Emory ISOM 351 Walton Final Exam
process management - Answer-the art and science of analyzing, measuring, and optimizing business
processes
process management matters because - Answer-organizations must be able to consistently execute their
processes to deliver value to their customers
start to finish time - Answer-time it takes one unit from start to finish, total work content
cycle time - Answer-time between units being finished, completion rate
design capacity - Answer-max amount of work per time period assuming no constraints
effective capacity - Answer-actual amount of work per time period
bottleneck - Answer-process step that limits output, rate limiting step
utilization rate - Answer-actual output divided by design capacity
idle time - Answer-time when work is not being processed
Gantt charts - Answer-- used to visualize process characteristics
, - show activities, resources, duration, sequence
- helpful to locate the bottleneck, determine over/underutilized resources, suggest areas for
improvement
what is the relationship between cycle time and capacity - Answer-- Cycle time is the bottleneck's time
to perform its activity
- The cycle time determines the capacity of the system—bc the bottleneck is the rate limiting step
- Capacity of the system can be calculated by taking the total hours divided by the cycle time (Design
Capacity) and for Effective Capacity, you need to subtract by the STF time first and then divide by the
cycle time and add one at the end
process metrics - Answer-- how long: stf time, throughput time, cycle time
- how many: design and effective capacity
- how much used: utilization
batch size - Answer-number of units that move together as a group
setup time - Answer-time needed to prepare to execute a process
raw materials inventory - Answer-materials consumed by a process before any transformation takes
place
work in process inventory - Answer-materials in some intermediate state of processing
finished goods inventory - Answer-materials that are fully processed and ready to be delivered
optimization - Answer-design and operation of a system/process to make it as good as possible
process management - Answer-the art and science of analyzing, measuring, and optimizing business
processes
process management matters because - Answer-organizations must be able to consistently execute their
processes to deliver value to their customers
start to finish time - Answer-time it takes one unit from start to finish, total work content
cycle time - Answer-time between units being finished, completion rate
design capacity - Answer-max amount of work per time period assuming no constraints
effective capacity - Answer-actual amount of work per time period
bottleneck - Answer-process step that limits output, rate limiting step
utilization rate - Answer-actual output divided by design capacity
idle time - Answer-time when work is not being processed
Gantt charts - Answer-- used to visualize process characteristics
, - show activities, resources, duration, sequence
- helpful to locate the bottleneck, determine over/underutilized resources, suggest areas for
improvement
what is the relationship between cycle time and capacity - Answer-- Cycle time is the bottleneck's time
to perform its activity
- The cycle time determines the capacity of the system—bc the bottleneck is the rate limiting step
- Capacity of the system can be calculated by taking the total hours divided by the cycle time (Design
Capacity) and for Effective Capacity, you need to subtract by the STF time first and then divide by the
cycle time and add one at the end
process metrics - Answer-- how long: stf time, throughput time, cycle time
- how many: design and effective capacity
- how much used: utilization
batch size - Answer-number of units that move together as a group
setup time - Answer-time needed to prepare to execute a process
raw materials inventory - Answer-materials consumed by a process before any transformation takes
place
work in process inventory - Answer-materials in some intermediate state of processing
finished goods inventory - Answer-materials that are fully processed and ready to be delivered
optimization - Answer-design and operation of a system/process to make it as good as possible
