MGMT 361 1st Edition Lecture 6Process Analysis 2Last Lecture I. What is a process?II. How to analyze a processCurrent Lecture Outline I. Recap a. Draw a Process Flowchart b. Determine Capacity for each resource in the process and identify the bottleneck c. Calculate relevant process measures d. Consider changes to improve system performances Current LectureI. Recap: The Process Viewi. Inputs: used in the process and transformed into outputs e.g. raw materials ii. Outputs: coming out of the process iii. Resources: transform inputs into outputs but are not incorporated into the outputs (labor, capital) iv. WIP: inventories kept in process b. Process Capacity i. Resource Capacity: how many units a resource can produce in a given time?1. In the face game how many circles can Student 1 draw in 1 minuteii. Process Capacity: how many units the entire process can produce in a given time?1. How many faces can be draw in 1 minute?c. Capacity of a resource: maximum amount of units the resource can produce in a given time = 1/Activity TimeThese 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.i. Activity Time (for one resource): time it takes to process one unit by one resource1. *Be careful with time unit and unit for capacityii. If the toaster needs 2 minutes to heat a sub  how many subs can be heated in 1 houriii. Reverse: if Toyota can make 1000 cars in a month  how long does it taketo make a carII. Process Capacity a. Bottleneck: resource with smallest capacity or the longest processing timeb. Process Cap: how much the process can produce in a given time i. Determined by bottleneck capacity -Process capacity= min[capacity of res 1,…, capacity of res k]=bottleneck resource capacity - Think of the entire process as a pipe; the amount of water that flows through the pipe is determined by the narrowest part-Process Designed cycle time (designed CT): designed cycle time = 1/ process capacity -Measures how fast can a product be “pop up” from the process- this will be equal to the task time for process