PROCESS FUNDAMENTALS
Rajiv Misra
PROCESS FUNDAMENTALS
Rajiv Misra
PROCESS FUNDAMENTALS
A Bad process will beat a good person
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PROCESS CENTRICITY: THE TRANISTION
•
•
•
•
IS (BIS)
Process (ISO 9000)
Business process
Inter-organization Processes
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THE THREE GURUS
DEMING HAMMER OHNO
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THE PHILOSOPHY PDCA
Deming
P
D
A
C
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THE PHILOSOPHY PDCA
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THE PHILOSOPHY PDCA
W. Edwards Deming
ROTATE THE PDCA
P
D
A
C
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PDCA
W. Edwards Deming
IF YOU DO NOT ROTATE THE PDCA
P
D
A
C
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PLANNING A PROCESS
PDCA
W. Edwards Deming
IF YOU DO NOT ROTATE THE PDCA
P
D
A
C
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PLANNING A PROCESS
PDSA
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WHAT IS A PROCESS
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WHAT IS A PROCESS
Measures
Periodicity
Outputs
Inputs
Feedback
Process Owner
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WHAT IS A SYSTEMATIC PROCESS
Measures
Periodicity
Periodicity
Inputs
A
Measures
A
Outputs
Feedback
Feedback
Original Outputs
Customers, Stake holders
Suppliers
Original Inputs
Process Owner
Process Owner
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Process Measures
Level 1 Strategic Process
End-of-Process
Measures (result)
Level 2 Tactical Process
Level 3 Operational
Process
In-Process Measures
(still time to change the result)
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CATARACT OPERATION
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GURU OF
PROCESSES
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GURU OF
PROCESSES
Michael
Hammer
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GURU OF
PROCESSES
Michael
Hammer
Dr Sheer
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PROCESS DIAGRAMS
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PROCESS FUNDAMENTALS
Bread Making
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PROCESS FUNDAMENTALS
Bread Making
Flour, Yeast and Water are converted to Bread.
Process:
Mixing
Proofing (letting bread to rise)
Baking
Packaging
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PROCESS FUNDAMENTALS
Bread Making
There are two mixers,2 proofers and two Ovens so
organized that the ingredients mixed on the first
mixer are automatically fed to the first proofer and
then sent to the first oven.
All the bread loaves are packaged in the same
packaging line (only one).
The company makes only one type of Bread.
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PROCESS FUNDAMENTALS
Bread Making
Draw it diagrammatically
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PROCESS FUNDAMENTALS
Bread Making
Draw it diagrammatically, Using the following
Symbols
Symbols
Meaning
Task or Activity
Flow
Storage of Goods (WIP/FG)
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PROCESS FUNDAMENTALS
Bread Making
MIX
PROOF
BAKE
R
M
WI
P
MIX
PROOF
PACK
BAKE
FG
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PROCESS FUNDAMENTALS
Bread Making
MIX
PROOF
BAKE
R
M
WI
P
MIX
PROOF
PACK
BAKE
FG
Parallel Lines. Each line is in Series
Why WIP in front of Packing
How do we determine Capacity
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PROCESS FUNDAMENTALS
Bread Making II
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PROCESS FUNDAMENTALS
Bread Making II
If Mixers, proofers and ovens were not set up as
distinct lines
Draw it diagrammatically
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PROCESS FUNDAMENTALS
Bread Making II
MIX
PROOF
BAKE
R
M
WI
P
MIX
PROOF
PACK
BAKE
FG
Individual Tasks operate in Parallel
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COMPARE
Bread Making I and II
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COMPARE
Bread Making I and II
MIX
PROOF
BAKE
R
M
WI
P
MIX
MIX
PROOF
PROOF
BAKE
FG
BAKE
R
M
WI
P
MIX
PROOF
PACK
PACK
BAKE
FG
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PROCESS FUNDAMENTALS
Bread Making
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COMPARE
Bread Making I and II
Focused
Sarda Farms
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FLEXIBILITY
THE FOUR PERFORMANCE DIMENSIONS
1
2
3
4
Cost Leadership
Superior Quality
Time Responsiveness
Flexibility
Tradeoffs need to be made
Flexibility is not a competitive dimension
but a safeguard for future
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FLEXIBILITY
FLEXIBILITY
FLEXIBILITY
FLEXIBILITY: A STARTING DEFINITION
Flexibility is the ability to change or react
with little penalty in
time, effort, cost or performance
FLEXIBILITY: AN ELUSIVE CONCEPT
Compare with Quality
1.
