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WhatisaProcessaPROCESSisanyactivityorgroupofactivitiesthattakesoneormoreinputs,transformsandaddsvaluetothem,andprovidesoneormoreoutputsforitscustomers.InputsOutputsFeedbackTransformationProcessAndOperationsWhatisaProcessaPROCESSisTheFunnelandProcess

It’sallaboutthru-putTheFunnelandProcess

It’salTheBigPicture

KingSoopersBakery7000loaves/hr1000pastries/hr50cakes/hrBreadlinePastrylineCakelineHigh LowTheBigPicture

KingSoopersBTheBigPicture

KingSoopersBakeryTheBigPicture

KingSoopersBVerticalIntegrationRawmaterials(eggs,flour,sugar)KingSoopersCustomers(grocerystores)BackwardintegrationForwardintegrationIn-houseprocessesFigure3.3VerticalIntegrationRawmateriProcessMatrix ProjectJobShopBatchLineContinuousCapacityCapitalinvestmentFlexibilityWorkforceCapacityVolumeAutomationProcessMatrix ProjeVolumeandProcessDecisionsforManufacturingHighLowVolumeFigure3.5ProjectprocessSelectinglocationfornewplantinEuropeInstallingERPforamanufacturingfirm’sbusinessprocessesJobprocessMachiningprecisionmetaltubesInternalconsultingteamatmanufacturingfirmBatchprocessForgingprocesstomakefittingsforpressurevesselsaccessProducingabatchoftextbooksatR.R.Donnelley’splantLineprocessAutoassemblyKingSoopersbreadlineContinuousprocessOilrefiningprocessBorden’spastamakingprocessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforManufacturingHighLowVolumeLessverticalintegrationMoreresourceflexibilityMorecustomerinvolvementLesscapitalintensity/

automationMoreverticalintegrationLessresourceflexibilityLesscustomerinvolvementMorecapitalintensity/

automationLowvolume,make-to-orderprocessHighvolume,make-to-stockprocessFigure3.5ProjectprocessSelectinglocationfornewplantinEuropeInstallingERPforamanufacturingfirm’sbusinessprocessesJobprocessMachiningprecisionmetaltubesInternalconsultingteamatmanufacturingfirmBatchprocessForgingprocesstomakefittingsforpressurevesselsaccessProducingabatchoftextbooksatR.R.Donnelley’splantLineprocessAutoassemblyKingSoopersbreadlineContinuousprocessOilrefiningprocessBorden’spastamakingprocessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforServicesHighLowVolumeFigure3.6ProjectprocessRealestateprocessforleasingandconstructingfacilitiesforlargeinsurancecompanyStudentteam’sfieldprojectJobprocessCustomerserviceprocessatfinancialservicesfirmGeneralmedicalpracticeBatchprocessOrderfulfillmentprocessofimporter/distributorPlacingpurchaseordersatpublicrelationsagencyLineprocessCafeterialineTellerlineatbankContinuousprocessPowergenerationplantProvidingtelephonelineaccessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforServicesProcessdesignchoicesLessverticalintegrationMoreresourceflexibilityMorecustomerinvolvementLesscapitalintensity/

automationMoreverticalintegrationLessresourceflexibilityLesscustomerinvolvementMorecapitalintensity/

