What is Process Analysis? PDF Print E-mail
Written by netmba.com   

An operation is composed of processes designed to add value by transforming inputs into useful outputs. Inputs may be materials, labor, energy, and capital equipment. Outputs may be a physical product (possibly used as an input to another process) or a service. Processes can have a significant impact on the performance of a business, and process improvement can improve a firm's competitiveness.

The first step to improving a process is to analyze it in order to understand the activities, their relationships, and the values of relevant metrics. Process analysis generally involves the following tasks:

  • Define the process boundaries that mark the entry points of the process inputs and the exit points of the process outputs.

  • Construct a process flow diagram that illustrates the various process activities and their interrelationships.

  • Determine the capacity of each step in the process. Calculate other measures of interest.

  • Identify the bottleneck, that is, the step having the lowest capacity.

  • Evaluate further limitations in order to quantify the impact of the bottleneck.

  • Use the analysis to make operating decisions and to improve the process.

Last Updated ( Wednesday, 16 April 2008 00:28 )