is any part of an organization that takes inputs and transforms them into outputs
Cycle time
is the average successive time between completions of successive units
utilization
ratio of the time that a resource is actually activated relative to the time that it is available for use
process flowcharting
is the use of a diagram to present the major elements of a process
rectangle
taks or operations
diamond
decision points
triangle
storage areas or queues
arrows
flow sof materials or customers
buffer
a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
blocking (can occur with no buffering)
occurs when the activities in a stage must stop because there is no place to deposit the item just completed- employee has to stop working and hold onto the unit
starving (can occur with no buffering)
occurs when activities in a stage must stop because there is no work; employee stops working bc no work is coming their way
bottleneck
when the limited capacity of a process causes work to pile up or become unevenly distribute in the flow of a process
pacing
refers to the fixed timing of the movement of items through the process (assembly lines)
make-to-order
only activated in response to an actual order; both work-in-process and finished goods inventory kept to a min
make-to-stock
process activated to meet expected or forecast demand; customer orders are served from target stocking level
process throughput time reduction
perform activities in parallel, change the sequence of activities, reduce interruptions
hybrid
combination of make-to-stock and make-to-order
operation time
the sum of the setup time and the run time for a batch of parts that are run
run time
time required to produce a batch of parts
set up time
the time required to prepare to make a particular item
throughput time
average time that it takes a unit to move through the entire process (lead time)
productivity
ratio of output to input
efficiency
ratio of the actual output of a process relative to some standard
throughput rate
the output rate the process is expected to produce for a given period of time
process velocity or throughput ratio
ratio of the total throughput time to the time value is being added
value added time
the time in which useful work is actually being done on the unit
little's law
throughput time is = to work-in-process / throughput rate