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02) Krajewski, Lee J.; Ritzman, Larry P. & Malhotra, Manoj K. (2005). "Process Analysis" enOperations Management. USA: Prentice Hall, pp. 129 - 190.

PART II DESIGNING AND IMPROVING PROCESSESCHAPTER0 4Process Analysis

PTER OUTLINE

OM GEOA SYSTEMATIC APPROACHIdentify Opportunities Define Scope Document Precess Evaluate Performance Redesjgn Process Implement Changeso Managerial Practice '4.1 Process Analysisat WorkDOCUMENTING THE PROCESSFlowchartsService BlueprintsProcess ChartsEVALUATING PERFORMANCEData Analysts Toots

Data SnoopingSlmulatlonREDESIGNING THE PROCESS A QuestlonlngAttitudeBenchmarkingo Managerial Practice ...2 Benchmarking toImprove a Sales PnxessMANAGING PROCESSESPROCESS ANALYSIS ACROSS THE ORGANIZATIONChopter H1'gtiltghts Student CD-ROM and Internet Resouf(tS l2000 as a new toint venture. DTCC (\\ ww.drcc.corn] is an ,nstitut.ion set up and owned by fimancbl services firms tosettle their trades. A vnic or ThomsonFinanciat [www -, rhomson.corn} orig)-nally marketed this posurade, presertle- rnem service in the late 1980s as a money saver for institutional investors.The dozens of scribbled faxes. telexes, and phone caUs made for the typical trade cost from $10 to $12, but Thomson's process allowed it to ch:irge only 20 cents to $I per trade--and inve:stmcnt managers essentialfy got the

service free. Its behlndthe.scenes ser- vice was an improvement over previous processes for making trades. but Figure4'. I shows that it was still a tangle of communications between brokers (such as Goldman Sachs}.big investors (such asRoya) London Asset Management). and banks (such as the Deutsche Bank) every time a trade was placed. It took three to five days to settle a trade in the United States, when money and securities offl. cially changedhands.But every process can be improved, in part by c.ritically analy:tlng the current process for improvement possibilities. Omgeo made a major impro ..-erncnt over the old process,with the goal being able co complete the whole process in potcnti;llly just one day.A key factor co the new process was the Internet and new information technology solutions. With the revised process, steps I through 3 were done the same way. However steps 41 chrough 9 were replaced by entering all of the informa tion into a central database that the bro ker, investment manager. and custodian banks all have access to in real time (e.g.. cemral matching). The revised process ended the need to tack message after message onto a cumbersome file. It cut

some of the grinding monotony of pro cessing trades and saved employees time. le also saved vast amounts of money by reducing human errors. Royal London Asset Management, currently live on Omgeo Central Trade Manager (CTM). is >ble to move a trade throughto step 8 (setdcmenc notification) in 3hours. Before, when using Omgeo's o1dprocess. it took 20 hours co move one trade that far along the trade cycle. Now, they have 17 extra hours co iden- tify and fix trade errors and get chemdone on the sameday.Centr11I trade matching information technology replaces many of the steps chat were performed sequentially. With central rnatehing, the allocations from the institutional investment manes t.H1:1.:1iv'"ly. a...~uring that1.h~1n~t~ urc implemented :t1HI :111 infn1,tnu.:rurc ,,. wr Fur n1.1ki11~ rorninual processimprovcnwnts. PnK"t'V- hurnnn resources. which connects the ficn)'' prnCC)'>\') with the people \\hO perform chem hy hirin~ and training people with the 1'le(C'''"'J)'vkill, nud knowledge and hy scrring joh ~o:tl'l>.> management information systems, \\hit.:h marketing, which helps manage core pn..Celo:.t:.. such ::t'> ncvv -crvice/prodecr dcvcl-opment and the external customer interface, and ccnuecr-, with the order fulfill- rncnt precess.> operation, which desij!.n and mnnn~cs rhc order fulfillrncur proc.t'-. .. for both ccr-vice pro,,id~r..; and manufacrurers and .-et.'.ki. seamless connet.(iOn$ with ocher tore and supporung processes rn the frrm.

