Figure 7.10) • SBP and “moments of truth” • Ask the same questions as in PFA (what, who, where, when, and how)

16. BPR Philosophy • Does the reengineering consultant see the glass as half full or half empty?Neither. • It’s the wrong size of glass!

17. Principles of BPR • Organize around outcomes • 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