2.
3.
4.
Laudatory:
No will say we do not want it
Multi-dimensional Many types of quality
Vagueness to be removed
Different techniques improve different types of
flexibility (SPC improves Conformance Quality)
5. Difference: Flexibility can be potential, but quality
is demonstrated.
FLEXIBILITY: MANY DIFFERENT TERMS
Agility
Robustness
Resilience
FLEXIBILITY: MANY TYPES
FLEXIBILITY
Type of Uncertainty
Strategic Objective
Flexibility Dimension
Market acceptance of
range of products
Diverse Product Mix
Mix
Length of Product life
cycle
Product Innovation
Changeover
Specific Product
Characteristics
Responsiveness to
customer specs
Modification
Aggregate Product
Demand
Market Share
Machine Downtime
Customer Due Date
Rerouting
Characteristics of
Material
Product Quality
Material
Volume
DEFINING FLEXIBILITY
DEFINING FLEXIBILITY
What for??
DEFINING FLEXIBILITY
What for??
How often??
DEFINING FLEXIBILITY
What is that needs to be flexible?
What for??
How often??
DEFINING FLEXIBILITY
Across the range what needs to be same
What for??
How often??
DEFINING FLEXIBILITY
With little penalty when changing
What for??
How often??
TIME HORIZON: HOW OFTEN
Operational
Tactical
Strategic
RANGE: WHAT CHANGES
Range refers what is to be changed
Volume range over which plant is profitable
Range of products
Range of raw materials the plant’s process
can handle
MOBILITY: WITH LITTLE PENALTY
Time or Cost impact for changing Volume or
product mix
UNIFORMITY: WITH LITTLE PENALTY
Yield or quality is the same across production
volumes or across product mix
FLEXIBILITY
Type of Uncertainty
Strategic Objective
Flexibility Dimension
Market acceptance of
range of products
Diverse Product Mix
Mix
Length of Product life
cycle
Product Innovation
Changeover
Specific Product
Characteristics
Responsiveness to
customer specs
Modification
Aggregate Product
Demand
Market Share
Machine Downtime
Customer Due Date
Rerouting
Characteristics of
Material
Product Quality
Material
Volume
FLEXIBILITY
FIRM
No of varieties produced
Defect Rate (%)
Change over
time (mins)
A
10
10
10
B
5
15
5
C
4
2
7
Which is most flexible
FLEXIBILITY
FIRM
No of
varieties
produced
Defect
Rate
(%)
Change
over time
(mins)
Flexibility
A
10
10
10
Mix
Range
B
5
15
5
Changeover
Mobility
C
4
2
7
Changeover
Uniformity
FLEXIBILITY
FLEXIBILITY
FLEXIBILITY
YOUR COMMENTS ON THIS CELL DESIGN
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NAGARE CELL
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NAGARE CELL
2
min
s
5
min
s
3
min
s
NAGARE CELL
A
NAGARE CELL
3 Workers
NAGARE CELL
2
min
s
3 Workers
5
min
s
A
3
min
s
NAGARE CELL
2
min
s
`Capacity
5
min
s
A
3
min
s
of this cell
NAGARE CELL
2
min
s
`Cycle
5
min
s
A
3
min
s
Time = 5 mins
NAGARE CELL
2
min
s
`Cycle
5
min
s
A
3
min
s
Time = 5 mins
Capacity = 12/hr
NAGARE CELL
If only 2 workers are there
`
NAGARE CELL
2
min
s
`If
5
min
s
3
min
s
only 2 workers are there
NAGARE CELL
B
NAGARE CELL
2
min
s
`Capacity
5
min
s
B
