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Rocess Management AND Improvement Through Operations: Dr. Jitendra Sharma Professor - Operations IMT - Nagpur
Rocess Management AND Improvement Through Operations: Dr. Jitendra Sharma Professor - Operations IMT - Nagpur
IMPROVEMENT THROUGH
OPERATIONS
SESSIONS OBJECTIVES
To know what is actually a process
Categorize activities in the process
What is value add; non value add & required non value add?
What are wastes and how to identify them
What are process parameters
How to read a process
How to make changes in process
What is process analysis
What are the ways and means we can do process analysis?
PROCESS PARAMETERS
Process: Is any part of an organization that takes inputs and
transforms them into outputs
Capacity: Maximum capability to produce; is affected by the
mix of product or services, the choice of technology, the size
of a facility, and the resource allocated
PROCESS SKILLS
So we can say that everybody is concerned with building
capabilities and they do it because everybody is
concerned with building processes
Managers should, invariably, posses an important skill
which traditionally they are very bad at internally
managing process that delivers goods and services
efficiently and effectively
For that you need to understand your processes as they
inside out you should know about loading, capacity,
bottlenecks, flexibility, service quality, etc.
There are certain fundamental and basic laws of behavior
of a processes
adding activities
Non value adding activities
Overproduction
Unnecessary inventory
Transport
Processes
Activity resulting in rejects/scrap
Waiting
Unnecessary motion
Required
Required Non value adding activities are the ones which cannot
just be avoided
An activity which is important to run the system but doesnt add
value in the eyes of customer, and he is/is not willing to pay for
it as well
With value adding activities the work is work and there is not a
lot of opportunity to change the content but still efforts are
always on
With non value adding activity, you have the opportunity to make
the activity go away by re-designing your processes and
procedures
With required non value adding activity, you have the opportunity
to greatly reduce the cost through process redesign.
Here you still need to get the activity done, but how you do it is
under your control
PROCESS PARAMETERS
Cycle Time: Is the average successive time between
completions of successive units
Setup time: is the time required to prepare a machine to
make a particular item
Run time: is the time required to produce a batch of parts
Operation time: is sum of the setup time and run time for
a batch of parts that run on a machine
Queue time and Waiting time
Pacing: Refers to the fixed timing of the movement of
items through the process
Bottleneck: Capacity or any other constraint/limiting
factor
PROCESS PARAMETERS
Blocking
Occurs when the activities in a stage must stop because there
is no place to deposit the item just completed
If there is no room for an employee to place a unit of work
down, the employee will hold on to it not able to continue
working on the next unit
Starving
Occurs when the activities in a stage must stop because there
is no work
If an employee is waiting at a work station and no work is
coming to the employee to process, the employee will remain
idle until the next unit of work comes
Throughput rate =
Productivity = Output
Input
1
.
Cycle time
PROCESS IMPROVEMENTS
To manage something effectively and then to improve it, one
must first understand it.
As in all walks of life, the ultimate test of an idea is the test of
time
And the proof of the pudding is in the eating
Short term success is no basis on which you can premise and
base your judgment
In order to improve anything, first deconstruct it and do the
reductionist approach break it down in as many pieces as
you can and analyze it minutely for lacunae and improvements
The
It
Decision Points
Examples: Giving an
admission ticket to a
customer, installing a
engine in a car, etc.
Storage areas or
queues
Flows of materials or
customers
Examples: Customers
moving to a seat, mechanic
getting a tool, etc.
Operations
Inspection
Transportation
Delay
Storage
Thanks