Process Flow Analysis:

Capacity Analysis (Bottleneck Analysis)

Dr. Iman Nosoohi

iman.nosoohi@mun.ca
Agenda

 Capacity Analysis
 Process Bottleneck
 Ideas for Process Improvement
 Multiple Flow Units

2
 Flow The items that flow through the process
Units May be homogenous or heterogeneous

The transformation steps in the process

Activities
Process Each activity takes some time to complete

Entities
They perform the activities
Resources
Have capacities

Storage units for flow units

Buffers
May have finite size
 Introduction to Operations Management
Key Steps in Process Analysis

1. Purpose of the Analysis: Analyze capacity and identify

operational improvements.

2. Process Mapping
o What are the flow units?
o What are the activities and their sequence?
o What are the resources, their times to perform each
activity?
o Incorporate all this information in the process map

3. Capacity Analysis: Identify the capacity of each resource and

of the process.
Process Flow Analysis

Flow time:

The shortest amount of time a flow unit

must spend in an activity or a process.
 Introduction to Operations Management
Example: Serving Hamberger

Process Mapping
(Ignore queues, sourcing and cooking of meat)

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

8s 10s 8s 6s 2s 2s
 Introduction to Operations Management
Linear Process Map

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

8s 10s 8s 6s 2s 2s

Where are resources?

 Introduction to Operations Management
Gantt Chart

RESOURCES ACTIVITIES Time Span

Place an
Cashier 8s
order
Worker1 10s
Toast buns
Toaster
Add 8s
Worker 2
dressings
Add meat 6s
Worker 3
patties

Worker 4 Package 2s

Worker 5 Deliver 2s

Time
 Flow time

• The shortest amount of time a flow unit

must spend in an activity or a process

Capacity Rate
Measuring
• The maximum number of units that can
Process flow through a process/activity in a
given time
Performance:
Capacity Bottleneck
Analysis • The slowest resource (the resource
with the lowest capacity rate)
 Introduction to Operations Management
Example: (Capacity Analysis)

Basic Process Analysis: Single Stage Process

Toast buns: 10 sec

Toaster
Worker 1
Flow Time: The shortest amount of time a flow unit must spend in an
activity or a process.
(Time that buns spend in the toaster):10 sec

Capacity Rate = Number of orders processed per

unit time
???

Capacity Rate
0.1 orders/sec, or 6 orders/min, or 360 orders/hr
17
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

360/hr

Theoretical Flow Time of the whole process:

8+10+8+6+2+2=36 (sec)

Note: The theoretical flow time ignores the possibility

of waiting; so it is the lowest possible flow time
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

360/hr

Poll 1- Is this statement true?

“Since flow time=36 sec, the capacity rate of the process is 3600/36 = 100
orders/hour”

a) Yes b)No
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

360/hr

Poll 1- Is this statement true?

“Since flow time=36 sec, the capacity rate of the process is 3600/36 = 100
orders/hour”

a) Yes b)No
 Introduction to Operations Management
Gantt Chart: Multiple Stage Process

RESOURCES ACTIVITIES Time Span

Place an 8s 8s
Cashier
order
Worker1 10s 10s
Toast buns
Toaster

Worker 2 Add dressings 8s 8s

Add meat 6s 6s
Worker 3
patties

Worker 4 Package 2s 2s

Worker 5 Deliver 2s 2s

Time 36 46
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

450/hr 360/hr 450/hr 600/hr 1800/hr 1800/hr

Poll 2- Capacity rate of the entire process?

a) 450 units/hr
b) 360 units/hr
c) 600 units/hr
d) 1800 units/hr
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

450/hr 360/hr 450/hr 600/hr 1800/hr 1800/hr

Poll 2- Capacity rate of the entire process?

a) 450 units/hr
b) 360 units/hr
c) 600 units/hr
d) 1800 units/hr
 Introduction to Operations Management
Basic Process Analysis: Multiple Stage Process

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

450/hr 360/hr 450/hr 600/hr 1800/hr 1800/hr

Capacity rate of the whole process = Capacity rate of the slowest resource
360 orders/hr
28
 Introduction to Operations Management
The Bottleneck

• The resource with the lowest capacity rate

• The “slowest” resource (or the resource with the
highest “unit load”)
• Unit load: Total amount of time the resource works to
process each flow unit

• Bottleneck determines the capacity rate of the entire

process
• Increasing the capacity of non-bottleneck resources
does not increase the capacity rate of the process
 How can we improve
the capacity rate of a
process?
 Introduction to Operations Management
Process Improvement:
What happens if we add a cashier?