3
min
s
NAGARE CELL
2
min
s
`Cycle
5
min
s
B
3
min
s
Time = 5
NAGARE CELL
Cycle Time = 5
`Capacity = 12
2
min
s
5
min
s
B
3
min
s
NAGARE CELL
C
NAGARE CELL
2
min
s
`Capacity
5
min
s
C
3
min
s
NAGARE CELL
Cycle Time
2
min
s
5
min
s
C
3
min
s
= 7 mins
NAGARE CELL
Cycle Time = 7 mins`
Capacity/hr = 8.57
2
min
s
5
min
s
C
3
min
s
NAGARE CELL
D
NAGARE CELL
2
min
s
5
min
s
D
3
min
s
NAGARE CELL
2
min
s
Capacity
5
min
s
D
3
min
s
NAGARE CELL
2
min
s
Cycle Time = 8mins
5
min
s
D
3
min
s
NAGARE CELL
Cycle Time = 8 mins
Capacity/hr = 7.5
2
min
s
5
min
s
D
3
min
s
NAGARE CELL
E
NAGARE CELL
`If
2
min
s
5
min
s
E
3
min
s
only 1 worker
NAGARE CELL
2
min
s
Cycle Time
5
min
s
E
3
min
s
= 10 mins
NAGARE CELL
2
min
s
Cycle Time = 10 mins
Capacity/hr = 6
5
min
s
E
3
min
s
NAGARE CELL
Various Possibilities of
Capacity
12
8.57
7.5
6
NAGARE CELL
2
min
s
5
min
s
E
3
min
s
Various Possibilities of
Capacity
12
8.57
7.5
6
NAGARE CELL
1 worker
2
A
5
3
Capacity 12/hr
Stn 2 and 3 combined
2 worker
B
Capacity 12/hr
3 worker
E
Capacity 6/hr
Stn 2 and 5 combined
C
Capacity 8.57/hr
Stn 3 and 5 combined
D
Capacity 7.5/hr
NAGARE CELL
Which will you choose?
Stn 2 and 3 combined
2 worker
B
Capacity 12/hr
Stn 2 and 5 combined
C
Capacity 8.57/hr
Stn 3 and 5 combined
D
Capacity 7.5/hr
PROCESS FUNDAMENTALS
Samosa Making
Rajiv Misra
PROCESS FUNDAMENTALS
Samosa Making
The process is in two parts
Dough: Mix, Proof, Roll and Cut
Fillings: Mix (Potatoes)
With Dough and Filling ready.
Fill and Fold, Fry and Pack
Draw it diagrammatically
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PROCESS FUNDAMENTALS
Samosa Making
Dough
Fills
MIX
PROOF
Roll/Cut
Fry
Pack
Parallel lines – but is it same as earlier
What is the Capacity?
FG
MIX
Fills
Fill/Fold
Dough
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PROCESS FUNDAMENTALS
Drawing a Process Diagram
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PROCESS FUNDAMENTALS
Drawing a Process Diagram
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PROCESS FUNDAMENTALS
Drawing a Process Diagram
Hand Washing
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PROCESS FUNDAMENTALS
Handwashing
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PROCESS FUNDAMENTALS
Handwashing
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PROCESS FUNDAMENTALS
Bread Making Revisted
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PROCESS FUNDAMENTALS
Bread Making
Bread Making
WI
P
Packing
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MEASURES
Bread Making
WI
P
Packing
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MEASURES
WI
P
Bread Making
P Q
D
Packing
S
C
M
E
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MEASURES
Focused
Tradeoffs
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MEASURES
Measurements Drive Behavior
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MEASURES
Grades
Taguchi Quality Loss Function
APGAR
C-section
Pay for service (or health?)
