Unit III

Unit III: Process Design (Part B)

(Chapters 6 & 7)

After completing this unit, the student should be able to:

1. Define “lean systems.”
2. Describe the philosophy of “lean.”
3. Identify the elements of a lean system.
4. Identify the purpose of “takt time.”
5. Describe the Kanban system.
6. Discuss the aspects of lean systems.
7. Differentiate between lean production and lean thinking.
8. Define “valuestream.”
9. Describe process thinking.
10. Explain the process view of business.
11. Discuss measuring process flows.
12. Develop a flowchart analysis.
13. Explain materials-flow analysis.
14. Explain information-flow analysis.
15. Describe service blueprinting
16. Discuss business process reengineering.
17. Identify the four key principles of BPR.

Chapter Six considers the issue of technology choice on a cross-functional basis.

Technology is a set of processes tools, methods, and equipment used to produce goods or
services. The definition is broader than merely equipment selection; it includes the choice of
processes, methods, and tools. Computer-integrated manufacturing is achieved through a
common database that supports applications in computer-aided design, computer-aided
manufacturing, robotics, and manufacturing planning and control systems. Office automation
is achieved through computerization and integration of information processing and
communications between offices. The automation of services also offers great potential. As
services are viewed in technical rather than humanistic terms automation and standardization
become possible. This can result not only in lower costs but also in more uniform quality and
faster service. Nevertheless, service should be automated only if it meets a real customer
need. Enterprise resource planning systems integrate not only operations information but
information from marketing, finance/accounting, and human resources through a common
database. E-business is rapidly changing the economy by connecting suppliers, companies,
and customers via the Internet. There are four types of e-businesses: e-marketplace
companies, e-service providers, e-retailers and wholesalers, and e-producers. Technology
choice should be based on a technology strategy that seeks to help obtain a competitive
advantage through minimizing cost or product differentiation. The required return on
investment sets a minimum acceptable level that the technology strategy should meet or
exceed. The choice of technology automatically determines the jobs and thus has a social
and human impact. As a result, a socio technical approach should be used to jointly choose
the jobs and technology at the same time. The choice of technology should consider the
effects on customers, employees, finance, and the environment. A cross-functional strategy
is needed to ensure that technological choices are integrated over time and help the firm
achieve a competitive advantage.
Chapter Seven emphasizes process-flow analysis by building upon the ideas of systems,
measurement, flowcharting, and business process reengineering. A prerequisite to process-
flow analysis is a definition of the system to be analyzed. Systems definition requires
isolation of the system of interest from its environment by defining a boundary, customers,
outputs, inputs, suppliers, and process flows. The process view leads to the idea that a
business is a set of horizontal processes that are interconnected with the objective of
meeting customer needs. Measurement is essential to process improvement. Some key
measurements of a process are throughout time, flow rate, inventory, and capacity. The
bottleneck resource determines the capacity for the entire process. Materials, information,
and service flows can be analyzed by flowcharts and answering the questions: What is
done? Who does it and where? When and how is it done? The result of the analysis may
lead to changes in output, raw materials, tools, equipment, jobs, methods, and information.
Information flows can be analyzed either, as the product itself or as management information
used to plan and control production of the product or service. Service blueprints are used to
describe and analyze the service delivery system. Business process reengineering is used
for radical redesign of processes.

Chapter 6: Choice of Technology
Chapter 7: Process-Flow Analysis
 

1. philosophy of lean (page 97)

2. elements of lean (page 98)
3. continuous improvement (page 98)
4. lean system (page 101)
5. master schedule (page 102)
6. Takt time (page 102)
7. Kanban (page 103)
8. setup time (page 107)
9. layout (page 107)
10. lean thinking (page 111)
11. process thinking (page 122)
12. process view (page 123)
13. Little's Law (page 124)
14. process flow measurement (page 124)
15. bottleneck (page 125)
16. flow chart analysis (page 127
17. flow-process chart (page 129)
18. information flows (page 131)
19. service blueprinting (page 132)
 20. business process reengineering (page 134)

Instructions: The questions listed below are from Section Exam I. These questions are
based on the materials covered in this Unit. You should prepare your answer to these
questions while studying this unit. Do not submit your answers to CSU at this time.
You will submit the Section Exam once all exam questions have been answered.
Your answer to each essay question should contain a minimum 200-300 word response. You
may use additional Internet references and professional journals to defend your response,
and reference these sources within your answer. Refer to the APA style manual for citation
guidelines.
Section Exam I
Question V: What are the five essential elements of lean thinking? In your own words,
provide a road map for implementing lean thinking in a manufacturing or service operations
of your choice.
Question VI: Hollywood Video is a small video stored located in Minneapolis. It is open 24
hours a day and experiences customers arriving throughout the day. The Video store
manager was interested in determining the traffic in his store. This made him conduct a study
regarding the arrival process of his customers. He found that the customers arrive uniformly
at the rate of 10 customers per hour. The Video Store has a single clerical staff to process
the customer request (checkout a video cassette). The clerical staff takes an average of 5
minutes to checkout a customer. a. If we assume that every incoming customer rents at least
one video, what is the average number of customers in the video store? b. For the same
assumption, determine the utilization of the clerical staff.

Section Exam I is located after Unit Four. Remember; do not submit your answers until
all essay question for the Section Exam are completed. All Eight essay questions will
be submitted in one Mircrosoft word document. 
You are now ready to take the Unit Assessment. In order to prepare for the
assessment, review the chapters in this Unit. If you have any questions regarding any
of the concepts presented within these chapters, contact your professor for
assistance.