0 A SYSTEMATIC APPROACHMatenal compilado con r.nes acad6mlcos,se prohibe su repro, cnrcrpri'.'IC fl'SOUr to ch3nging c-ondi1io1u. ::111:TIFV OPPOR 1 UNIT IF.SIn order co idennry cpporuuunev, parnculnr attention n1ust be given to the lour core processes: supplier rclntion ...hip. new scrvicc/producr development, order fulfrllnu-nr, and customer rclarionshrp. l-nch of rhe-,e proccsw-, and ebc subprocesses nested within thcn1,., re i11\ olvcd in d ~:..l: l1: ll ;.' ,k: ' C'lC'l\.l"'.(,, urp v.~w.:1h

nri~111:i1in~ rhc su~o11'.') Juh: Tl1L' proc c ....;, scope can he fCHl narrow or too broad. (.11111ting it 10 ju':>t a small !-uhpro(('.,., ..hould match the pro..:e.:."'" '\..:orr. For a small 11(.':..Htl 11rocc'.lo in\oh iug nnl:-- one employee, pcrhar 1h.: employee i" asked tn n(_k.,1g11 tlu- pru ..c.;.; hcrsclt. Staff ~p.:d:il i'>l'> L:'l11 sometimes provide her wtrh rime .,c.1nd~1rd v, current f)('tlonn.u1rC J~t.1ilcd bl'l'.1J..do\vH l~l\.l'll in .11,1hll.l)u1.:11n1cnt~HJ01t tll"''' nH)\'.l(ti\.'Ul,lr L'11lph~\'ol" to ill(' ~0111petiti\1. priori11t, uf lrnvcillp., or extraneous Ste-pc;.1 lu-v c;.111 Ix nships hc.:nvc..'l'I\ .i.:1iv1c1c!I .u1tl ..lll1fi1..~.1nt .ll!u1.:uion., of r( or~~u1i/.,acic.1n c.l1,1rl'>and decrviou tr('t'~) urc ~n1;trtl)r.1\v [www.cmartdr aw.com}, Micr usoft visio[ '~'\\1\v.micro!lor1.t:om/offi~c/vil>ioj, and ,\1 ilro~r;l fx { www.adainc.corn/soft wore). ()ft(.'n, fn.t.. dO\\'lllo.1d' .rrv available at -.ui.:h ...Itc-, on a tr,til h.1si'). I'or example, a link j, provided on your (:f).l{(),\1 to 'i1nartl)r~l\\',[ lo\\'c;h::irt., 1.:,1n he crcarcd for vcvcrul k,cl, in the: or~.1ni;r:uion. For cvampk, at the~tr:\R'J.1.i" level, th:.~ could l>IH>\\' thi. .. c1rc. procl.'1>:,._., aud their li11k;,1~t...,, ~uc:h as in 1-i)!un. I .J .. .\t 1h1~ level, the flc1\\cl1.\rc' would not have much detail: however, they \\'Ot1 Id grvc.1 hird':) eye view ot the overall bu-.int~,. just h.tcnti(~ ing what j;,, a cure process b often helpful. Let u' now turn to the. proves- level, where \\'C.' J;

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enreced 3dJU$led scheduled ~ lmanufac::turet('P' JfCplJtC'd in the dc1'>.1rrtnen1 row where rht)' .\r~ performed. Thi' "l1,1r1FIGURE 4.6 Servi(,e Blueprint for Automobile Repair (Created with SmartOr.tw)servke visible to customer Service not visible to customerRopr MhOrliedllCustomer droPs . Med'lanic mates . 0 ls.c.u.s..s.n..e.e.ded . Check pi:wts -~ ~ ' .P8"sol'lcer . custaner . a"91W:lltty~ep.iW not 11.AhOritPer10rm YIOl'k''-Parts nae J. J.0-Port - - ln$pedttest and f-lrepelr Corredivenec"e"s"s"erycOfrected wxk -Customer ~ ~ Rep.cir comi*{edepw13 v.lh cor . COiied- , Nctity custcmer Perbm Ports alicol to the 5UCOCSS of the s:erviOe Polrcs at lhiet'l 1l!lilute is most oten e)q:)el'ienced$wt(e; j, l.. Hci.kfltt J.l'ld R.Anthony,"Nott on Se-rYkt M3pping," Harvard Busini!n Sc."aol Pi..bl1$hil'lg.No. 69)~S.Wintcr 199)1199~. p. S.1-~e'ul';ptc..r11:1I ('U..tomcrs.The process begins with a .. ,111 [rom a bank :..._tkin,; thi:-. M-nk._ h) th c 1..011,ultingcompany, There arc three main "tcp.; in the ovcr.tll prc ...c.-.,,I. The hank c..011t.11.:t:-. co 1 ht: .._on-.ulcin~ .:01n1)~ln~ and thl.') '~f~t. on the conuuct.2. The consuhing COlllJ):lO)' ptrfonnc; chc. uwcmorv cvalu.uioo on the virc of thecorup.iny i. ,Ji,ipt.'' 111~C('Contrt'l(la11eeo~-----~o~orProcess visible to companyeankc:111:s consoltinc companyf011tMcecontract not a1reedu~onCOn91J~.ng compa.."lyand bank nel)O~~tton1rac1Con~Ullllf'9~!O'Y.K1' ~ Nl(l 1----~1~"1~h.crm1111..,...On-s1:e'll$llby a11~a'1er a1'1(1M.lncial 01nat~stl~m1in.t!1onot110JttlCcncluSIOl'l O(c'"ne nt p()jttacistical rcrmc, the: central tendency ,11111 d1 .. percion of the darn} ()frcn rhc mean of the data b indicated on the hiMo~ra111. Abar chart Is a series of hru ... reprcscnring the [rcqucncy of occurrence of data t5o in a w:1.y h1.; cn1plu)'~:.' ,!( ~ ~'' fl r11.l11rt t It 1 l"t_\,. .1' d f, tf''l'iflf'l ..l:!'histogram ,\. ,1u-'10- in:. hn 1 r.1cLtl ff"' :~1..