Information Systems

Quantitative Business Process Analysis Homework

30-04-2020

Use of formula Cycle Time Efficiency

Example:

Next table shows the time values associated with the activities for diagram on left. The time values are
broken down into processing time and waiting time. The activity time is the sum of these two values.
Using the processing times in next table and the flow diagram in Figure 5.6, the process time (or
theoretical CT) can be calculated as follows:
Processtime = 2 + 0.3 × 5 + 8 + 1.1 × (3 + 4 + 4) +max(2, 4) + 2 = 29.6min

The CT efficiency can now be found as follows:

Homework
Do groups of two students. One of them must be in industrial engineering
Delivery date: Friday 1st May at 23h59

1.
A Burger King processes on average 1200 customers/day (over the course of 15 h). At any given time, 60
customers are in the store. Customers may be waiting to place an order, placing an order, waiting for
the order to be ready, eating, and so on. What is the average time that a customer spends in the store?

2.
A branch office of the University Federal Credit Union processes 3000 loan applications per year. On the
average, loan applications are processed in 2 weeks. Assuming 50 weeks/year, how many loan
applications can be found in the various stages of processing within the bank at any given time?

3.
The process of designing and implementing a website for commercial use can be described as follows.
First, the customer and the web design team have an informational meeting for half a business day. If
the first meeting is successful, the customer and the web design team meet again for a full day to work
on the storyboard of the site. If the first meeting is not successful, then the process is over, which means
the customer will look for another web designer. After the storyboard is completed, the site design
begins; immediately after that, the site is developed. The design of the site typically takes 10 business
days. The development of the site requires 2 business days. While the site is being designed and
developed, the contents are prepared. It takes 5 business days to complete an initial draft of the
contents. After the initial draft is completed, a decision is made to have a marketing team review the
initial draft.
Experience shows that about 60% of the time the marketing review is needed and 40% of the time the
final version of the contents is prepared without the marketing review. The marketing review requires 3
business days, and the preparation of the final version requires 4 business days. The contents are then
put into the site. This activity is referred to as building. (Note that before the building can be done, the
development of the site and the contents must be completed.) Building the site takes about 3 business
days. After the site is built, a review activity is completed to check that all links and graphics are working
correctly. The review activity typically is completed in 1 business day. The final activity is the approval of
the site, which is done in half a business day. About 20% of the time, the sites are not approved. When
a site is rejected, it is sent back to the building activity. When the site is approved, the design process is
finished.
a. Draw this process using BPMN.
b. Calculate the CT

4.
Draw the example’s diagram using BPMN.

5.
Consider the process flowchart in next figure. The estimated waiting time and processing time for each
activity in the process are shown in next table. All times are given in minutes.
 a. Calculate the average CT for this process.
b. Calculate the CT efficiency.

6.
For the process flowchart in next figure, where the numbers between parentheses are the estimated
activity times (in minutes), calculate the average CT.

7.
What is the Theory of Constraints?
Look for a reading related to the topic and make a summary (maximum one page)