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Business Processes. BA 339 Mellie Pullman. Littlefield Login. Buy your code this week! Log onto: 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:
  • 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:

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

  • 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

  • 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 ...




putting together

final product

Arms and




parts ...


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


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
  • 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
  • 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