automationLowvolume,customized-serviceprocessHighvolume,standardized-serviceprocessHighLowVolumeFigure3.6ProjectprocessRealestateprocessforleasingandconstructingfacilitiesforlargeinsurancecompanyStudentteam’sfieldprojectJobprocessCustomerserviceprocessatfinancialservicesfirmGeneralmedicalpracticeBatchprocessOrderfulfillmentprocessofimporter/distributorPlacingpurchaseordersatpublicrelationsagencyLineprocessCafeterialineTellerlineatbankContinuousprocessPowergenerationplantProvidingtelephonelineaccessVolumeandProcessDecisionsfCostsandVolumeUnitsperyear(Q)Process2:Special-purposeequipmentProcess1:General-purposeequipmentBreak-evenquantityF2F1Totalcost(dollars)Figure3.4CostsandVolumeUnitsperyearThreeTechniquesforEvaluatingProcessesFlowDiagramsProcessChartsSimulationModelsThreeTechniquesforEvaluatinFlowDiagrams*=Pointscriticaltothesuccessoftheservice?=PointsatwhichfailureismostoftenexperiencedCustomerdropsoffcarMechanicmakesdiagnosis*Discussneededworkwithcustomer*CustomerdepartswithcarCollectpaymentNotifycustomerCheckpartsavailability?OrderpartsRepaircompleteFigure3.7RepairnotauthorizedPartsavailableServicevisibletocustomerRepairauthorizedServicenotvisibletocustomerPerformwork?Inspect/testandrepairPerformcorrectedworkCorrectiveworknecessaryPartsnotavailableFlowDiagrams*=PointscriticATourofMicrosoftVisioATourofMicrosoftVisioProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: LeavehospitalStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)TransportOperationInspectStoreDelayStepdescriptionInsertStepAppendStepRemoveStepIncludesTimeAndCostInformation…unlikeFlowDiagramsProcessChartsFigure3.8ProcesProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: Leavehospital 1 Enteremergencyroom,approachpatientwindow 2 Sitdownandfilloutpatienthistory 3 NurseescortspatienttoERtriageroom 4 Nurseinspectsinjury 5 Returntowaitingroom 6 Waitforavailablebed 7 GotoERbed 8 Waitfordoctor 9 Doctorinspectsinjuryandquestionspatient 10 Nursetakespatienttoradiology 11 Technicianx-rayspatient 12 ReturntobedinER 13 Waitfordoctortoreturn 14 Doctorprovidesdiagnosisandadvice 15 Returntoemergencyentrancearea 16 Checkout 17 Walktopharmacy 18 Pickupprescription 19 LeavethebuildingStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)TransportOperationInspectStoreDelayStepdescriptionInsertStepAppendStepRemoveStepProcessChartsFigure3.8ProcesProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: Leavehospital 1 0.50 15 X Enteremergencyroom,approachpatientwindow 2 10.0 - X Sitdownandfilloutpatienthistory 3 0.75 40 X NurseescortspatienttoERtriageroom 4 3.00 - X Nurseinspectsinjury 5 0.75 40 X Returntowaitingroom 6 1.00 - X Waitforavailablebed 7 1.00 60 X GotoERbed 8 4.00 - X Waitfordoctor 9 5.00 - X Doctorinspectsinjuryandquestionspatient 10 2.00 200 X Nursetakespatienttoradiology 11 3.00 - X Technicianx-rayspatient 12 2.00 200 X ReturntobedinER 13 3.00 - X Waitfordoctortoreturn 14 2.00 - X Doctorprovidesdiagnosisandadvice 15 1.00 60 X Returntoemergencyentrancearea 16 4.00 - X Checkout 17 2.00 180 X Walktopharmacy 18 4.00 - X Pickupprescription 19 1.00 20 X LeavethebuildingStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)TransportOperationInspectStoreDelayStepdescriptionInsertStepAppendStepRemoveStepProcessChartsFigure3.8ProcesProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: Leavehospital 1 0.50 15 X Enteremergencyroom,approachpatientwindow 2 10.0 - X Sitdownandfilloutpatienthistory 3 0.75 40 X NurseescortspatienttoERtriageroom 4 3.00 - X Nurseinspectsinjury 5 0.75 40 X Returntowaitingroom 6 1.00 - X Waitforavailablebed 7 1.00 60 X GotoERbed 8 4.00 - X Waitfordoctor 9 5.00 - X Doctorinspectsinjuryandquestionspatient 10 2.00 200 X Nursetakespatienttoradiology 11 3.00 - X Technicianx-rayspatient 12 2.00 200 X ReturntobedinER 13 3.00 - X Waitfordoctortoreturn 14 2.00 - X Doctorprovidesdiagnosisandadvice 15 1.00 60 X Returntoemergencyentrancearea 16 4.00 - X Checkout 17 2.00 180 X Walktopharmacy 18 4.00 - X Pickupprescription 19 1.00 20 X LeavethebuildingStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)Transport911815Operation523—Inspect28—Store———Delay38—StepdescriptionInsertStepAppendStepRemoveStepProcessChartsFigure3.8ProcesWhatisaProcessaPROCESSisanyactivityorgroupofactivitiesthattakesoneormoreinputs,transformsandaddsvaluetothem,andprovidesoneormoreoutputsforitscustomers.InputsOutputsFeedbackTransformationProcessAndOperationsWhatisaProcessaPROCESSisTheFunnelandProcess

It’sallaboutthru-putTheFunnelandProcess

It’salTheBigPicture

KingSoopersBakery7000loaves/hr1000pastries/hr50cakes/hrBreadlinePastrylineCakelineHigh LowTheBigPicture

KingSoopersBTheBigPicture

KingSoopersBakeryTheBigPicture

KingSoopersBVerticalIntegrationRawmaterials(eggs,flour,sugar)KingSoopersCustomers(grocerystores)BackwardintegrationForwardintegrationIn-houseprocessesFigure3.3VerticalIntegrationRawmateriProcessMatrix ProjectJobShopBatchLineContinuousCapacityCapitalinvestmentFlexibilityWorkforceCapacityVolumeAutomationProcessMatrix ProjeVolumeandProcessDecisionsforManufacturingHighLowVolumeFigure3.5ProjectprocessSelectinglocationfornewplantinEuropeInstallingERPforamanufacturingfirm’sbusinessprocessesJobprocessMachiningprecisionmetaltubesInternalconsultingteamatmanufacturingfirmBatchprocessForgingprocesstomakefittingsforpressurevesselsaccessProducingabatchoftextbooksatR.R.Donnelley’splantLineprocessAutoassemblyKingSoopersbreadlineContinuousprocessOilrefiningprocessBorden’spastamakingprocessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforManufacturingHighLowVolumeLessverticalintegrationMoreresourceflexibilityMorecustomerinvolvementLesscapitalintensity/

automationMoreverticalintegrationLessresourceflexibilityLesscustomerinvolvementMorecapitalintensity/