Purchasing Managers Index
Net Promoter Score
Economic Value Added
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PROCESS FUNDAMENTALS
Bread Making
Bread Making
1 hour per 100 loaves
WI
P
Packing
3 / 4 hour per 100 loaves
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PROCESS FUNDAMENTALS
Bread Making
Bread Making
1 hour per 100 loaves
WI
P
Packing
3 / 4 hour per 100 loaves
What is the CYCLE TIME
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PROCESS FUNDAMENTALS
Bread Making
Bread Making
1 hour per 100 loaves
WI
P
Packing
3 / 4 hour per 100 loaves
What is the CYCLE TIME = 60/100 (Units??)
What is the Manufacturing Lead Time
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PROCESS FUNDAMENTALS
Bread Making
Bread Making
1 hour per 100 loaves
WI
P
Packing
3 / 4 hour per 100 loaves
What is the CYCLE TIME = 60/100 (Units??)
What is the Manufacturing Lead Time = 1 and 3 /4 hours
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PROCESS FUNDAMENTALS
Bread Making II
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CYLCE TIME AND TAKT TIME
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CYLCE TIME AND TAKT TIME
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MLT
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MLT
HIOSPITALS AND HILL STATIONS
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PROCESS FUNDAMENTALS
Bread Making
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
What is the CYCLE TIME
What is the Manufacturing Lead Time
Rajiv Misra
PROCESS FUNDAMENTALS
Bread Making
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
What is the CYCLE TIME
What is the Manufacturing Lead Time
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PROCESS FUNDAMENTALS – CASE 1
1 hour per 100 loaves
What is the Manufacturing Lead Time
It depends on schedule.
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Case 1 – Each batch starts every 3 / 4 hours
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 1
What is the Manufacturing Lead Time
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Each batch starts every 3 / 4 hour to coincide with packing
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PROCESS FUNDAMENTALS – CASE 1
What is the Manufacturing Lead Time
Line #
Batch #
Start
Bread
End
Bread
Line 1
Line 2
Line 1
Line 2
Batch 1
Batch 2
Batch 3
Batch 4
9.00
9.45
10.30
11.15
10.00
Pack end
10.45
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PROCESS FUNDAMENTALS – CASE 1
What is the Manufacturing Lead Time
Line #
Batch #
Start
Bread
End
Bread
Line 1
Line 2
Line 1
Line 2
Batch 1
Batch 2
Batch 3
Batch 4
9.00
9.45
10.30
11.15
10.00
10.45
11.30
12.15
Pack end
10.45
11.30
12.15
MLT = 1 and 3 / 4 hours
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PROCESS FUNDAMENTALS – CASE 2
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
Case 2 – Each machine is loaded every 1 and ½ hr
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PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
1 / 2 hour per 100 loaves
1 and 1/2 hr so that bread stock does not pile up
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PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
Line # Batch #
Start
Bread
End
Bread
Pack
Start
Pack MLT (HR)
end
Line 1
Line 2
Line 1
Line 2
9.00
9.00
10.30
10.30
10.00
10.00
11.30
11.30
10.00
10.45
Batch 1
Batch 2
Batch 3
Batch 4
1-3/4
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PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
Line # Batch #
Start
Bread
End
Bread
Pack
Start
Pack MLT (HR)
end
Line 1
Line 2
Line 1
Line 2
9.00
9.00
10.30
10.30
10.00
10.00
11.30
11.30
10.00
10.45
11.30
12.15
10.45
11.30
12.15
1.00
Batch 1
Batch 2
Batch 3
Batch 4
1-3/4
2-1/2
1-3/4
2-1/2
MLT = Average of 1-3/4 and 2-1/2 hours = 2- 1/8 hours
Rajiv Misra
PROCESS FUNDAMENTALS – CASE 2
What is the Manufacturing Lead Time
Line # Batch #
Start
Bread
End
Bread
Pack
Start
Pack MLT (HR)
end
Line 1
Line 2
Line 1
Line 2
9.00
9.00
10.30
10.30
10.00
10.00
11.30
11.30
10.00
10.45
11.30
12.15
10.45
11.30
12.15
1.00
Batch 1
Batch 2
Batch 3
Batch 4
1-3/4
2-1/2
1-3/4
2-1/2
MLT = Average of 1-3/4 and 2-1/2 hours = 2- 1/8 hours
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THREE FUNDAMENTAL VARIABLE
MLT, CT and WIP
1 hour per 100 loaves
Bread Making
WI
P
Packing
Bread Making
3 / 4 hour per 100 loaves
1 hour per 100 loaves
CASE A
CASE B
Machines alternatively start
every 45 mins
Both machines start
together every 90 mins
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DERIVE A RELATION BETWEEN
Manufacturing Lead Time
Work in Process
Cycle Time
Form of equation will be
MLT = ? ? ?
