Process Analysis in Operations Management

Business Process Analysis in Operations Management

One of the main roles of an operations manager is to track the different operation processes. This will ensure that they are working in harmony to properly produce the product. Process analysis in operations management is when you track all the aspects that made up a process in order to improve the flow of operations. This will help you to spot inefficiencies in your processes that are going to have a negative on your product.

When implementing process analysis in your organization a great tip is to be very data driven. You should have key performance indicators in place to track and measure certain metrics. That will have a huge impact on your overall operations. For example suppose you want to improve your production output. You can put a metric in place to track your production output over a period of time. If those goals aren’t met that simply means something needs to change in order to achieve your objective.

 

Process Analysis in Operations Management

 

Possible solutions for this problem would be to upgrade machinery or make changes in your daily operations to help it run more efficiently. When measuring how effective your daily processes are functioning. Some key elements you should measure for include lead time, flow rate, work in process and cycle time. These are just some of the performances you should keep an eye on. You can see each of them in more detail below.

Fill-in-the blank Excel KPI templates, dashboards, scorecards:

 

Lead time

The average time it takes for a product to move flow through the different processes. This is usually from the raw material stage to the full product.

 

Flow rate

The flow rate is the average time it takes for an item to flow past a certain point within the process.

Work in process

This is basically the number of unfinished inventory that’s currently in the process waiting for completion.

 

Cycle time

A cycle time is the amount of time it takes to create a product. This will be from the beginning of the process to the end.

You have a lot of activities you can do in order to improve your operations processes. These include reduce the number of work in process inventory, this will cut cost and improve efficiency. Improve your daily inspection process which will lead to you capturing unnoticed areas of weaknesses within your operations.

As stated before using key performance indicators will help set and track metrics within your operations. That you can then later evaluate to spot weaknesses and strengths. This will allow you to put strategies in place to eradicate those areas of weaknesses. As a result of that it will have a profound impact on your operations.

To help evaluate your operations performances you can put the collected information in bar charts, check lists, Pareto charts and graphs. These will help you to put the data in a visualized format which can then help you to communicate the information better with your team. It will also lead to better evaluation to help strengthen your decision making.

Process analysis helps you to examine all the different areas of your organization’s operation processes. It will help you to carefully track and put the necessary measures in place to improve the speed, quality and cost of your operation’s processes.

Busines templates

Free Business Analysis Templates

Now Absolutely FREE:

Mr Dashboard