-.,1: ; C''".'I" 1r1.~~l',tll"', ~1-,........l. l~' ll"lr 1i''1J."'. ~ ~~~1b1C- I."! orir r:.r. l'.JJr:1< t.n-.:(_ :1 ...:.t:i.,l::J '.c. . 11;.';h( I'. 'illr:il t.nd.. ;uy tl,.d ~:>c1 ;;~,1 -'the c.t.!).bar (hart :\ ,,. '> "'' 11ll'I'- :'''11 ~. l!F- I 4\ f111r) ~"'\oin:l-"1,1nP 'I(" (":f d.'.l l ~h 1r.-.-1~ :1r'"'l"'il'i1..,:=o> ~ 1 'J'f"~-v: rr b;Pareto chart A::: 11 C" l ,...,\"hl(i" \l-( i l~t\"" . : ;': :t'.C~ 1;,d:_'( 1: ch.1rr. both crc.1ti:;-.l \\'1th (l~l E-.:plorcr'sIf.IT. J1,1rrto, .111d / .iur ('J1c1rts ~OIV\'I'.'11H:v f"n.'~'I\( 1hC tlat;.l 111 j W:I.~ Char ~hOWS \\1h1Ch 0:011\pl.unt~an: ttit more prevalent (the vnal fc;w). Tbc-e dl~tt., -'H' -ct up for .- 4u.1lit, n1~11ic. hut }OUcau reformat theru for other .. ycc-or-no" nlctri.:s. ju"f .:li(L. on "'11nrruh,\'.t .. 1w1.1~ u11th:r du -prcad- sheet's 1t-.ol$ menu, and then make vuur revision v. Another approach '' 10 t:'t.:;11v ~f)ur own sprc:uh.1H.'l'I"' from wrarch. ~Ion: advanced ltOfc\\':H(' with poiut-and-click iurcrfacc-, iuchulc,\11ni1:1 h (www.m in ir ab.com/i ndcx. h tm ) . \.\~ (\VV.'\V. 'a:. .com/rnd/app/ qr .h [01 I). and~1i1.roo;,oft Visic1 (www.rnicrosofr.corn/office/visio).1-~e'uMaterial compilado con fines acad6mlcos,se prohibe su rel);. j11 the r:.. l;'lur.1111. Fir~1. ::.low wrvicc , ... ill lie;alldrc-.scJ br training the cxi,1inA .. 1;df . u.Jdin~ another wrvcr; and in111ro\lint:. th'I. fooJ JHCp:1r.1-tion process. Rcmovmg some decorative, hut orherwiw unnC"-'('"'lt}. furnih1rt" f11)11\ chl~ Jinin~area and )paring the tables bcucr will !>nlvc the rroh1cn1 with cmmpcd rable-, The Parcro 1.h:"l(C..ho\\') that these t\\'o problems. if rocnfwd, will .:\l.'~(1\111t for almost 7(l pt.:I cft.JO fnctor i" causing a particular quality problem. A scaner diagram. which is a plot of two variables .;"'iawi11g wt"Pl!iE" .. ther ,1 t: variables showing whether they Jn" related, can be u~cd ro verify or negate the snspr-'t't~ifiL" causes a .. "rtbv." \'(rhcn con-rruct-in~ and u~ing a cause-and-effect dingrurn, an an.1ly~t identifies all the: major carcgnric, of potc..1ni.tl causcv for du. problem. for example. thC'SC' 111ight he pcrsonucl, machmcs, materials, and procrv-cc. Por each major category, the analyst lists all the: likc:ly cauvev of the perfonnancc g.1p. for c x.unplc, under personnel nnglu be listed "l.1< k of train-1111-;," "poor communication, .. aod "absenteeism." Brainsrormiru; helps the analyst identify and properly t:las,ify all $USpC..:t1..~. The analyst then S}'SttlTIti14;.11c\ the: cnu ..t\ listed on the di;.tj!_r,11n for each major category, updating the chart .-.~ new -.:au~.; become Jpp;.1rcnt. 1 he proccs, of t:o1l\ttu1..1i11g a cause-and-effect di.1r:;1.1n C:.111'> tn:'l.11.1t"tllCIH and worker attention to the pri1n.lt)' f.tCtOf~ affcc:rin,I!. prod uct or service quality. Example 4.2 dcmousrearc-, th1: U\(' of a cause-and-cffccr diagrnm hr au airline.Analysis of Flight Departure DelaysI he opcrunons manager for Checker 81):ird .:\irl1nl"'i at Pon Colurubu .. lnternationa l Airport noticed :in in~r~.1 .. :: in the n111nh1.f ni delayed fli~ht departures.SOLUTION1t1 :tn.tl}tl' ,\II tbl' pu..'i1hlc ..:.n1"c~ of rhar problem, he 101\..,truncJ :1 c.ruvc-aud-cffcct dtagrarn, shewn in F1t-:urt> 4.11. l hc 1ua111 prohlt1n, e-. '''th hi" 'it:i.tf. ~ind hltt," which archt:) onJ n1.1n~1ln:1I 1.1)ntn1I. "W.\ t f:'l' 'iu ..rn:1tJ c:111-;C'..,, WC'f(' uttn11ticd (or l'at:h 11u1c)f c. Jlcgory.DECISION POINT T11t c1pcr,111on" nK1n.1-r. h.\ .. ill~ J F,onll on'~U'> pt,.:tnt th~H nttl\T o( die: tlip,lu dd.1).. 'I\ l'f(' pl(' arrive. arthe door, ho" lonp, the- t~JIC'r t.~ean cvcle time 11 041 FIGURE 4.14Simulatlon Results of Bank(Modeled with SimQuick)-The numhces ,ho\..-n .11L' :l\'('f:lgL'" ;:i(rn" thl .30 si1nukuio11,. 'Ihe service tevel for [)oor tcllc th thar 'JO percent of {hl: sonukucd cu..romcrs who urrived :H rhe bank were able to )!"'t into Lin ... (hence I fJ percent found line full and immediately left). The mean inventory for l 111t tells u" rh:H there were. 011 ~1\l'rn~e. 4.47 simulated cusromerv sraud- inj! in line. The mean (}'..:k rime tells uv rh:u our si111ulJtL'J custom ...