Creating a process map for new applications
From the description in the case, there are clearly a number of sections to the central evaluation unit processing centre (CEUPC) and several in-trays that are in effect inventories of applications waiting to be processed. As is often the case, the sections of the centre do not match the processing tasks. For example, there are 12 clerical staff, but these are divided into three distinct task areas. Eight clerks act as receipt clerks, two act as coding clerks, while two act as despatch clerks. In process mapping it is important to follow the tasks that are performed on whatever is being processed (in this case the applications for grants). Also from the description there are six active in-trays, one for each section, namely clerical (receipt), coding, checkers, secretarial, auditing and issuing. The diagram below summarizes the process just using the straightforward symbols of an inverted triangle for an inventory and a circle for an operation (any type of operation). It shows that 50 per cent of applications are recycled from the checking operation back to the receipt clerks’ in-tray. This will mean that, although 200 applications per week are entering the process, 100 of these are being recycled, so that the effective load on all stages up to and including the checking process will be 300 applications per week. It also implies that some applications are taking much longer because of this recycling. It may be that some applications are recycled more than once.
Note: Heading in figure to be changed to: Central Evaluation Unit Processing Centre
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© Nigel Slack, Stuart Chambers & Robert Johnston 2007 200 /
week
8 receipt clerks
2 coding clerks
2 dispatch clerks 3
checkers
10 auditors
600 in tray
130 in tray
130 in tray
130 in tray 130 in
tray 3
secretaries
Process map for the Central Evaluation Centre Processing Unit (CEUPC)
50%
recycled
220 in tray 200 /
week
8 receipt clerks
2 coding clerks
2 dispatch clerks 3
checkers
10 auditors
600 in tray
130 in tray
130 in tray
130 in tray 130 in
tray 3
secretaries
Process map for the Central Evaluation Centre Processing Unit (CEUPC)
50%
recycled
220 in tray
Calculate the cycle time for the process This involves the simple application of Little’s Law.
Taking the process as a whole:
The total work in progress (applications in the in-trays) = 600 + (4 × 130) + 220
= 1340 applications Average throughput time = 36 working days Therefore, from Little’s Law
Throughput time = cycle time × work in progress (and working in hours)
36 × 7 = cycle time × 1340
Therefore, cycle time = (36 × 7)/1340 = 0.188 hours
In other words, a fully processed application form is emerging from the process every 0.188 hours.
That is, in a 35 hour week,
the Centre will process 35/0.188 = 186.17 applications per week
This is an important finding because 200 applications per week are entering the process, but only 186.17 applications per week are emerging from the process. In other words, inventory must be building up within the process.
Calculate the number of people involved in the processing of an application In total there are:
8 receipt clerks
3 secretarial/support staff 2 coding clerks
3 checkers 10 auditors 2 despatch clerks 1 part-time adviser
This means there are 20 full-time and one part-time staff involved in the process.
Ignoring the single part-time member of staff, and assuming a 35-hour week, this means that 20
× 35 hours of labour produces 186.17 fully processed applications per week.
Therefore, the number of hours of staff time devoted to each application = (20 × 35)/186.18 = 3.76 hours.
But we also know that, on average, an application takes 36 working days (i.e. 36 × 7 hours) to move through the process.
Therefore, the efficiency of the process = 3.76 / (36 × 7) = 1.49 per cent efficient.
And probably less than that because this figure assumes that everyone works perfectly inefficiently.
Explain why it is difficult to locate an individual file
Mainly because of all the recycling and the very large inventory of applications. There are simply so many applications in the various in-trays to search through.
Summarize the problems of the CEUPC process
Although, at the surface level, this process seems to be achieving its objectives, that is only because its main objective of a 40 day average throughput time is very undemanding. There is evidence that there is significant dissatisfaction with the responsiveness of the process. This will be partly because a 40 day target is probably too slow, but also because that the target of 40 days on average still means that, because of recycling, many applicants are waiting much longer than this. The process is, after all, only 1.49 per cent efficient. This means there is a very significant amount of improvement that could be made. Theoretically, an application could move through the process in 3.76 hours, yet it is taking 36 working days.
What suggestions would you make to Veronique to improve her process?