eg
MLT = WIP + CT) or MLT= (WIP +1) /CT
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A Simulation
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A Simulation
1
2
3
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A Simulation
C, B, A
1
TIME
1 mins
2
3
3 mins
2 mins
A, B, C are the Customers in QUEUE
Average Number in Queue is 3
(i.e When A goes out, D comes in)
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A Simulation
C, B, A
1
TIME
1 mins
2
3
3 mins
2 mins
A, B, C are the Customers in QUEUE
Average Number in Queue is 3
(i.e When A goes out, D comes in)
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A Simulation
C, B
A
1
TIME
1 mins
2
3
3 mins
2 mins
9:01
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A Simulation
C,
B, A
1
TIME
1 mins
2
3
3 mins
2 mins
9:02
Rajiv Misra
A Simulation
C, B, A
1
TIME
1 mins
2
3
3 mins
2 mins
9:03
Rajiv Misra
A Simulation
C, B
1
TIME
1 mins
A
2
3
3 mins
2 mins
9:04
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A Simulation
D
C, B
1
TIME
1 mins
A
2
3
3 mins
2 mins
9:06
Rajiv Misra
A Simulation
C, B, A
1
TIME
1 mins
2
3
3 mins
2 mins
A, B, C are the Customers in QUEUE
Average Number in Queue is 3
(i.e When A goes out, D comes in)
Rajiv Misra
A Simulation
C, B, A
1
TIME
1 mins
2
3
3 mins
2 mins
A, B, C are the Customers in QUEUE
Average Number in Queue is 3
(i.e When A goes out, D comes in)
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A
TIME
M/c 1 time = 1 min
Queue
0
C,B
M/c 2
Queue
time = 3min
M/c 3
Queue
time = 2min
A
1
A
2
A
3
A
4
A
5
A
6
OUTPUT
D
A (6)
7
8
9
New Customer
11
enters
10
We will trace the paths Customer by Customer
12
13
Process
14
15
16
Queue
17
18
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B
TIME
M/c 1 time = 1 min
Queue
0
C,B
1
M/c 2
min
Queue
time = 3
M/c 3
min
Queue
time = 2
A
B
A
2
B
A
3
B
A
4
B
A
5
B
A
6
D
B
A (6)
7
B
8
B
9
E
OUTPUT
B(9)
10
11
12
13
14
15
16
17
18
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c
TIME
M/c 1 time = 1 min
Queue
0
C,B
M/c 2
min
Queue
time = 3
M/c 3
min
Queue
time = 2
A
1
B
2
C
A
B
A
3
C,B
A
4
C
B
A
5
C
B
A
C
B
6
D
A (6)
7
C
B
8
C
B
9
E
C
B(9)
10
C
11
C
12
F
OUTPUT
C(12)
13
14
15
16
17
18
Rajiv Misra
D
TIME
M/c 1 time = 1 min
Queue
0
C,B
M/c 2
min
Queue
time = 3
M/c 3
min
Queue
time = 2
A
1
B
2
C
A
B
A
3
C,B
A
4
C
B
A
5
C
B
A
C
B
7
D
C
B
8
D
C
B
D
C
6
9
D
E
D
A (6)
B(9)
10
D
C
11
D
C
12
F
D
C(12)
13
D
14
D
15
G
OUTPUT
D(15)
16
17
18
Rajiv Misra
E
TIME
M/c 1 time = 1 min
Queue
0
C,B
M/c 2
min
Queue
time = 3
M/c 3
min
Queue
time = 2
A
1
B
2
C
A
B
A
3
C,B
A
4
C
B
A
5
C
B
A
C
B
7
D
C
B
8
D
C
B
D
C
10
E
D
C
11
E
D
C
12
E
D
6
9
D
E
D
E
A (6)
B(9)
C(12)
13
E
D
14
E
D
15
E
D(15)
16
E
17
E
18
OUTPUT
E(18)
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THE RELATIONSHIP
Rajiv Misra
LITTLE’S LAW
Manufacturing Lead Time = Work in Progress * Cycle Time
Rajiv Misra
LITTLE’S LAW
Manufacturing Lead Time = Work in Process * Cycle Time
• Cycle Time is ‘drop off’ rate.