-r... waited :.111 aver-:.1~4' of 11.04 minutes in line.\\'hen\\(' run the n1'1dcl with two reflerc, \\C find chat the service level increases[O 1()0 percent, the mean invcnrorv in l.iue decreases to 0 .. \7 ..:uo;ronhr,, and rhc mean l vclc ri1nt drops to u. i I minutes. All dramaeic i1npn.J' cmcnrs. \'(!t1l.:'n we run the one-rcllcr model wrth the fasrcr check-rending machine wc fiud th-tr the service level i' 97 percent, the n11.:,u1 inventor)' in I int(c) Throughput time>>t;IMlltlo'IJ~"1".'~"tttUU..... 111~7'.0l'tlttf>U , "~.,1"1_'t'M'Jlt~llt.. ,.,.,._ ,..... !In---' ..._.,,~..~ .,... ....,.,..... ~ "'' "".l...~........U..;;--,..,~. ~~b REDESIGNING THE PROCESS:\ doctor pinpoints an illncvs .1ftt or :r.Jtir111. t-.stahli-sh ~oal~ and obtain the support of 1n:tn~~~rs who must providc rhe re..ourccs fur :1cron1plishinj! the ~o,1~~-4. AtluJn. l)e\clop cro-s-funcuonal tCllll" of thu~e UHht alrcctcd hy the chungec, develop ucnon plans and team prtCl:lf}' illtCrC'it. ()UC \VJ)' of hcnc;h~1n.trk1n~ io; :'1.l\l.':1)'11 ,1,:lil:iblc-rra..:kin~ the ptrforn1aot.:e uf :111rofcss O\'Cr 1in1e.tJ MANAGING PROCESSESPn.>c:1.~s1.."S rnu ..r he 1l'ln.11~1geJ. fJilurc to do ...o 1-. failure to effccti\'clv cn.1oagc clll husi nt''s. hnplen1c1tti1tA :'I h"'1.:B..1'' In~ ..~t~tl'lt.1 l.chtio11, 1119). pr. 12.b- I';.}.Material ccmptaoo con fine$ acaoemlcos,se prohibe su repeodccccntotal o parcrar sin ta autori?aci6nde cada autoe.Matenal compi1ado oon fine$ ac.ad6rnlcoo,se prohibe su reproducct6n total o parcial $i1t la autorizacl6n de cada autor..l-....,..~...,-....U...,,..~.(.HAl>TF.R 4 Proc~~~ :\n;il}~b 153MANAGERIAL PRACTICE 4.l- Be:N~HMARKING TO 1MPROV0E A SALES PROCESS ,.1-~e'u.~.erox {www.xcr ox.com] has an almost religious belief in benchmarking processes and shtaring best pracdces. Benchmarking means identifying who isbest at something (in your company, in your industry. or in the world). not by guesswork or reputation but by the nurn- bers. Sharing best practices means identifying who is doing the process best and then adapting their ideas to your' own operations.Xerox applles benchmarking noc only to the cost side of the ledger but also to the revenue side. Head- quartered in Dublin, Ireland, Xerox Europe, a I 00 percent- owned subsidiary of Xerox Corporation. sells more thanX$S.3 billionworth of products and services annually, mosdy in Europe. A team was formed. charged with learning where sales performance was best for different products and how these results were achieved.The team consisted of a couple of dozen people from the sales, service, and administrative staffs, of whom a thir'dWOn) re ..Jot G1ri11g tlJe l)esigu 1'e"111s and Process Ant1/y.;t:, a Clear Charter: and Then Holdi11J.! Them Acanmtabie. Does managemenr 'l't expectanone for change and 1nai11t.tin pressure for' rt-.ult-.? Ooc~ it allow paralysis in process improve- mcnr efl-0rr;; hy requrriug excessive ;.1nnlysi-,?4. Not S:u1s(1td Unhs'), Fundamental 'R1:ugi111..tri11g- 01.111gr~ Arc Atadi..'. I; rad-ic::il change the cxpecraeion ar rhc expense of mcrcmcnral ~h._1n~t._? If so. the cumulative effect of many small improvements i~ lost. Pro( the intelligent use of .. uch tccdb.ick.b PROCESS ANALYSIS ACROSS THE ORGANIZATIONAll pane of an orgauization need to he- 1.:0111.:cr"n..:-d abour proce .. , an,11~..,j, si1npl)' because 1ht'}' art' doing work, and process :tn.tly-.ii; focu1;c._ on how work is ;1 .111.,I .;tr.Hcf.i:: j .... uc ... 1 h..: foul' core pro.;csscs are'\1pplirr rc:bru111.,hip .. ., ru:w ~r\ke/produlC dc,clnpmcnc.or._kr tulfiU111cru . uHl (lhtorner l'tkitionshifl~. ~tr:.uc:~1c.i ....uc:. ith.luJt' ~~ hrtwccn ~n111p~ci1i\'t' priunticIR)! rhc \\'J)' to pro~'l.')l> rlJc;.,i):n it.k.1...........,.T.... .~. ~CHAPTER 4 PH> ro fl.'d,i~o ;' 1)r111,.'1.....-, hq.:!,in~with .1 qucseioo- int~llliCU ()\'1 ....xptorcr "lutnr v. (.)