automationLowvolume,make-to-orderprocessHighvolume,make-to-stockprocessFigure3.5ProjectprocessSelectinglocationfornewplantinEuropeInstallingERPforamanufacturingfirm’sbusinessprocessesJobprocessMachiningprecisionmetaltubesInternalconsultingteamatmanufacturingfirmBatchprocessForgingprocesstomakefittingsforpressurevesselsaccessProducingabatchoftextbooksatR.R.Donnelley’splantLineprocessAutoassemblyKingSoopersbreadlineContinuousprocessOilrefiningprocessBorden’spastamakingprocessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforServicesHighLowVolumeFigure3.6ProjectprocessRealestateprocessforleasingandconstructingfacilitiesforlargeinsurancecompanyStudentteam’sfieldprojectJobprocessCustomerserviceprocessatfinancialservicesfirmGeneralmedicalpracticeBatchprocessOrderfulfillmentprocessofimporter/distributorPlacingpurchaseordersatpublicrelationsagencyLineprocessCafeterialineTellerlineatbankContinuousprocessPowergenerationplantProvidingtelephonelineaccessProcessdesignchoicesVolumeandProcessDecisionsfVolumeandProcessDecisionsforServicesProcessdesignchoicesLessverticalintegrationMoreresourceflexibilityMorecustomerinvolvementLesscapitalintensity/

automationMoreverticalintegrationLessresourceflexibilityLesscustomerinvolvementMorecapitalintensity/

automationLowvolume,customized-serviceprocessHighvolume,standardized-serviceprocessHighLowVolumeFigure3.6ProjectprocessRealestateprocessforleasingandconstructingfacilitiesforlargeinsurancecompanyStudentteam’sfieldprojectJobprocessCustomerserviceprocessatfinancialservicesfirmGeneralmedicalpracticeBatchprocessOrderfulfillmentprocessofimporter/distributorPlacingpurchaseordersatpublicrelationsagencyLineprocessCafeterialineTellerlineatbankContinuousprocessPowergenerationplantProvidingtelephonelineaccessVolumeandProcessDecisionsfCostsandVolumeUnitsperyear(Q)Process2:Special-purposeequipmentProcess1:General-purposeequipmentBreak-evenquantityF2F1Totalcost(dollars)Figure3.4CostsandVolumeUnitsperyearThreeTechniquesforEvaluatingProcessesFlowDiagramsProcessChartsSimulationModelsThreeTechniquesforEvaluatinFlowDiagrams*=Pointscriticaltothesuccessoftheservice?=PointsatwhichfailureismostoftenexperiencedCustomerdropsoffcarMechanicmakesdiagnosis*Discussneededworkwithcustomer*CustomerdepartswithcarCollectpaymentNotifycustomerCheckpartsavailability?OrderpartsRepaircompleteFigure3.7RepairnotauthorizedPartsavailableServicevisibletocustomerRepairauthorizedServicenotvisibletocustomerPerformwork?Inspect/testandrepairPerformcorrectedworkCorrectiveworknecessaryPartsnotavailableFlowDiagrams*=PointscriticATourofMicrosoftVisioATourofMicrosoftVisioProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: LeavehospitalStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)TransportOperationInspectStoreDelayStepdescriptionInsertStepAppendStepRemoveStepIncludesTimeAndCostInformation…unlikeFlowDiagramsProcessChartsFigure3.8ProcesProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: Leavehospital 1 Enteremergencyroom,approachpatientwindow 2 Sitdownandfilloutpatienthistory 3 NurseescortspatienttoERtriageroom 4 Nurseinspectsinjury 5 Returntowaitingroom 6 Waitforavailablebed 7 GotoERbed 8 Waitfordoctor 9 Doctorinspectsinjuryandquestionspatient 10 Nursetakespatienttoradiology 11 Technicianx-rayspatient 12 ReturntobedinER 13 Waitfordoctortoreturn 14 Doctorprovidesdiagnosisandadvice 15 Returntoemergencyentrancearea 16 Checkout 17 Walktopharmacy 18 Pickupprescription 19 LeavethebuildingStepno.Time(min)Distance(ft)SummaryNumberofstepsActivityTime(min)Distance(ft)TransportOperationInspectStoreDelayStepdescriptionInsertStepAppendStepRemoveStepProcessChartsFigure3.8ProcesProcessChartsFigure3.8Process: EmergencyroomadmissionSubject: AnkleinjurypatientBeginning: EnteremergencyroomEnding: Leavehospital 1 0.50 15 X Enteremergencyroom,approachpatientwindow 2 10.0 - X Sitdownandfilloutpatienthistory 3 0.75 40 X NurseescortspatienttoERtriageroom 4 3.00 - X Nurseinspectsinjury 5 0.75 40 X Returntowaitingroom 6 1.00 - X Waitforavailablebed 7 1.00 60 X GotoERbed 8 4.00 - X Waitfordoctor 9 5.00 - X Doctorinspectsinjuryandquestionspatient 10 2.00 200 X Nursetakespatienttoradiology 11 3.00 - X Technicianx-rayspatient 12 2.00 200 X ReturntobedinER 13 3.00 - X Waitfordoct

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