Chapter 4: Flow-Time Analysis

 Flow time – The total amount of time required by that unit to flow through the process from
entry to exit.
o The flow time of different flow units varies substantially
 Flow Time of a Process – The average flow time of the individual flow units
 Reasons Process Flow Time is a Valuable Measure of Process Performance:
o 1) Flow time affects delivery-response time – Key product attribute that customers
value.
o 2) Short flow times in the production and delivery process reduce the inventory and
associated costs – By Little’s Law
o 3) A shorter flow time in a firm’s new product development process enables the firm
to more quickly introduce the produce to the market- A major source of competitive
advantage. Enables the firm to bring more generations of a product to a market.
o 4) In markets featuring shorter product life cycles, shorter mfg-process flow time
allows firms to delay production closer to the time of sale – gain valuable market
information, avoid product obsolescence, and minimize inventory required
o 5) Short flow times result in fast feedback and correction in quality problems
o 6) It is an integrative measure of overall process performance – short flow time
frequently requires a high level of overall operational excellence
4.1 Flow Time Measurement

 Flow time of a process can be determined by:

o 1. Direct observation
 1. Observe the process over a specified, extended period of time
 2. Select a random sample of flow units over the specified period
 3. Measure the flow time, from entry to exit, of each flow unit in the sample
 4. Compute the average of the flow times measured
o 2. Application of Little’s Law ( Indirect Approach)
 I=RXT
 Average Inventory could be measured by:
 1. Observe the process over a specified, extended period of time
 2. Select a random sample of points of time during the specified period
 3. Measure the actual inventory within the system boundaries at each
point in the sample
 4. Compute the average of the inventory values measured
 Example: Golden Touch is charged with releasing research reports. The firm’s reports can be:
new release and updates. In a typical month the department releases 20 new released, for a
combined value (sales price) of $40,000, and 40 updates for a combined value of $20,000. On
average, there are 10 open (unfinished) new releases and 8 open updates
o Flow time of reports, irrespective of type, we can define the flow unit of the process as
one report. Throughput R = 20+40 = 60 reports per month.
 Inventory = 10+8= 18 reports
 T = I/R = 18/60 = .3 month
 o Flow of sales dollars through the system, we can define the flow unit as a sales-dollar.
The throughput R = 40,000+20,000 = $60,000 per month.
 Inventory = 10 X 2,000 + 8 X 500 = $24,000
 T = I/R = 24k/60/ = .4 month

4.2 The Process Flowchart

 Elements of a Process:
o Inputs and Outputs
o Flow units
o Network of activities and buffers
o Resources allocated to activities
o Information structure
 Process Flowchart – A graphical representation of the network structure of the process.
Originally developed to coordinate large projects involving complex sets of activities and
considerable resources.
o Activities = Rectangles
o Precedence Relationships = Arrows
o Events = Ovals
o Buffers = Triangles - Designated locations within the process for the accumulation of
inventory
o Decisions = Diamonds – Activities at which flow is ‘routed’ into several continuing
routes, resulting in splitting of the flows.
o Roles of the various resources can be emphasized by partitioning the flowchart into
several horizontally distinct bands, one for each resource.
o Information can be distinguished from physical flows by using dashed arrows

4.3 Flow Time and Critical Paths

 Flow time of a given activity within the process is the time required by an average flow unit to
flow through the activity
o Can be measured by observing the specific activity over an extended time interval, or
estimated based on experience.
o Flow time of the process, and of each of its activities, consists of periods of activity
interspersed with periods of waiting.
 Flow time of the various activities in the process, coupled with the sequence in the various
activities performed, allow us to compute the flow time of the entire process.
o For each path, the flow time along that path is the sum of the flow times of the activities
that constitute the path.
o A flow unit can exit the process only after all the activities along all the paths are
completed.
o Flow time of a process must equal the flow time of the longest path in the process
flowchart – the critical path
 Critical Activities - Activities that lie on the critical path.
  Determine the flow time of the entire process. A delay in completing
any critical activity results directly in a corresponding delay in
processing the flow unit.

