Note on Process Analysis |
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Operations problems are a part of every management
career. An important first step to managing an operation is analyzing
the operation's process. A process is any conversion activity where
inputs are transformed into outputs. In a factory, materials, labor,
and capital inputs are used to create finished products. In a retail
store, the output is a satisfied customer, while the inputs are the
customers, goods for sale, and an effective service delivery system.
In a law office or accounting firm, both the inputs and the outputs are
largely information: professionals convert raw data into information
for the specific needs of the client.
Process analysis involves understanding what the process does, how and
why it does it, how effectively it works, and how it might be
improved. It is a diagnostic process that involves technical analysis,
observation, and judgment, much like the diagnostic work of a
physician. Process analysis assesses the work or conversion activity
performed by some working unit. In general, four activities are
involved:
1. creating a process flow diagram,
2. analyzing the operating unit structure,
3. analyzing the work flow, and
4. evaluating the overall process.
THE PROCESS FLOW DIAGRAM
For a concrete example of how to apply process analysis, consider some
of the problems faced by a copy center in a School of Management, where
packets of cases and other materials are put together for selected
courses and sold to students. All items at the copy center are either
copied or purchased from an outside supplier.
The four components always specified in every process analysis are
tasks (or operations), flows, decision points, and storages (or
queues). Drawing a diagram of the process is a useful first step. In
a typical process flow diagram, tasks are depicted as circles, flows as
arrows, decision points as diamonds and storages as inverted triangles.
Figure 1 on the next page is a simplified process flow diagram that
illustrates the preparation process for course packets. The process
begins when professors select collections of cases and readings for
their courses and send them to the copy center. Packets waiting to be
processed are kept in storage.
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