• MLT is the time a specific part enter and leaves the system
• Obvious. But we confuse MLT with Cycle Time in Quoting
• Lead Times
• The Law holds for single machines, lines or whole plants
• It holds for plants with or without variability
• It is true for averages over some time (‘Steady State’)
Rajiv Misra
LITTLE’S LAW
Manufacturing Lead Time = Work in Process * Cycle Time
➢Connect Finance to Operations
➢Manufacturing versus Service (Levers to control)
➢Internet
➢CONWIP
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LITTLE’S LAW EXAMPLES
• Boeing stopped production on late planes (reducing WIP)
• New orders secured, without heeding increase in MLT
• Too many new projects
• Banks, Clinics, Railway Stations
• Lifts and airport and Web sites (Behavioral aspects)
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CITIZEN CHARTER
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CITIZEN CHARTER
• Passport must be delivered within 2 weeks
• Good measure?
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CITIZEN CHARTER
• Passport must be delivered within 2 weeks
• Good measure?
• No relation to WIP
• Can they hire people?
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CALCULATE!
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CALCULATE!
Manufacturing Lead Time = Work in Process * Cycle Time
1
TIME
1 mins
2
3 mins
3
2 mins
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CALCULATE!
Manufacturing Lead Time = Work in Process * Cycle Time
1
TIME
2
1 mins
3 mins
3
2 mins
What is MLT if WIP =1
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CALCULATE
Inspect
10 mins
Washing
5 mins
What is Cycle Time?
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CALCULATE
Inspect
10 mins
Washing
30 mins
What is Cycle Time?
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CRITICAL WIP
Inspect
10 mins
Washing
30 mins
What is Cycle Time?