4.4 Theoretical Flow Time and Role of Waiting

 As a flow unit travels through the various activities which make up the process, it undergoes
periods of waiting interspersed with periods of activity. Thus, for each activity, we can break
down the flow time of the activity into tis waiting and activity components
o Flow time = Activity Time + Waiting Time
 Theoretical Flow Time – The minimum amount of time required for a flow unit to flow through
the process from entry to exist, without any waiting or interruptions.
o Can be computed from the flowchart of the process using the same approach as for
computing the flow time, by using data on activity time, instead of flow time.
o Can be broken down:
 TFT = Value-adding flow time + Non-value adding flow time
 Reducing non-value-adding flow time is often a powerful way to save
time and money
 Flow-Time Efficiency – The ratio between theoretical flow time and the flow time of a given
process
o FTE = Theoretical Flow Time / Average Flow Time

4.5 Levers for Managing Theoretical Flow Time

 The only way to reduce flow time is to shorten the length of every critical path
o Flow Time = Waiting Time + Activity Time
 Because these two components arise from different sources, the levers
available for managing each naturally distinct.
 Levers for reducing waiting time:
 Managing the effects of congestion
 Reducing batch sizes
 Reducing safety buffers
 Synchronizing flows
 Levers for managing the activity/theoretical part of flow time
 Basic Approaches:
o Move work content off the critical path (‘work in parallel’)
 Restructuring – leaves the total amount of work per
unit unaffected but manages the sequencing of the
various activities to reduce the length of the critical
path
 Moving work off the critical path and into paths that do
not affect process flow time.
 1. Move work off critical path to noncritical activity –
Redesigning the process so that critical activities are
performed in parallel rather than sequentially
  2. Move work off critical path to the ‘out loop’ (pre- or
post processing) – Performing them either before the
countdown for the process starts or after it ends, as
defined by the process boundary, an approach that is
also called pre or postprocessing.
o Eliminate non-value-adding activities (‘work smarter’)
 Elimination – Leaves the network structure of the
process as is, but reduces the total amount of work
required for activities along the critical path
 Value-adding Activities – Activities that increase the
economic value of a flow unit from the perspective of
the customer.
 Non-value Adding Activities – Activities that do not
directly increase the value of a flow unit
 1) Non-value adding work that is necessary to
support the current process
 2) Non-value adding work that does not
 Slack Time – Amount of time an activity can be delayed
without affecting Process Flow Time
o Reduce the amount of rework (‘do it right the first time’)
 Depends on setting a robust quality management
system
 Decreasing the amount of work by process-
improvement techniques such as SPC, design for
manufacturability, process fool-proofing, workforce
training.
o Modify the product mix (‘do the quickest things first’)
 Prioritization – Gives priority to flow units that can be
processed faster – to the extent allowed by the market
o Increase the speed of operation (‘work faster’)
 Working at a faster rate
 Increasing the speed at which an activity is performed
can be proved by acquiring faster equipment, increasing
allocated resources, or offering incentives for faster
work.
 Whatever approach is selected – it must be direct towards the critical
path: reducing the work content of noncritical activities does no t
reduce the theoretical flow time.

Exercises

1. Traffic court of King James County operates between 9-1pm. Each morning, roughly at 9am, 200
defendants show up for trial involving traffic violations. On Monday June 10, a sample of 10 defendants
was selected at random by a consultant. For each defendant, the consultant recorded the actual time
spent in discussion with the judge and time paying the fine (not waiting). Also recorded were times the
defendant arrived and left court.

a) Estimate the flow time of the process

a. The average flow time of the process can be estimated by taking the average of the total
time each defendant spent in the system.
b. (9:30-8:45) + (9:45-8:45) + …… + (12:55-9:00) + (9:20-9:00) = 1200.
c. Average Flow Time = 1200/10 = 120 min.
b) Estimate the theoretical flow time of the process
a. Average time with judge = (1+1.5+…..+ 1+1.5)/10 = 1.55 min.
b. The average time to pay fine = (5+2+…..+ 2+3)/10 = 2.4 min.
c. Theoretical flow time: 1.55 + 2.4 = 3.95 min.
c) What is the flow-time efficiency? Number only without % sign.
a. 3.95/120 = 3.3%

4.2 Wonder shed Inc. produces in addition to the standard model, a deluxe version for the
discriminating customer. The production process for the two models is identical and is depicted in figure
4.1. The activity times for deluxe models is listed in table 4.8 All times mentioned represent flow time at
various activities and include the effects of waiting.