~l t.xplorcr 1.:11nt:ii11~ two tutorsprt .h!.,ht'l'ts th.u will l1dr > 11u learn ahc)UI pn>t.'t:S'>..-hartv and I'an ro ch.mv. Su: ch:1ptcr +in rhc (.)~1 Explorer menu, ~l ..... :tl~I) 1hi. IW(l Tutor Ex.> 0\1 f" :\ ,,f l1u1llli11~ ... in1uh1tion nlt.)Jci.;lor pri)f.-1. """" h~ >q1l..iu~ 1hruu~h f'(atnpk I in \in1Qt1i\k:l'ru ,.... ,..,11Jui/,1t101J 1111/; I \'(o.f. Thie; "i1nplc h.u1k prou.'' I t~iro jh11uchow It> ai.1..ounr fof lc:;1rnint eff((IS whfn C'irinMtin~n-quirem('nt'i for new or rc-\'i,.cd proa..:;c;c:-..> Supplement H. "~lc:.ti>urinp. (lutput RJtc~." lx.un ,lhout se~cr:il tools (01 esrin13tin~ the rime it tjk1.s for C'adl q~p in J l'f()('('SS.> Supplement J ... FlnJncial .;\nal)sis." I Sclf~Srudy Qui1t.cs. Sec rhc "'>mpcnJiun1 of true or t,1t~.1nuhipk 1..hoice .. ond cssJ.y qut~rions 1hat )?.t\'t' yuu fr ln th, Ncw'S. Sexrhe orudcs rh:u Jpply u1 thi .. dupctr.> lnrcrnct l-.xcrc:iscs. Tr" out the exi:'ri.i:. fr11.ili11(')>,KEY TERMSl:i:ir ('h~1rt J .t.lOow.:h;:in 116proce~schan 141b(m:hnl.\rkin~ I~I~rJphs 145prOt."C~S .,imulation 148brain-;1oroliu~ W'i>!>i11n 151hi ..1ogr:im 14 lscatter diJv,ram 144cau.;('JnJ-4.'ffi.ct Ji.l,:1.r~11n I 4Sdlt'I, th~ :.,,.tem c.hclLS i( ... uqc1n11.r~ have .m exi~rin~ ,,.;col1nr nr not. C1hU)111c1s choose I if tlw~ have a11 t":-.i,ti111~ ;1..:1.ou11t or chcio">C' 2 if rhcvwaur 10 npl'n n new account. (. ustoruers w.j il (11r the :...:1 vice rcprewntativc tu open ,1 new accoum 1t' t1ll'r choos, ;u1J o ~r .. 1.l:ali,.t.J u1s1111nC'r rcprcwntative fOt bocks Hf ruu ...IC f.l)s prck, Up thl' phone lO ~l'l the ortl1.r J1,t:1iJ,, 1 llll>{llllWh choose 10 c mccl an ore.Irr, then the,.. w.ut {or the- automncd ''""pon,..:. f\y c:1Ht;1inl~ ibc order code v1t1 phone, customers Coln c.1n..-d the order. Thi: automated '>''tcn1 '1)' the fltn\c of thhawn in the upp(r ri~IH lr.1nd 1..orn1..r ll( 1he l'roc.'(""' .. h:1r1.I ht ci1ncs jdd up (n 2~ rninutc:!i., whu::h do1..'!. lltH ;.11!0" 1nu,h rtllll j,,r t'ft(u 1i 1hc 29n1inutcj!U;ir;inrce 1s 10 h1: 1nc:t :ind 1hc 1utc::hJ11ic tr~\rn. If the: filu:rs, ar...- !llo\'('d lt"l the pit, 1 copy n( the rcfccC'lll'.C' n1.11trial mull:1ho ht' pl.11.:eJ i11 tht pit. n1c pit \viii h:nc to he nr~ni?.cd ant.I \\'t:ll lii.:,hted.llo>(o). /;nd'iel(sj9 0.40 x Check 1;1., """'l>ol(o)10 0.60 50.0 x C&tN 1;1u.u re !1Mc9 M11 4.20 x PM01m undefCt\';l(iun ;'11\J purchase power from'UJ)plitr .. rb.u use the d1..Jnri>c hid.; and rcchnologv,HoWC\'CI',HEC is already sufkrin~ Iroeu . ;\f ft)ur pun1rs .111J " hcK11h ;\twhich :tn ~uc11d:tn1 re1.1.ivc" pa~1ne111 for rht ~~oli111.:. At1lc.'ith('r t.uir.uu iv ur,n ll"l \ J.1~ ... .- )C.ir, I 0 hull!'\ :tJ:\Y.a. Con1rkci: tht \Hlllll\.1ry hop ri,.;hl) portion ot 1hchart.flGUQ4.20-b. \\.'h;n j, the 1utJI labor ..,o,( :'l'>\CJ1.1.11cd with thern)1,_('').\?c. I low c:.111 thi~?14. ( irt1h1well, Inc .. ., mnnufacturcr CJ.TrC'f plut for the!OC' cbta.b. h tht'rt:' ;1 rd:11i111hhi1) h4"t\\t: rd:UHl to production-ruu'J/~ An t:tlltt. nf fo1e P1.}ond 1u.u1.g1.ri.:ll t for 1ht. rime rcquued f1r the various :Kt1.,1t1(:S 111 v-olvcd 111 the priti fer impro\ in~ the~ha1 illj!. process. 1 Do not 1ry 111 cvaluare die id~.1 ..Dr;1" a l1.trN01.h.trl to idlo11{~ which tn>c oi dlf1.\1u1:1n.tp,~n1nH ...ht>ulJ aucrupt to eliminate l1r"JL17. \1an.ti.:,1.'nk11t ot .1 ..h.11npo(1 l~nlm~t:11ttp.111y inlrv1hkt"J a uov 13.5c,lllh.'.t' pack and used :ut C',i,tinl! uutchiuc -, with 'J>OIUC 010(,11(11..ll!Olh, tu fill i1 'f,, mt.J:1,,.ifk:uio11?Advanced Problem18. Tho prol>f~o1 ..hocld I~ ..olvcd av .111.a111 excro-c.~h:h111~ i'> :i pn~1..,., ch.u most mcu pcrfonn vavh1n11rnin~. ,\"sun1c ch.n the process l'x)tin~ at rhc hath- room -.u1k \\ ith the .. haver ":.lk1n): ha~. ' Icetl tc\ theuntil the ~roup hav t.u111fHl ....t.l '1" co1npktC' .1 list .,, pchMhk. ()tllCT\\ i~. iud1!1ncnt will lilo1.:k ~ccJU\'U~19. ~ (.),\1[xplorcr1\1 ( ount-t lo1np:1n~. :1 t.U'>tnm 1n:111ufo.-ttuur o( Jll'intt.:d i. ,\, ("~uuicr\ qualit)' a ..,ur t11l ..'\' n~.1n.1.~cr, you 31C' n.:...pun .. 