| | | | | -------------- | ---------------------------------------------------------------- | ----------------------------------------------------------------------------------- | | **Chapter** | **Title** | **Subsection** | | **PART I** | **PROCESS MANAGEMENT AND STRATEGY** | | | 1 | **Products, Processes, and Performance** | | | | | 1.1 Introduction | | | | 1.2 The Process View of Organizations | | | | 1.3 Products | | | | 1.3.1 Product Attributes | | | | 1.3.2 Product Types: Goods versus Services | | | | 1.4 Processes | | | | 1.4.1 Process Attributes | | | | 1.4.2 Process Architectures or "Types". Job Shop versus Flow Shop | | | | 1.5 Performance | | | | 1.5.1 The Importance of Measurement: Management by Fact | | | | 1.5.2 Types of Measures: External versus Internal | | | | 1.5.3 Types of Measures: Financial versus Operational | | | | 1.6 Process Planning versus Process Control | | 2 | **Operations Strategy and Management** | | | | | 2.1 Introduction | | | | 2.2 The Strategy Hierarchy | | | | 2.3 Strategic Fit | | | | 2.4 Focused Operations | | | | 2.5 Matching Products and Processes | | | | 2.6 Strategic Positioning and Operational Effectiveness | | | | 2.7 The Evolution of Strategy and Process Management | | **PART II** | **PROCESS FLOW MEASUREMENT** | | | 3 | **Process Flow Measures** | | | | | 3.1 Introduction | | | | 3.2 Flow Rate (Throughput Rate) | | | | 3.3 Flow Time | | | | 3.4 Inventory | | | | 3.5 Relating Flow Rate, Flow Time, and Inventory | | | | 3.6 Examples | | | | 3.7 Inventory Turns (Turnover Ratio) | | | | 3.8 What Is an Improvement? | | 4 | **Flow-Time Analysis** | | | | | 4.1 Introduction | | | | 4.2 The Process Flow Chart | | | | 4.3 Flow-Time Measurement | | | | 4.4 The Critical Path Method | | | | 4.5 Managing Theoretical Flow Time | | | | 4.6 Levers for Managing Flow Time | | 5 | **Flow-Rate and Capacity Analysis** | | | | | 5.1 Introduction | | | | 5.2 Resources and Resource Pools | | | | 5.3 Flow Rate Measurement 44 | | | | 5.4 Effect of Product Mix on Theoretical Capacity and Profitability of a Process 45 | | | | 5.5 Other Factors Affecting Process Capacity 46 | | | | 5.6 Improving Theoretical Capacity 47 | | | | 5.7 Levers for Managing Flow Rate 48 | | 6 | **Inventory Analysis** 49 | | | | | 6.1 Introduction 50 | | | | 6.2 Inventory Stocks and Fluctuation 51 | | | | 6.3 Batch Purchasing (Processing) 52 | | | | 6.4 Inventory Costs 53 | | | | 6.5 Inventory Benefits 54 | | | | 6.6 Optimal Cycle Inventory and Economies of Scale 55 | | | | 6.7 Effect of Lead Times on Ordering Decisions 56 | | | | 6.8 Levers for Managing Inventories 57 | | **PART III** | **PROCESS FLOW VARIABILITY** 58 | | | 7 | **Managing Flow Variability: Safety Inventory** 59 | | | | | 7.1 Introduction 60 | | | | 7.2 Demand Forecasts and Forecast Errors 61 | | | | 7.3 Safety Inventory and Service Level 62 | | | | 7.4 Optimal Service Level: The Newsvendor Problem 63 | | | | 7.5 Lead Time Demand Variability 64 | | | | 7.6 Pooling Inventories Through Aggregation 65 | | | | 7.7 Shortening the Forecast Horizon Through Supply Postponement 66 | | | | 7.8 Levers for Reducing Safety Inventory 67 | | 8 | **Managing Flow Variability: Safety Capacity** 68 | | | | | 8.1 Introduction 69 | | | | 8.2 Service Process and Performance Measures 70 | | | | 8.3 Delay and Congestion in a Queuing Process Without Variability 71 | | | | 8.4 Drivers of Process Performance 72 | | | | 8.5 The Effect of Variability on Average Process Performance 73 | | | | 8.6 The Effect of Utilization on Average Process Performance 74 | | | | 8.7 The Effect of Buffer Capacity on Average Process Performance 75 | | | | 8.8 Capacity Investment Decisions 76 | | | | 8.9 Synchronization of Capacity and Demand 77 | | | | 8.10 Variability of Process Performance 78 | | | | 8.11 Managing Customer Perceptions and Expectations 79 | | | | 8.12 Levers for Managing Flow Times in Service Operations 80 | | 9 | **Managing Flow Variability: Process Control and Capability** 81 | | | | | 9.1 Introduction 82 | | | | 9.2 Performance Variability 83 | | | | 9.3 Analysis of Variability 84 | | | | 9.4 Process Control 85 | | | | 9.5 Process Capability Measurement 86 | | | | 9.6 Process Capability Improvement 87 | | | | 9.7 Product and Process Design 88 | | | | 9.8 Levers for Controlling Process Variability and Improving Capability 89 | | **PART IV** | **PROCESS INTEGRATION** 90 | | | 10 | **Process Synchronization and Improvement** 91 | | | | | 10.1 Introduction 92 | | | | 10.2 The Process Ideal: Efficiency and Synchronization 93 | | | | 10.3 Waste and Its Sources 94 | | | | 10.4 Improving Flows in a Plant 95 | | | | 10.5 Improving Flows in a Supply Chain 96 | | | | 10.6 The Improvement Process 97 | | **APPENDIX 1** | **MBPF Checklist** 98 | | | | | A1.1 Process-Flow Measures 99 | | | | A1.2 Levers for Managing Theoretical Flow Time 100 | | | | A1.3 Levers for Managing Theoretical Capacity 101 | | | | A1.4 Levers for Reducing Waiting Time 102 | | | | A1.5 Levers for Controlling Process Variability 103 | | | | A1.6 Levers for Managing Flows in Processing Networks 104 | | **APPENDIX 2** | **Background Material in Probability and Statistics** 105 | | | | | A2.1 Random Variables, Mean, Variance, and Covariance 106 | | | | A2.2 Some Probability Distributions 107 | | **INDEX** | | 108 |