 Path 1 (roof): Start -> 1 -> 3 -> 5 -> 7 -> 8 -> End
 Path 2 (Base): Start -> 1 -> 2 -> 4 -> 6 -> 7 -> 8 -> End

Activity Activity Time (Work Content)

1 Separate 20
2 Punch the base 35
3 Punch the roof 45
4 Form the base 10
5 Form the roof 45
6 Subassemble the base 30
7 Assemble 25
8 Inspect 40

 1. What is the process flow time for producing a deluxe shed (in minutes)?
 o Path 1 (roof) : = 20+ 45 +45 +25+ 40 = 175 minutes
o Path 2 (base): = 20+35+10 +30+25+ 40= 160 minutes
 2. What is the process flow time for producing a deluxe shed (in minutes) if the flow time of
Activity 2 is increased to 40 minutes?
o Activity 2 is not on the critical path even it is increased to 40 minutes. 175 minutes
 3. What is the process flow time for producing a deluxe shed (in minutes) if the flow time of
Activity 3 is reduced to 40 minutes?
o The process flow time will be reduced to 170 minutes.

4.3 The Evanstonian is a hotel that caters to both business and leisure travelers. When a guest calls for
room service, the room service manager takes down the order. The service manager then submits an
order ticket to the kitchen to begin preparing the food. She also gives an order to the sommelier to fetch
wine from the caller. Finally, she assigns the order to a waiter. It takes 4 minutes to take down the order
and to assign the work to the kitchen, sommelier, and waiter. It takes the kitchen 18 minutes to prepare
the typical order. It takes the sommelier 6 minutes to prepare the drinks for the order. While the kitchen
and sommelier are doing their tasks, the waiter readies a cart – this takes 10 minutes per order. Once
the food, wine, and cart are ready, the waiter delivers it to the gusset’s room. It takes the waiter 12
minutes to deliver the meal to the customer. It takes the waiter additional 4 minutes to return to the
station and debit the guest’s account. All the times mentioned represent flow time at various time at the
various activities, and include the effect of waiting.

 1. What is the process flow time (in minutes, from receipt of order to debit the guest's account)?
o The flow time is 4+18 + 12 + 4 = 38 minutes
 2. What is the process flow time (in minutes, from receipt of order to debit the guest's account)
if the waiter could prepare the cart in 8 minutes, instead of 10?
o 38 cart preparation not on critical path
 3. What is the process flow time (in minutes, from receipt of order to debit the guest's account)
if the waiter could deliver the order in 10 minutes, instead of 12?
o The critical path will be reduced to 4+18 +10 + 4 = 36 minutes

4.4 A home insurance application consists of two forms: F1 and F2 . On receipt, each application is
processed and separated into F1 and F2; 10 min. F1 requires Activity A for 15 min and then Activity B for
10 min. F2 requires Activity C for 20 min. F1 and F2 are then combined and further processed by a loan
officer for 15 min. All the times mentioned represent flow time at the various activities, and include the
effects of waiting.
  1. What is the process flow time (in minutes)?
o The flow time is 50 minutes. The critical path is the one of F1 (process and separate,
Activity A, Activity B, Loan Officer).
 2. What is the effect on flow time if 50% of F1 forms must repeat activity A one more time due
to quality problems?
o Since activity A is on the critical path, the flow time will increase by 50%* 15 = 7.5
minutes, to 57.5 minutes.

4.5 The Vancouver International Airport Authority manages and operates Vancouver International
Airport (YVR). To understand flow, management started with a single security line comprising an X-ray
scanner for the carryon items and a screening station for passengers. Arriving customers first prepare
themselves for the inspection by removing belts, coats and shoes, emptying their pockets, and
separating electronic gear from other personal items. They then deposit all bags in trays on the scanner
and proceed personally to the screening station. Once the screening is completed, passengers retrieve
their belongings , put on their shoes, belts, and coats, and exit the facility. On average it takes
passengers 30 seconds to prepare for the lines, and to place all carry-on items in the trays for the X-ray
scanner. The X-ray scanner takes 40 seconds per tray, and the average passenger utilizes 1.5 trays. The
personal screening station requires 30 seconds per person. Finally, retrieving of belongings and getting
reorganized takes 60 seconds.
 What is the theoretical process flow time (in seconds)?
o The critical path is the one through the X-ray scanner.
o The flow time is 30 + 40*1.5 + 60 = 150 seconds.
 A sample of 20 passengers was selected at random, and the time required for reach to clear
security check was 530 seconds. What is the flow-time efficiency? Number only without % sign.
o The flow time efficiency is 150/530 = 28%
 What is the impact on theoretical flow time of the process if the personal screening activity is
expedited to 20 seconds? What is the theoretical process flow time (in seconds)?
o The personal scanner is not on the critical path. 150 seconds
POW