The main issue is to stop the recycling. There are many ways in which this could be done. Most of this will involve tackling the root cause of the problem, namely that applications are entering the process with insufficient documentation or information. Clearly, an education initiative is needed both to applicants and to the university liaison officers to prevent this happening.
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© Nigel Slack, Stuart Chambers & Robert Johnston 2007
There may also be other inefficiencies in the process to investigate. We know that 3.76 hours are being expended on each application, but how is this time allocated between stages? There may be bottlenecks causing excessive delays before some stages.
Similarly, the amount of variation in the process could be reducing its efficiency. Anything to reduce variability, such as standard ways of working, could help this.
Model answers to boxed examples Ecologically smart
What are the various objectives that the Smart cars manufacturing processes must achieve?
The primary objectives for any automobile plant are cost and quality. In other words, the manufacturing processes must produce error-free cars (that are therefore more reliable in use) and must do so at the minimum possible cost. Minimizing cost usually means minimizing the cost of input resources (such as parts and energy) and ensuring that all the resources within the processes (labour and equipment) are utilized effectively. In addition, because this is a new plant producing a relatively new model of car, it may be that sales forecasts are relatively uncertain. This means that the plant and its processes must be able to meet demand, even when demand is greater than expected. Therefore, volume flexibility may be an important objective.
In addition, the company is clearly interested in the ecological impact of its products and processes. This may well be because of a combination of ethical concerns and the positive publicity that can be generated by emphasizing the car’s ‘green’ credentials.
Which do you think are the most important objectives?
The most important objectives are certainly cost and quality. No matter how variable the demand, or how important the image of environmental sustainability, the car must still be produced profitably. This means maintaining sales volumes (partly a function of its quality) and keeping its costs down (partly a function of its process efficiency).
However, note that this does not necessarily conflict with environmental objectives. Recycling materials to be used within the car’s structure may or may not be less expensive than using new materials, but at least offers the potential for cost savings. Just as important, the emphasis on not wasting energy by focusing on the efficiencies of flow within the factory contributes both to environmental objectives and saves money for the company. In fact, it is interesting to note how an emphasis on energy movement and material efficiencies make it easier to achieve both cost and environmental objectives.
By 2006 the Smart car was still not profitable for Daimler-Chrysler. Does this necessarily mean that some process objectives were neglected?
It is not necessary that some process objectives were neglected. As a set of processes the factory may be, in many ways, very well designed. The fact that the product proved not to be as appealing as was hoped is not necessarily a fault of the processes that make it. One could argue, however, that more emphasis on designing processes that were volume flexible, that is, they could operate efficiently at very different levels of output, might have meant that the car could be produced profitably even at low volumes.
C H A P T E R 5
The design of products and services Teaching guide
Introduction
This can be a fun session. All students have bought products and all students have experienced service. Given that customer reaction is an important objective of the design activity, it is easy to use the student group as a sample of consumers and ask them to evaluate alternative designs.
Bringing two or three kinds of the same type of product into the class and prompting a discussion around the design issues involved, is an obvious starting point to discuss design.
Similarly, comparing similar but different services which students will have experienced is a possibility. The main purpose is to clearly establish that there are many different alternative designs for any product or service, and that the nature of the design chosen has a very powerful impact on the operations function, which has to produce it.
Key teaching objectives
• To convince students that product and service design is an important issue in terms of its impact on operations management, and that it should be treated within operations management.
• To establish the importance of design in competitive success.
• To establish the fact that the design of services is just as important (probably more important) as the design of products.
• To emphasise the process nature of product and service design (‘All operations are processes which produce some mixture of goods and services. Within any organisation some of its processes will be producing designs for their own products and services.
Therefore product and service design is an operation like any other.’)
• To examine the overlap between design of products and services on the one hand and the design of the processes, which produce them on the other.
• To establish some of the general issues in the design process such as the way design processes start with a large number of options and finish with a single selected design, the importance of creativity in the design process, the importance of evaluation (using the criteria of feasibility, acceptability and vulnerability), the use of simulation in design, the increasing importance of environmental issues, and so on.
• To take the students through the various stages of the design process while at the same time stressing that describing a process in this way is a great simplification of reality.
