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Business Processes. BA 339 Mellie Pullman. Littlefield Login. Buy your code this week! Log onto: http://lt.responsive.net/lt/pdx/start.html Enter “dollars” It will ask for your team name & password must consist only of numbers and lower case letters must not contain spaces or punctuation.

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business processes

Business Processes

BA 339

Mellie Pullman

littlefield login
Littlefield Login
  • Buy your code this week!
  • Log onto: http://lt.responsive.net/lt/pdx/start.html
  • Enter “dollars”
  • It will ask for your team name & password
    • must consist only of numbers and lower case letters
    • must not contain spaces or punctuation
after game has started
After Game has started
  • Oct. 8 at 5 PM, you will then logon with:
  • http://lt.responsive.net/lt/pdx/entry.html

We will look at the running factories on October 10 in class but you can make changes as soon as it starts on October 8.

process analysis terms
Process Analysis Terms
  • Process: Is any part of an organization that takes inputs and transforms them into outputs.
  • Cycle Time: Is the average time needed to complete a business process.
  • Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use.
process throughput rate or flow rate r
Process Throughput Rateor Flow Rate R
  • Number of jobs (or customers) that flow through the system perunit of time.
    • Cakes per hour
    • Kitchen orders per shift
    • Drive-in customers per day
  • Process Throughput rate R = 1 .

Takt Time

bottleneck
Bottleneck
  • Slowest activity or operation in system.
  • Sets the pace for throughput rate of system.
process types in order of decreasing volume
Process Types(in order of decreasing volume)
  • Continuous Flow
  • Production Line
  • Batch (High Volume)
  • Batch (Low Volume)
  • Job Shop
  • Project
continuous flow
Continuous Flow
  • Large production volumes
  • High level of automation
  • Basic material passed along, converted as it moves
  • Usually very high fixed costs, inflexible
production line
Production Line

High-volume production of standard products or “design window”

job shop
Job Shop
  • Low volume, one-of-a-kind products
  • Job shops sell their capability
  • Highly flexible equipment, skilled workers
  • Equipment arranged by function
batch i
Batch I
  • Somewhere in between job shop and line processes
  • Moderate volumes, multiple products
  • Production occurs in “batches”
batch ii
Batch II

Layout is a cross between that found in a line and that found in a job shop:

Group Technology

project
Project
  • Used when a product is:
    • one-of-a-kind
    • too large to be moved
  • Resources moved to where needed
  • Equipment, people, etc. are highly flexible
  • Finite duration, often with deadline
mixing together the process types
Mixing Together the Process Types ...

Spindles

ASSEMBLY

LINEfor

putting together

final product

Arms and

Legs

BATCH for

fabricating

parts ...

Seats

product process matrix
Product – Process Matrix

Very Poor Fit

Very Poor Fit

what is customization
What is “Customization”?

An operations-centric view:

customization models
Customization Models

Definitions:

ETO – engineer to order

MTO – make to order

ATO – assemble-to-order

MTS – make to stock

Upstream: before the customization point, “off-line” activities

Downstream: after the customization point, “on-line” activities

make to stock
Make-to-Stock
  • Planning Issues
    • When, how much, and how to replenish stock at location
  • Success
    • Balancing level of inventory against level of service

Other examples?

assemble to order
Assemble-to-Order
  • Success comes from:
    • Flexible Engineering design
    • Modularity
ato planning issues
ATO Planning Issues
  • Options configurations (Smart Car)
      • 8 different colors
      • 2 different trims
      • 2 different seats
  • Possible combinations?
  • Less finished good inventory & waste than MTS
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