1. Chic-ken Rulez is a food vendor at the state fair that only sells complete box meals which includes a
sandwich (chicken or turkey), fries, and drink. Customers walk up to the counter at Chic-ken Rulez and
place an order. The counter employee enters the order into the system which is displayed on several
screens for all other employees to see the items that need to be made. In the kitchen sandwich makers
assemble the selected sandwich once it displays on the order screen. The fry master will cook, salt, and
scoop the ordered fries into a cup. Meanwhile, the employee that took the order, will prepare the
requested drink. Once the sandwich and fries are complete, they are place in a window where the
counter employee places all items in a box and delivers it to the customer. Taking the order and entering
it into the system takes 5 minutes. Once entered, the display screens instantly show the items to be
made. The counter employee then takes an average of 3 minutes to make a drink. On average, it takes
sandwich makers 8 minutes to complete a sandwich and place in the pick-up window. The fry maker
takes 12 minutes on average to complete a cup of fries and place in the pick-up window. It takes the
counter employee 10 minutes to box all items and hand to customer for delivery. All times listed are
flow times for each activity and include the effects of waiting.

 a) What is the flow time of the process?

o 5=12+10 = 27 minutes
 b) What is the process flow time if the company bought an automatic potato slicer and could
reduce the amount of time it takes the fry master to make a cup of fries to 7 minutes, instead of
12?
o 5+8+10 = 23 minutes
 c) Instead of the change listed in b, assume the sandwich assemblers streamlined their sub
process and could make a sandwich in 5 minutes, instead of 8. What is process flow time now?
o 5+12+10=27 minutes
 Using the original times listed in the question. Chic-ken Rulez wishes to improve the process by
reducing the time to deliver a meal box. Customers often make an order and leave the counter
area to find seating. This is the root cause for delivery times being so long because on average a
customer's meal order is called 3 times before it is actually picked up which completes delivery.
To reduce this process time, Chic-ken Rulez is going to provide customers with a miniature
 plastic chicken with a GPS tracker inside at the time of the order. The order process is the same
except now the box and delivery activity will be two separate activities. Delivery is now
performed by food runners that use a handheld device to locate the GPS plastic chickens, collect
the plastic chicken for re-use, and deliver a customer’s ordered meal box. It now takes 2
minutes to box a meal. Based on preliminary tests, the average time to locate a GPS plastic
chicken and deliver a meal box in the food area takes 7 minutes. d) What is the flow time of this
redesigned process?

 5+12+2+7= 26 minutes

3. Jeff and his roommate are in the cake baking business. When they receive an order over the internet,
Jeff prepares a bowl and mixes cake batter according to the order (takes 6 minutes). He then pours the
batter into a baking pan that holds 1 cake (2 minutes). His roommate then puts the cake pan in the oven
and sets a timer (1 minute). Cakes bake in the oven for 9 minutes and then are cooled outside the oven
on a rack for 5 minutes. Finally the roommate takes 2 minutes to box the cake and then collects
payment from the arriving customer (1 minute). Each cake order is composed of a two tier cake (2
cakes). Also Jeff and his roommate can only perform their assigned activities and cannot perform the
other's. Although the mixing bowl can hold batter for two cakes at one time, assume the oven can only
hold one cake pan at a time. As mentioned above, pouring batter into each pan takes 2 minutes, both
cakes must be cooled before boxing, and each cake is put into the box separately one on top of the
other.
 a. Determine theoretical flow time from the order thru payment. Assume no waiting over
the entire process.
o 45
 Now consider the effect on flow time given the following alternatives:
 b. Buy a second oven that can bake one cake pan (plus existing oven cooking 1 cake pan).
o 28
 c. Replace oven with one that can hold two cake pans at the same time (still 9 min bake).
o 30
 d. Replace oven with a faster convection oven that can bake one cake pan in 6 minutes
(instead of 9).
o 30