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CRITICAL WIP
Inspect
10 mins
Washing
30 mins
Critical WIP increases
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CYCLE TIME
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CYCLE TIME
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CYCLE TIME
Mercedes seat
Nano seat
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MLT
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MLT
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MLT
1 slice
100
gm
1 gm
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MLT
2 mins
3 mins
5 mins
1 mins
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MLT
CT =5 mins
Rajiv Misra
MLT
CT =5 mins
Average WIP in System
Slices = 200, Potatoes = 10 kg, Salt = 1kg
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MLT
1 slice
2mins
100 gm
3 mins
5 mins
1 gm
1 min
Average WIP in System
Slices = 200, Potatoes = 10 kg, Salt = 1kg
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MLT
MLT
(mins)
200 * 5
(Slice)
1 slice
2mins
10,000/100 * 5
(Potatoes)
100 gm
3 mins
5 mins
1000/1 * 5
(Salt)
1 gm
1 min
Average WIP in System
Slices = 200, Potatoes = 10 kg, Salt = 1kg
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MLT
MLT
1000 mins
1 slice
2mins
500 mins
100 gm
3 mins
5 mins
1 gm
1 min
5000 mins
Average WIP in System
Slices = 200, Potatoes = 10 kg, Salt = 1kg
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MLT
MLT
1000 mins
1 slice
2mins
500 mins
100 gm
3 mins
5 mins
1 gm
1 min
5000 mins
Freshness of Sandwich
The slice is 1000 mins old
Potatoes 500 mins
Salt 5000 mins
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MLT: FINANCIALS
Rajiv Misra
MLT: FINANCIALS
MLT
1000 mins
1 slice
2mins
500 mins
100 gm
3 mins
5 mins
1 gm
1 min
5000 mins
PRICE
Slices = For
Rs 1/pc,
= Rs 100/kg, Salt = Rs 10/kg
onePotatoes
sandwich
One Slice (One rupee) is stuck for 1000 mins
Potatoes (Ten rupees) is stuck for 500 mins
Salt (0.01 rupess) is stuck for 5000 mins
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MLT: FINANCIALS
MLT
1000 mins
1 slice
2mins
500 mins
100 gm
3 mins
5 mins
1 gm
1 min
5000 mins
For one sandwich
One Slice (One rupee) is stuck for 1000 mins
Potatoes (Ten rupees) is stuck for 500 mins
Salt (0.01 rupess) is stuck for 5000 mins
One can work out how much is the money (‘Opportunity’ ) lost due to interest
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PURPOSE OF PROCESS PLANS
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PURPOSE OF PROCESS PLANS:
IMPROVE BY QUESTIONING WASTE
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WASTE
If a customer could see all of
the activities in your company,
would he be prepared to pay
for them?
Transporting
Overproduction
Because that is what he does!
Seven Muda
(waste)
Non Value adding to product or
Waiting
service from the POV of the Customer
Unnecessary
Motion
Unnecessary Inventory
Inappropriate
Processing
Defects
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BRICK LAYING IN THE 19TH CENTURY
The brick weighs about five pounds (2.3 kg). How much is
the worker actually raising and lowering every time he
bends over for another brick?
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BRICK LAYING AFTER GILBRITH
• Waste can, by long habit ("living with it,"
"working around it") become built into a job.
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WHAT DO YOU SEE?
Waste can, by long habit ("living with it,"
"working around it") become built into a job.
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VALUE STREAM MAP
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EXAMPLES – TATA METTALIKS
Bunker House Day
TH -1
Bins
35
m3
240
m3
170
m3
170
m3
Thickener
TH -2
80
m3
Sump
M
B
F
CB 3
A
B
DM
Plant
GAS
PH Cooling
Tower
F D Fan
I D Fan
1
2
DG
DG
SG
PUMPS
BLOWER
AIR
DG
E
Hot Metal
425 TPD
Hot Metal
PIG IRON
Flare
Stack
Boiler
19 Ton/Hr.
TG
Sump
HOLDE
R
5000M3
D
GCP
Sump
Power House
C
4
3
Ladle
MBP
1
5
6
2
COMPRESSOR
Shell & Tuyere
Return Pumps
Scrap
PCM
Transformer
I D Fans
F D Fans
MBP
Stack
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CURRENT STATE MAP OF TML
Production Control
Raw Material
Supplier
Monthly Order
MRP
Customer
Daily Order
Daily Prod
Schedule
RM feeding
& Batching
C/T: 300s
C/O: 6 hr
Oper: 1
Uptime:
98%
Shifts: 3
15 Days
Smelting
Tapping
Casting
Despatch
C/T: 7 hr
C/O: 10 hr
Oper: 1
Uptime:
95%
Shifts: 3
C/T: 0.5
hr
C/O: 0
Oper: 1
Uptime:
100%
Shifts: 3
C/T: 100
min
C/O: 0
Oper: 1
Uptime:
95%
Shifts: 3
Stacking
15 mins
90 mins
10 Mins
2.5 Days
17.5 Days
9.25 hrs
5 min
7 hr
30 min
100 min
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SWIM LANES
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SWIM LANES
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PROCESS IN UX
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BPMN
Business Process Model Notation
Many competitors
UML/EPC/IDEF3
YAWL
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BPMN
Business Process Model Notation
Many competitors
UML/EPC/IDEF3
YAWL (Yet Another Workflow Language)
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PROCESS FUNDAMENTALS
Bread Making
MIX
PROOF
BAKE
R
M
WI
P
MIX
PROOF
PACK
BAKE
FG
Individual Tasks operate in Parallel
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PROCESS FUNDAMENTALS
Bread Making II
MIX
R
M
PROOF
BAKE
WI
P
x
MIX
PROOF
PACK
BAKE
FG
XOR – Only one outgoing branch can be taken
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PROCESS FUNDAMENTALS
Samosa Making
Dough
Fills
MIX
PROOF
Roll/Cut
Fry
Pack
Parallel lines – but is it same as earlier
What is the Capacity?