1hlr for m.1kinp. J pre'>CO(;'.\Uun (u m:in.tge"lnci'nt vn qu,1lir" prohknlf; ,\t th..: her.inning cf l'.1t.h n101nh. Your as.-;ist.1nl h.1~ 311~1l>1cd th,cr;ai.;~I\ tn1rrCrJr.1t100E hnprop ~4' ifC-n111p1;r,1r11IlI --- J '11"QUESTIONSI, \'\:h.11 pt:r )ot:rvi.ct?ISIMULATION EXERCISESThc-c v1nu1bri11n 1,,'\'.lr(1-.1.;, require rhe ti-.'!' o( the $i111(iui1:k and f,1tnJ LT siruulariou r11cl:a~cs.!>1:nQu..:l-. i' (111 rhc )tud1,,n1 ('J).R()\1 rb.u i .. r:1d.. :11~1,,..,I '"ith cvvrv 01,,'\\ t.1Jl) of the tcxrbock.l-xrcud I.I 1,. an opnou.tl :-.i111ul.uion p.h.l.:>1}~1 ch.u your in,Hunor m.y 111 10:1r nor have crdc-cd.I. ..\ 11lJll1tfolhiring cell cin"i'>r~ c1( fi \\ur&:..,r:1.111)n ... Raw nl,lft:riJI" arc taken from in.,cnti>t)md prK1c-J 1h1ouy.h 1h1.: .:di m t1 (1xLd route, !>l.1rrin~ wi1h workvranun I and endingWith worksr.trion fl, The ftlll'>ht:J r1ocfut1 i-. (hen itot1:J 10 an inH.'lllOf~' J\;1.lll;l~('ITI('O(h3" lh(' opriou (If .1 ....i~nin~ 2. 1, Ill h WIHl..lt~ Ill dw cell. For cxamplc , if l workers ;ar(' in rhe cell, one would be ,,,,i~n1d ro \\orl.....Iwo hl.11'1 l;!.((l~, .1 cbicken hur riro grunde. e:ir re ..taurant rhat offers a reason-t for f.'rid.ty and!-1\etUlllfll;lCY of 1hc- T4.)1ne of chc.- hlols ior pn)L'l''" :u1;1I~ ''' lI ;i , ....,., Thl' -.iru.n1on ,n joS\ts.)tmra: 1 llt\ ,,,,,. w:h )'t\.'l"'"''d b;. l~rr \ll~k. Uu'(ll\ ( olk,:'o :t':.1 b:i~1, A The ''''ti< ol~_)11.i!1ty ,).,/11l1)1t, lhnr l~idt:~. II : IrwinP((>fr,.;,11n1:ll Pul9'hin:~. J~l.l.l~:11in,.t. \X J:J\1,1rJ c. ''lmpr1n crncnr of Qu1li1} ,111d Produ..t1\ itr Tl1rnn~h A....c101l h~ \ 1.1naf~1n1 ru," ,. 1liH11.1i P101l1tlli1 itv ({,111.1, \Ill. I, rtu. ) i\~'mHr l'JS 1-1 "'~1), pp. 11-22.Uli,, ( hn,1i;m .\I.. JnJ lx.1 A. P. Tonkin, .. ~ 1.\hll'( l.'i.(;r;h.1r1, \hlrlllot .\, ,. nw Ruad IU flir.h l\rf11nn.111i,,111l.1t101t l('ll+11 l:y..t'/.2d qi. l rrwr ~.ultll Ri\11, '.'.J: l'n111iu: I Iall, !)l4.)..;u/.~'11h~tdt. Jun IC. .nnl l>uu~l:h >... '.'1111ith. 1 h: Dis,;1pli1k. ofh.111"" //,;n ,,,,/ 011!1!1(''* Rnuu ( \l,11\h-:\ pril I 'l'J l),fp.111-l!il.f..111 ~111,111 lhuud.1,~. ).111,. "Tl'\hnulni:v, l'h.111t,11, ~11J S.nu l..,!m1li1\. 111/t r1.11t1n,,/ J)tlYl,,d o/ \enin: l1hit1stry\l.111.:.~('IJJ('lll, \'ol. !. 1lu.) (19'/l I, pp. 47-,'-I.liH:~Olllh\'('('cr\t1.:c PusiuonnA Throu.j!h ~trltl tur.11Ch:inr.~.. /t~J111.tl of 1\L1rl.1'11"J!. \'(II 'i I. no. I 119~"' ;.pp. l4-4 l"\\'hen th..: (,om~ (;c1s l\ou~h. Uodn~ (;iun.4. how to ('(C.Hc :\ cimplc stmulanon model \\itli an fxcel sprc.rdslu ct.5. rhe advanced 1..1p:ih1lllit-s ti( !>imQui(.k and Extend.SUPPLEMENTB.l...~......,.~....U.~.~~irnul:ttion i"lc J.-: e su ~P... the products an :.1.1Jhtr)l,1.-. tk1n;llll' i'i n)l',l"Ul'l'tl in n1:.11.hin4.' hol1-''.J tv ct be: n.~ !:'-'~tee in :1 sin111l:nion ~:.>n he g.cncr.ueJ in :10 unhi:1sed \V:l)' i( r.111do1n ll1unhcrsJre ~1-.~ip.neJ tu the ~venn. in the ...:Hile proroninn a~ their prolJ:1bili1y of o-.."urn.:nc ... . \X't cx~ct l dc1nand of 200 hour:; 5 pcrccrH of the ti1n('. If \\'t' h.ivt 100 r~nhlcun nun1hcrs t00-99), \\'C i,.:,111 ,t!t::.i~n 5 uu1nhers (or 5 pen ..t.nt oi then1J co tht ('\'('TH "2.0n hour:-i d('O\:tndtd. Thu,, \\C C.Hl Jc;;Sit-'.tl tht' n11tnh~r' 00-04 to rJ1nr C.'\'C.'111. If \\'C r.11H.lomly c.:hou~ 11un1bct:o. in 1ht: r:tnv,t of 00-99 t'rlouj.;h tin1c ... 5 p1..r ...c.1tt of 1hl tin11,: tht.')' \\ill fall in the r:ingc of 00-01. Sinul.trl). \.\.'C c:in ;:ic;;s.1g1l the 11111nhcr:-. lJ )-1 O. or (, p1,:rn.. n1 of the. nu1nhcrs. ro the e'C'1l1 "25l) hour~ dt'1Handcd." l11 l':1hlc: li. I ,,.,. ..hu\v tht allot:~1tion ofthe 100 r:'lndon1 n11n1hcrs co rhc dcrn:J1lll cvc111c;; i11 the :;.11ne proportion .1~ their proh.Jbilit>' of oi.:currence. \X'e ~in1ilJrly ;1~~ip.nt'd 1~11H.kun nutnhc.r!er).111 i\ppc.nd1x 2). lk-t.lU)t rc1w, and Sd on .\te{' 2. Find the rand1nnnu1nber intcr~~ll for pr11rd 1hc prc1Cr week. Docs th.lt menu th~lf we chuuld nor add the maclunc .111d worker? Before ~)O~\\l.'l'in~. Ice ll') look at 'f.ihlc It' which 'ho'v' the rc-ults of a 1,000-uc!k -Imutarion for each .:iltcrnJ rive. The. 1.0)lS {hi~hli!