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• To demonstrate the benefits of interactive design.
Exercises/discussion points
Again, there are several cases in the companion volume to this book (Johnston, R. et al, 3rd edition, ISBN 0273 65531-0), which can be used to support this lesson. Cadbury World: ten years of improvement, is ideal for service design. The development of the Hovis Crusty White Loaf is great for product design. Also, The Reltex Project can be used to illustrate the (often irrational) dynamics of the development process.
Teaching tip – Although rather old, we still make extensive use of the Harvard Business School case ‘Benihana of Tokyo’; it is still a great example of the nature of service design.
Teaching tip – An alternative to the Benihana case, which still uses the same idea, is to get students to visit a restaurant, shop or tourist attraction and identify for each, the ‘concept’, the
‘package’ and the ‘process’.
Teaching tip – One of the study activities in the chapter suggests that students can visit the web site of the UK’s Design Council (www.design-council.org.uk). This is a great source for examples of good design. Examples and ideas picked up from the site can make excellent illustrations in class and bring a lesson to life.
Teaching tip – This issue of sustainability in design is always worth discussing. It may also serve to catch the interest of students (not all of them admittedly). The Centre for Sustainable Designs site (www.cfsd.org.uk) is useful to find examples that can be used to illustrate a lesson or converted into an exercise.
Exercise – Identify a television programme that is reasonably well known and can be viewed by all students. Ask them to view the programme and then, in groups, prepare a presentation that deals with the design of the programme. Also, ask them to recommend how the design of the programme could be improved. This is a useful exercise because it encourages students to think about design in a very broad context. Design of a television programme includes not just the appearance of the programme but the way it is structured, the way it has been broken into various parts, the way it can be supported through its web site and so on. Get them to use the feasibility, acceptability, and vulnerability framework to evaluate whatever improvements they recommend.
Exercise – Quality function deployment can be relatively complex to use in practice. However, a simple exercise is to choose a service (services work better than products for this exercise) and ask the students to draw up a QFD matrix for it. An obvious service is the course on which the students are registered. Try to guide students into distinguishing clearly between the ‘whats’
(what you want the service to achieve) and the ‘hows’ (the design factors that can be manipulated to achieve the service’s objectives).
Exercise – Bring in alternative designs for a product with which the students will be familiar.
We tend to use food products for this because they are cheap and easily recognized. For example, bring in two or three boxes of chocolate assortments and prompt a discussion on the design choices which need to be made. Use the three criteria of aesthetics, usability and produceability. The other advantage, of course, is that the chocolates can be consumed!
Teaching tip –There are plenty of opportunities to use video clips in this subject. In fact there are several programmes broadcast on the design process itself, but even if these are not available, find a video clip that shows a product or service and then base an exercise around that.
Case study teaching notes
Chatsworth House Adventure Playground
Material to follow January 2007 Model answers to short cases Ocean Observations
How can this case be an example of design when there is nothing physical about a mobile phone navigation system?
Remember what design is. It is devising a concept, a package and a process for a product or service. This example exhibits all three. Quite clearly, the concept is concerned with aesthetics and usability in the sense that navigation must be easy and intuitive. The package involves the detailed graphical design of the icons together with the navigation rules that allow them to be used. The process is how these icons and navigation rules fit in with the technical functionality of the phone itself.
Design is about how products and services look and how they work. The fact that there is nothing physical there as such is really of no importance.
What do you think would be the main objectives of this design assignment?
As usual we can look at any objectives in terms of quality, speed, dependability, flexibility and cost. In this case, quality is about the usability and the aesthetics of the designs. In particular, aesthetics in this case, must include the essence of how the firm is branding itself and wants to be seen by its customers. The mobile phone market is a fashion market whose products must appeal to whatever market segment is being targeted. Thus, the quality of a design is at least partly concerned with how successful the aesthetics of a design are within the context of its target market. In addition, again because of the fashion nature of the market, it must be fast and flexible in responding to market trends. Furthermore, because the navigation screen design is only one part of a very large number of components that make up the product, designs must be delivered dependably so as to fit in with input from other sources. While costs must obviously be controlled, it is unlikely that design costs will be a very significant part of the total cost of the phone.
Spangler Hoover and Dyson