Chapter 11: Process Design and Analysis

1. This is a part of an organization that takes inputs and transforms them into outputs.
Transformation process.
The transformation process is the core of any business operation. It refers to the steps or
activities that take inputs (such as raw materials, labor, and information) and convert them into
outputs (products or services). This process is central to operations management and includes
all the processes that create value for customers and the business.

2. This is the ratio of the time that a resource is activated relative to the time it is available
for use.
Utilization.
Utilization is the measure of how effectively a resource (such as a machine, worker, or
equipment) is being used. It is calculated by dividing the time the resource is actively engaged in
productive work by the total time it is available for use. High utilization indicates that resources
are being used efficiently, while low utilization may suggest inefficiency or underuse.

3. This is when one or more activities stop because of a lack of work.

Idle time.
Idle time occurs when workers or machines are not being utilized because there is no work
available. This can be a result of poor scheduling, fluctuations in demand, or a misalignment
between the process flow and available work. Idle time represents an opportunity cost, as
resources are available but not being used efficiently.

4. This is when an activity stops because there is no place to put the work that was just
completed.
Blocking.
Blocking occurs when one step in a process is completed, but there is no space or capacity to
move the completed work to the next step. This can lead to bottlenecks in the workflow, as work
is stuck at a particular point in the process, preventing further progress. It is often a sign of
inefficiencies or lack of synchronization between process steps.

5. This is a step in a process that is the slowest compared to the other steps. This step limits
the capacity of the process.
Bottleneck.
A bottleneck is the slowest or most limiting step in a process that reduces the overall capacity of
the entire system. It dictates the pace of production, as the flow of work is dependent on how
quickly this step can be completed. Identifying and addressing bottlenecks is a key focus in
improving operational efficiency and increasing throughput.

6. What is the difference between McDonald’s old and current processes?

The old process focused on individual orders and slow manual service, while the current
process emphasizes standardized workflows and automation.
McDonald's has evolved significantly over time. In its old process, service was largely manual
and involved workers preparing each order individually, which resulted in longer wait times and
less efficiency. In contrast, McDonald's current processes focus on standardization,
automation, and assembly-line techniques to increase speed, reduce costs, and improve
service consistency. This shift to a fast-food production line model, combined with the use of
technology like self-order kiosks, has greatly improved customer experience and operational
efficiency.

7. This refers to the fixed timing of the movement of items through a process.
Flow time.
Flow time refers to the time it takes for a unit (whether it’s a product, customer, or order) to move
through a process, from the beginning to the end. In the context of production or service systems,
it often involves predefined or fixed timing at each step to ensure smooth progression and
minimize delays. Maintaining consistent flow time is important to ensure that throughput meets
customer demand.

8. This is when one company compares itself to another relative to operations performance.
Benchmarking.
Benchmarking is the practice of comparing a company’s performance in various operational
areas (such as cost, quality, and efficiency) to that of other companies, often leaders in the
industry. This helps organizations identify best practices and areas for improvement by learning
from the successes of others. Benchmarking can be done through internal comparisons or by
using external companies as a reference.

9. This is the time it takes a unit to travel through the process from beginning to end. It
includes time waiting in queues and buffers.
Throughput time.
Throughput time is the total time it takes for a unit (product, service, or customer) to move
through a process, from start to finish. It includes both processing time and any waiting time
that occurs in queues, buffers, or between steps. Reducing throughput time is critical to
improving efficiency and responsiveness in production and service systems.

10. The relationship between time and units in a process is called this.
Cycle time.
Cycle time is the time it takes to complete one cycle of a process, typically measured from the
start of production to the completion of one unit. It can be used to measure the time taken per
unit, batch, or process cycle, and it is crucial for understanding the pace at which work is
completed and how well the system is performing.

11. What is the mathematical relationship between time and units in a process?
Time = Cycle time × Number of units.
The relationship between time and units in a process is generally described by the equation:
Cycle time represents the time it takes to produce one unit of output. By multiplying it by the
number of units, you can determine the total time required to produce that many units in a
process.

12. What is the major assumption about how a process is operating for Little’s Law to be
valid?
The process must be in a steady state.
For Little’s Law to be valid, the system must be in a steady state, meaning that the arrival rate of
work entering the system is equal to the rate at which work is leaving the system. Little’s Law is
commonly expressed as:

𝐿 = 𝜆 × 𝑊.

Where L is the average number of items in the system, λ is the arrival rate of items, and W is the
average time an item spends in the system. The steady-state assumption ensures that the
system is neither accumulating nor depleting work unexpectedly.

13. What is the double-edged sword of job design?

Specialization and task monotony.
The double-edged sword of job design refers to the trade-off between the benefits and
drawbacks of specialization in work tasks. While breaking jobs down into highly specialized
tasks can improve efficiency and expertise, it can also lead to monotony, reducing worker
motivation and satisfaction. A balance must be struck between efficient task design and
maintaining employee engagement.

14. This is when a job is increased vertically or horizontally.

Job enrichment or job enlargement.
Job enrichment and job enlargement are two methods used to enhance employee roles:

• Job enrichment involves increasing the depth of a job by adding more responsibilities,
decision-making authority, or opportunities for skill development (vertical increase).
• Job enlargement refers to increasing the breadth of a job by adding more tasks at the
same level of responsibility (horizontal increase).
Both aim to increase job satisfaction and motivation.

15. What are the four basic work measurement techniques?

Time study, work sampling, predetermined motion time systems (PMTS), and standard data.
The four basic work measurement techniques used to analyze and improve work processes are:

1. Time study: Observing and timing workers to determine the average time to perform a
task.
2. Work sampling: Taking random samples of work and recording the activities being
performed to estimate the proportion of time spent on various tasks.
3. Predetermined motion time systems (PMTS): Using predetermined time values for
basic motions (such as reaching, lifting, etc.) to estimate the time required for a task.
4. Standard data: Using historical data or industry benchmarks for specific tasks to
establish expected times for work activities.