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Process-Flow
Analysis
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Outline
Systems Thinking
The Process View of Business
Flowchart Analysis
Materials-Flow Analysis
Using Process-Flow Analysis
Business Process Reengineering (BPR)
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Systems Thinking
Definition of a system
Application of systems thinking to
businesses
Role of cross functional teams in
systems analysis
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Flowchart Analysis
Targets process elements for change
Steps in process flow chart analysis
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Targets process elements for
change
Raw materials
Product (output) design
Job design
Processing steps used
Management control information
Equipment or tools
Suppliers
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Steps in process flow chart
analysis
O Select a process
O Form a team or individual as the project leader
O Decide on the objectives of the analysis
O Define customers and suppliers
O Describe the existing transformation process
O Develop improved process design
O Gain management approval of the improved
design
O Implement the new process design

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Materials-Flow Analysis
Objectives of MFA
Key concepts and tools:
EThroughput time
EAssembly drawing (Figure 7.2)
EAssembly (Gozinto) chart (Figure 7.3)
ERouting sheet (Figure 7.4)
EFlow Process Chart (Figure 7.5)

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Assembly Drawing for a Tricycle (Figure 7.2)
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Symbols for Flow-Process Chart
Operation (a task or work activity)
Inspection (an inspection of the product for
quantity or quality)
Transportation (a movement of material from
one point to another)
Storage (an inventory or storage of materials
awaiting the next operation)
Delay (a delay in the sequence of operations)
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Questions to Ask in FPA
What does the customer need?, operations are necessary? Can some
operations be eliminated, combined, or simplified?.
Who is performing the job? Can the operation be redesigned to use less
skill or less labor? Can operations be combined to enrich jobs? .
Where is each operation conducted? Can layout be improved? .
When is each operation performed? Is there excessive delay or
storage? Are some operations creating bottlenecks? ..
How is the operation done? Can better methods, procedures, or
equipment be used? .
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Information Flow Analysis
Types of information flow:
EInformation is the product of operation
EInformation is used for management control
Symbols used in information flow analysis
(Figure 7.9)
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Symbols for Information Processing Flow Chart
Origin of record (used to identify an operation that involves the addition
of significant data to a blank form)
Subsequent writing (a step in which significant data is added to an existing
record)
Handling operations (any nonproductive step, such as sorting, stapling, or
folding)
Move (a step in which the record is transported from one person, department,
or work place to another)
Inspection (used when the step involves examination of the quality or
clearness of a record)
Delay, file, and destroy (identifies a point or time at which the record is
inactive
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Sociotechnical Approach to PFA
Task 1: Def i ne scope of t he
process-flow study and general
problems
Task 1: Defi ne scope of the
process-flow study and general
problems
Task 1: Define scope of the
pr oc es s - f l ow s t udy and
general problems
Task 1: Define scope of the
pr oc es s - f l ow s t udy and
general problems
Task 1: Defi ne scope of the
process-flow study and general
problems
Task 1: Define scope of the
pr oc es s - f l ow s t udy and
general problems
Task 1: Define scope of the
pr oc es s - f l ow s t udy and
general problems
Task 1
Report
Task 1
Report
Task 1
Report
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Business Process Reengineering
(BPR)
BPR defined (Hammer and Champy)
BPR Philosophy
Principles of BPR
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BPR Philosophy
Does the reengineering consultant see
the glass as half full or half empty?




Neither.
Its the wrong size of glass!
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Principles of BPR
Organize around outcomes
Have the people who do the work, process
their own information
Put the decision point where work is
performed and build control into the
process
Eliminate unnecessary steps in the
process