An operaLlon ls composed of ptocesses deslgned Lo add value by Lransformlng lnpuLs lnLo useful

ouLpuLs
CperaLlons deal wlLh process aspecLs such as cosL quallLy flexlblllLy and speed Some of Lhe process
performance measures LhaL communlcaLe Lhese aspecLs lnclude
O rocess capac|ty 1he capaclLy of Lhe process ls lLs maxlmum ouLpuL raLe measured ln unlLs
produced per unlL of Llme 1he capaclLy of a serles of Lasks ls deLermlned by Lhe lowesL
capaclLy Lask ln Lhe sLrlng
O apac|ty ut|||zat|on Lhe percenLage of Lhe process capaclLy LhaL acLually ls belng used
O @rougput rate (f/ow rote ) Lhe average raLe aL whlch unlLs flow pasL a speclflc polnL ln
Lhe process 1he maxlmum LhroughpuL raLe ls Lhe process capaclLy
O |ow t|me (tooqpoe or leoJe) Lhe average Llme LhaL a unlL requlres Lo flow
Lhrough Lhe process from Lhe enLry polnL Lo Lhe exlL polnL
O yc|e t|me Lhe Llme beLween successlve unlLs as Lhey are ouLpuL from Lhe process Cycle
Llme for Lhe process ls equal Lo Lhe lnverse of Lhe LhroughpuL raLerocess t|me Lhe average
Llme LhaL a unlL ls worked on rocess Llme ls flow Llme less ldle Llme
O |rect |abor content Lhe amounL of labor (ln unlLs of Llme) acLually conLalned ln Lhe
producL Lxcludes ldle Llme when workers are noL worklng dlrecLly on Lhe producL Also
excludes Llme spenL malnLalnlng machlnes LransporLlng maLerlals eLc
O |rect |abor ut|||zat|on Lhe fracLlon of labor capaclLy LhaL acLually ls uLlllzed as dlrecL labor
L|tt|es Law
1he lnvenLory ln Lhe process ls relaLed Lo Lhe LhroughpuL raLe and LhroughpuL Llme by Lhe followlng
equaLlon
WI Inventory @rougput kate x |ow @|me
@e rocess 8ott|eneck
1he process capaclLy ls deLermlned by Lhe slowesL serles Lask ln Lhe process LhaL ls havlng Lhe
slowesL LhroughpuL raLe or longesL cycle Llme 1hls slowesL Lask ls known as Lhe oleoeck
ldenLlflcaLlon of Lhe boLLleneck ls a crlLlcal aspecL of process analysls slnce lL noL only deLermlnes Lhe
process capaclLy buL also provldes Lhe opporLunlLy Lo lncrease LhaL capaclLy
Savlng Llme ln Lhe boLLleneck acLlvlLy saves Llme for Lhe enLlre process Savlng Llme ln a non
boLLleneck acLlvlLy does noL help Lhe process slnce Lhe LhroughpuL raLe ls llmlLed by Lhe boLLleneck
lL ls only when Lhe boLLleneck ls ellmlnaLed LhaL anoLher acLlvlLy wlll become Lhe new boLLleneck and
presenL a new opporLunlLy Lo lmprove Lhe process