-!.htl"J in hhu:) arc quire difrcrcnr from those of the 20\vti:k xirn-ulatinn-. Xow rhc v,iving ... arc C.')ti1nati.'J 111 bl" S 1.XS I. Sil - SI.I )9.50 = 5692 ~111u~h1i111c th;lr rh1. ~1\'i. rJ.~l' rl':.uhs for pcrforn11ntc llll'J,UrL~ rc1nai11 \'t1tl!>.taoc. In Fisurc4.15.: .1~hi:.\ in}! stl..".ldy "l't., Til [rorn 0 tu I, rather than the: two-digit imcger numbers frnlll 0 through l'9 ill l:1hle n.1. I( YOU attempt to replicate figure It I. or reopen :11) Excel fill' that \V:\:. crented earlier and :-.;1\'Cd, vun will see :1 Jifftrt:'nl :,~t of random numbers. To use rhe same exact set or stre-un o( random numbers, such as for cxperimcurs thar t..(Ullp.trL' the etlecriv('ness ot' diftercnt policiev, you should fret'~~rhL random numbers, ~i,..,r, sclecr with your mouse rhc lCll~ hot-i.linp. rhe random numbersthat )OU \\lish 1101.en. For evnmplc. cover r\.1:j12 in Fi~urL' B.I. >ILxt, LliLk on Edit/C',c>P>' in till" menu :it rhe top of your sprc.rdsheer. Click Ot''tl on Fdu/l'nsrc S('lial and Ch4>~>~ ... the Values option. \'(.lhcn you click on 'I 'l ti:t'I\ (' :p1 '.l :"'.}l) n '~1: r 1n; 'loq,l tf,'~ (' '~ 0 4:-(' fl~~H 'ltrr; (. ~"( ~'ti J.\I! I.. t~~-t- j S.JJ o.!t; I.. '.'l)) :: -:::t 0 .'~.:: en.~oU'\\ ':' ( ;1 '.; 0 I.. l :~ I) ;r.,:.; ur1n '" vlfAI ll>(I funcrion ....Matenal comJ)llado con fines acad6mlCO$,se prohibe su re!)Jbillt)' d1~tnbl1tinn and mean of rhc wcekf -salcsSOLUTIONFieure H.2 ~i1nul.Hes SO weeks oi 'l-:t1.: .. at Bet-tC.:u . ~ lollgt:r run length, ~A) 500 or I ,(JOO weeks, would be prudent, hur here we k1..:p it '>tn~1U ior Ji:n'"uc;(r;nic,n purpo...e\, The bcuom nghr ()f (he$flf(';Jc,hhC'lt !>hO\\'i th,H the r S57.600 per week. 1 IH.diiotrihunon of the simukned wc:~kl ... JL1n:10J i .. 111 ... .oli ..';:. ~rt-,,. ' !v.- ',~ ....,...~-.---,---,, - "~.----'---"---'IIGnt1a:e 111t1:lem rtJmi,t:! ior cells lt;tt55w:lllhe\ ' ,.i. ''. t.,r_;.i:..:.!..1.!.~'!'.......::~~.l ~ 4 ., .. ..- I; vs1:, ' I eew' ( ~'..(! I 1'1 \-'i. )'"'"iformula =f\Ar;oo.Er:tt=A.OOKIJPl,HS,SCS6 $0S11,?J n:Q'1:1)11. The lower r.ul~!t' ot cumulative proh.:ihilitil.'S is cakuhned ill Hunlxr'> with the llrr"'''flondint demand values, \'('t ...111 d111hi .. h;. 11:-111r. the VL ()OK\~P funcrion. WC' enter thr- fcu1nu1;1 .. VI ()()Kl1P1'H6.)( )6:'Sl>Sl a.2)" into l'1U ll\and COJ'I)' it through 17:1\5. \'\'uh this th.')00). Th(' .t\"t'r.1~c c.u ~.a1el is l.ikul.ucd in lt"ll J'6 11-.10~ the =:\Vl:llA(.l:(lh:l~S1 tunluon,.ind 1hc: a\crap.c rev,nuc in cdl.)56 uo;in14 the =A\'l-RA(;J'(j6:JS~J func1io11. ~oh rh.u l'i~urt 1\.1on1)' '>hO\\'$ lh( (irst J 9 \\'(('Ji.~ Jlld th~ l~l\l J \\C:Ck~. lhio; 1..'.01Upft:!>'\Ulll l"S pO!>~ihlt U\iOp. lh1\X'1nduvt'/Frec:-.e P.'lncs op1ion. I l~rC'. the window i' fro1i:n up 1hruu1-th v.cd .. lI (1i 1hi:-1ll. dqx1ldin~ v11 ho\\' nu1ch }'nu \\'Jnc 10 dispbyFin3lly. 1hl' results 1:ihk is l'rl:iu.xl:lt 1he IO\\l.'r f,(1 porciun u( d1C' :.pr('Jthh..:c.1 HI \Un1111.1n:r'-'1he sinlul,11iun ourpul. B~ tn1erin~~ ch( FRFQlJF.~CY fu11c.ti1>n i11cv ,C'll~ CJ 7:( '..!.!. w.: '-'ll~ul.Hl' the n11n1h'-r of eth of rhc '.)i1nul:uiun :lrC ;iun1n.,ri1.i.J :tt the- hono1u of tl1, i..pr,:i(.Isheer. ()F J):lrticnl.tr i1ucrc(t :tee the v:tluC'~ of the dep-Cntknt .,,1ri.1hlt'' I ht .ncr.1f.('holJillA (.OSI 1, S41.9 I p~r \v'>uC:h :l'i V15U1\L Rt\SIC;, FORTR1\~. orr .. The .:tdV.:llll3J!,C.' of j.!C'ncr.11 purpo:.c ruog.ra1n1ning l,1n~u.1~(''i is rh:H rher :'lrt' .tvail~'1hlc ufl n1ost t.on1purcr S)"Hn,.,, ~pcci.11 si1nol:uion lan~uagt'' ~u~h :1' (;ps~.Sl\I~~('.IUl'I . tnd SI ,\f\.1, arc :il,c1 ;n;1ilabk. Tht:'ie l:111hU;t~C'S ~in1plify pro~r.11n1nin~ hci..,lU~ they h~n'e 111;11.roin ..crucrions for the (..Onu\1onl)' usc-d clc1ncn1s uf si1nul~uio11 lllC)tlcb. l'hc"c n1arroi11sCrlu:cio11s auc, k.1l of p'> Imm 8 A.~1. { in\cM tillll' to full} undcr'>rand rhc Extend 1nodeling fe:1rure' hecJu"c of if,.. lnl'!!'