MGMT 361 1st Edition Lecture 5Last Lecture I. Forecasting (II)Current Lecture Outline I. What is a process?II. How to analyze a processCurrent Lecture I. What is a processa. Process Viewi. Inputs are used in the process and transformed into outputs (raw materials)ii. Outputs are coming out of the process- finished products iii. Resources are used to transform inputs into outputs but are not incorporated into outputs (labor and capital)1. WIP- kept in process II. Framework a. Draw a Flowchart b. Determine Capacity for each resource in the process and identify bottleneckc. Calculate relevant process measured. Consider changes to improve system performance i. Elements of a process1. Activities a. Carried out by resources b. Add value and are required for completion of a flow unit c. Have a capacity (maximum number of units that can flow through the activity within a unit of time)2. Arrows a. Indicate direction 3. Inventory/buffersi. May be limitedii. Process Measure: Capacity1. Resource (stage) capacity: how many units a resource (or a stage) can produce in a given time the face game- how These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.many circles; realized there was a bottleneck: task 2; most difficult stage in the process 2. Process capacity: how many units the entire process can produce in a given time? – in face game: how many faces cane be drawn?iii. Capacity as a resource = 1/ activity time (time is takes to process one unit) 1. Be careful with the time unit and unit for