MIS567 Processes

Elements of a Process

Inputs and Outputs

Flow Units

McDonalds

Customers

Food

Inventory Analyst

Input->Forecast, Available Inventory

Output->Purchasing plan

Network of Activities and Buffers

Examples

Order Fullfillment

r

Flow Unit-> OrdersTransformation -> From the receipt of an order to the delivery of a product

Production

r

Flow Unit-> ProductsTransformation -> From the receipt of materials to the completion of the finished product

Process Metrics

Absolute Measures

Revenues

Profit

Net Income

Cost

Relative Measures

Inventory Turns

ROI

ROA

"Survival" Strength

Cash Flow

External Measures

r

Measures that indicate the level of customer satisfaction.

Cost

r

Low cost propositions

Response Time

r

Lead time competencyOn time competencyTime-To-Market competency

Quality

r

Conformance - Works??Performance - Additional value

Variety / Flexibility

r

Customized propositionsVolume flexibility competency

Internal Measures

r

Focus on operations specifications

Cost

Flow Time

Flexibility

Quality

Process Architecture

Job Shop

r

Low VolumeHigh CostDepartmentally or functionally organized

Project

r

General equipment is usedSetup, Engineering, and Design all are done specificly to each project

Batch

r

It is the result of a job shop receiving an order for the same product over and over again.

Flow Shop

r

High volumeLow CostProduct focused

Line Flow

r

Specialized EquipmentMight be capital intensiveLow cost products

Continuous Shop

r

Only in chemical, refining industries

Classification by Customer Interface

Make to Stock

r

High volumeLow MaterialAverage WIPHigh FG

Make to Order

r

Low volumeHigh Raw Material Average WIPZero or low FG