FG
MIX
Fills
Fill/Fold
Dough
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PROCESS FUNDAMENTALS
Samosa Making
Dough
MIX
PROOF
Roll/Cut
Dough
+
Fills
MIX
Fills
Fill/Fold
Fry
Pack
FG
AND – both are needed to go ahead
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An BPMN EXERCISE
Once you receive your boarding pass
You proceed to Security
Your baggage is screened for X-Ray.
You are screened for security by CISF
After both are done, you proceed to
Departure Gate
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PROCESS FUNDAMENTALS
Pass
security
Proceed
to
Security
Boarding Pass
received
Proceed to
Departure
Pass
luggage
security
Reach departure
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An PROCESS EXERCISE
Once you receive your boarding pass
You proceed to Security
Your baggage is screened for X-Ray.
You are screened for security by CISF
After both are done you are allowed for going to
Departure Gate
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An PROCESS EXERCISE
Pass
security
screening
Proceed
to
Security
Boarding Pass
received
Proceed to
Departure
Pass
luggage
screening
Reach departure
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BPMN PROCESS
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A BPMS SYSTEM EXAMPLE
https://youtu.be/P7EcLl_FeaM
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MEASURING PROCESS KNOWLEDGE
1.
2.
3.
4.
5.
6.
7.
8.
Ignorance
Awareness
Measure
Control of Mean
Process Capability
Process Categorization (Know how)
Know why
Know all
MEASURING PROCESS KNOWLEDGE
Cooking Maggie Noodles
“Art to Science”
1. IGNORANCE
Cooking Maggie Noodles
2. AWARENESS
Jog my memory for possible variables
Amount of water
When to add the masala
When to add the noodle
Time
3. MEASURE
Start measuring
Amount of water using a cup
Time using the watch
Setting of the gas burner knob
4. CONTROL OF MEAN
Start measuring (Stage 3 led quickly to Stage 4)
Amount of water using a cup – make a mark
Time using the watch – used stopwatch on cell
Setting of the gas burner knob -- marking
5. PROCESS CAPABILITY
Process is now repeatable
I can now control the major variables
I now have a recipe
Maggie is not too bad
6. PROCESS CATEGORIZATION (Know how)
Experimentation and fine tuning
I now experiment with the major variables
Time variations
And also indentify secondary variables
When to add the masala
Vessel type – glass, plastic, steel?
7. KNOW WHY
I surf the net and
know why it happens the way it does
Understand the biochemistry etc etc
8. KNOW ALL
Process is now a science
PROCESS KNOWLEDGE
HOW WE MANAGE DEPENDS ON THE STAGE
PROCESS KNOWLEDGE
HOW WE MANAGE DEPENDS ON THE STAGE
DEVELOPMENTS IN PROCESS MANAGEMENT
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GARTNER HYPE CYCLE
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DEVELOPMENTS IN PROCESS MANAGEMENT
Process Mining
Human Analytics
Robotic Process Automation
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