-' r.lngc of .,;;.1p,1bilitiMatenal conlpc1ado con fines ac.ad$mlcos, se prohibe su reproducc::iOn total o parclal sin la autoritacl6n de cada autor..l...~.....~....U.~..~EXAMPLE B.4Security Inspection at the Sharpville PlantTbe chlcf of sc.:un1~ nt the Sharpvillc rbnt of a l;'rt;(' S'rt.>U'"' hi>th fur vans. I anc U, where car v ,md v.111cles) !..8:'.!_jAve. wa~(mon.) [l~73 if '";-'"-{Max" length (velicle>) '79 jl!~;_r:Max. w~l (mh)r:.~-~~~..];~:.":::.',':::::.!,0.14"t2Total vet1clet inspectedGue1d utili2alion1e'ul.,l f PPI J .Vt F:"fr I~ S1111ul.ui()I\ 185DECISION Po1NT 1' t,lr1J~cn1cnt 11u1,t Illa kc some changes, sucb .l> acld1nf.! cap.tl.'.ity, redeogn-10~ the pr0\.'.1.'~... ch:tn}~llljt rhc prinrit}' rules, or srrc:ldin)l out the .\rriv.a] rime r.iu ..-m. The cur- rent prcce.... ,., run ..in~ '>i~n1IK.a1u employee frt1r Rul~cc t...l:t:-"('11, I !11111r-. t' ui\'(', such ;.h du." Ol;),in1utt1 11111nh~, i11 hue ;'1ld the efi.:.. r o( di.'>ruprion.; n can he cullecred. "unul~tlH)ll nto.i.k+, con .. 1~c u{ d ..ci:.:un variables tC.J.:_., number of '>lT"'er,), uucomrollul-le \lrt.1hlc:'.)o (c.g.. ioci- deuce ,,f n1.1,.hinl' hn. 11..~:\'f 4u\'~1irn1 ,upplc1nl'llt.> lncrntT f.' iour'> \lf (n1np,1ov fa._ ihtic,.KEY TERMSd. E\cr)' b\1tch of work \V11l (:Onl,HO lO unns. 1\ w.11nng 1111(' 1,f ':.:~e1jl l1~1h.ht"' will ht 111;iir1t:ti11cu-. run ...inu1ha1i.;011.,h The l''-J'K'd('d .:'IH"r.1~c ...-rup t11n1. rcr h.lh h i-,I 10.1 x l min)+ i0.1 x 2 1n1n) T 10.4 X 3 n1i1u 10.2 x 4 1nin) + (O. I x .) niin)I:-: 3 minutes or ISO -ccoucb Jll..'1 hatt.hlO. t x 5 :-..1nny t:.101101 hq.:111 to Jn week until n hos been completed hr :O.td l~'I: h.i1d1 2 of Table l\.11. Kor can ~1d 'I trt ~ 1)t.'\' h,1eo..h uunl Danny ~ ready le) ;itupt rlu- ~)rl''iou:- 11111:. Refer en hai...1, e, where \Id 1.0111pl~:lt'.,-T-ABLE B.4 SIMULATION RESULTS FOR MEL AND DANNYr~No.I 0:00 71Mel Danny4 min so 7 sec 5 min 10 sec 5:10 21 2min ~ 9 sec ~ml!) ~g St(2 SIO so 3 min 63 8 sec 9 min 30 sec _9:JO 47 3 mm Bl 8 sec 13 min SO secJ 9:JO JI )min 73 e sec 13 min 50 sec IJ.50 04 tmi;i 17 6 see IS min SO sec:4 IJ:50 96 Smin 9B 9 sec 20 min 20 sec 20:20 21 2 mi:\ Bl 8 sec 23 min ..0 secs 20:20 25 2min 92 9 sec 23 min 50 sec 2l:SO 32 J min SJ 7 sec 28 min 0 sec6 2J:SO 00 I min IS 6 sec li.mi.u..S~tsec 28:00 66 lm1n 57 7 ~ec 32 min 10 se:1nll)"':o., or full(.:tiun:l.l, ,u..;h.1:. rnit.lui.tinn .111J 1narl..tuuv,. I he ,j111u1.\u1,n :.ho''' rhe need to 1)la1.~ herweco {ht' two 1nhob.,uff11:itu1 'Pt\.1. tn vton- "l'\lr,1l lv.1td1t'' 111 ahcorb the \:tr1Jtiun' in proi:t\) tillll'' ~uh'llJl11.1ltt.i111ul:ili>ll' t.(n11J l'loi. (ou 1u 'hu\v how n1.1n~ h:u1.h1:t. ;1u: needed.PROBLEMSMa1ena1 compilado con fines acad6mlcos,se prohibe su rel)1.ld wav Jaih: nu111hlr 01 g.1(111t'lll'hdd ovt_ruir,lu. h:.,ed on )11u1' ,i111ubti11n.b. tf th ~ '\( ,:"\( , J11 ~~1tn1"nt, ,1(1,dryd('~ln('\l for th:i.1tb~. If \J:"\(;I> < ~(;'\(".1htn (:-\(;;\!( - \11':(,I>)~.1nnut1:0. 11111:-1 Ill: at.kkJ to rbc 11u111hl'r of i:;.irnwnr:-. urriv iui; tlu- uc xt d ... :(1 c1hc:u11 tlk :"'(,N(' f~1r thi. llC"1.;.1 c.h~. 1 h, 'i11111l.u1011 "u111i11u('' in thi ... ni;u\lll'f.Ji. \.:;,111tH1ll', rhm rlu- '1l1r1.. i-, 1,_n1pq .tt 1hc o;i.1rt, ')in111~171, ll, SO>. f5Cl. 94, 61), (')f.. 9.1, Y5t. (:-1l.09. 49!.il0,!0,681, i4S.2J. I I). rll.l8, 40), (3. ?S, ~.l).1"9. 9.1,~I), {2H, 14.4S)\X1h1d1one \\'oulJ yo!I rcL(101111c.1HI ii horh 1n.i-.:hinJ.:" \.o..,ttht ,,1n1c to pur.:h.1.;J.:. opLr.uc 111ll n1amt 1111?I( llACllll! Il.lh I S tl,1\' t.' the 1>rufC"i51t,$prndmuch of 1hnc .1nJ w hre propornon of th pes of dicnh: :\, l~. C, 600 0.40 IO 0.10o.soend D. The nun:tj!.l'r \v~1nc~ lo .:a~..c."")~ die number o( !SO JO 0 651nttd1in~~ required to produce ~uc....ls fur fh~..t'd1t'1H~. 710 0.10 IO 0.01.~..l...~.......~.....U.~.~a. Exrlnin how ~i1uul~11ion could be uwd cu p, .u U,,,"'J.t' 1.thk (Ill C:,lr snb-...10. "l'CP the- -amc ~1.-'l.'l..lr s.11 .. , Jistnhuunn for 1k'itl nr :h Ill l'.'in1~11i.'.k (Ill 1h..: )H11.k1H Cl>R()\.1 f() :1 ..111ck: trri( C::.:>\ii1n1d.lfio11 ttit/J fx