Place an
order
Toast Add Add meat
Package Deliver
Place an buns dressings patties
order

Worker 1
Cashiers Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
900/hr
360/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 450/hr)

Poll 3-Flow time of the process?

a) 36 sec b) 32 sec c) 18 sec d) 44 sec
 Introduction to Operations Management
Process Improvement:
What happens if we add a cashier?

Place an
order
Toast Add Add meat
Package Deliver
Place an buns dressings patties
order

Worker 1
Cashiers Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
900/hr
360/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 450/hr)

Poll 3-Flow time of the process?

a) 36 sec b) 32 sec c) 18 sec d) 44 sec
 Introduction to Operations Management
Process Improvement:
What happens if we add a cashier?

Place an
order
Toast Add Add meat
Package Deliver
Place an buns dressings patties
order

Worker 1
Cashiers Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
900/hr
360/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 450/hr)

Capacity rate of the whole process: ???

 Introduction to Operations Management
Process Improvement:
What happens if we add a cashier?

Place an
order
Toast Add Add meat
Package Deliver
Place an buns dressings patties
order

Worker 1
Cashiers Worker 2 Worker 3 Worker 4 Worker 5
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
900/hr
360/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 450/hr)

Capacity rate of the whole process is still: 360

orders/hr
 Introduction to Operations Management

What happens if we add a toaster?

Toast buns
Place an Add Add meat
Package Deliver
order dressings patties
Toast buns

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toasters
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
720/hr
450/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 360/hr)
Poll 4- Capacity rate of the entire process?
a) 450 units/hr
b) 360 units/hr
c) 600 units/hr
d) 1800 units/hr
 Introduction to Operations Management

What happens if we add a toaster?

Toast buns
Place an Add Add meat
Package Deliver
order dressings patties
Toast buns

Worker 1
Cashier Worker 2 Worker 3 Worker 4 Worker 5
Toasters
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec
720/hr
450/hr 450/hr 600/hr 1800/hr 1800/hr
(2 * 360/hr)
Poll 4- Capacity rate of the entire process?
a) 450 units/hr
b) 360 units/hr
c) 600 units/hr
d) 1800 units/hr
 Introduction to Operations Management
Adding a Toaster: Gantt Chart

RESOURCES ACTIVITIES Time Span

Place an
Cashier 8s 8s
order Worker 1 is not busy
Worker1 10s all the time, and can
Toast buns take care of 2 toasters
Toaster 1
Worker1 10s
Toast buns
Toaster 2

Worker 2 Add dressings 8s 8s

Add meat 6s 6s
Worker 3
patties

Worker 4 Package 2s 2s

Worker 5 Deliver 2s 2s

Time 36 44
 Process Improvement:
Introduction to Operations Management
Another Approach

Place an Toast Add Add meat

Package Deliver
order buns dressings patties

Worker 1
Cashier Worker 2 Worker 3 Worker 3 Worker 3
Toaster
8 sec 10 sec 8 sec 6 sec 2 sec 2 sec

Note: The theoretical flow

Theoretical Flow Time of the whole process: 36 sec time ignores the possibility
of waiting; so it is the
lowest possible flow time

Capacity rate of the whole process: 360 orders/hr

40
 Introduction to Operations Management
Thinking in terms of resources not activities!
The form of calculation that I like to see from students ☺
Resource Unit Load Capacity Rate Capacity rate
(sec/unit) (unit/min) (unit/hr)
Cashier 8 60/8=7.5 7.5*60=450
Toaster 10 60/10=6 6*60=360
Worker 1 10 6 360
Worker 2 8 7.5 450
Worker 3 10 6 360

Unit Load: Total amount of time the resource works to process each flow unit
 Introduction to Operations Management
Thinking in terms of resources not activities!
The form of calculation that I like to see from students ☺
Resource Unit Load Capacity Rate Capacity rate
(sec/unit) (unit/min) (unit/hr)
Cashier 8 60/8=7.5 7.5*60=450
Toaster 10 60/10=6 6*60=360
Worker 1 10 6 360
Worker 2 8 7.5 450
Worker 3 10 6 360

Unit Load: Total amount of time the resource works to process each flow unit
 Introduction to Operations Management
Bottleneck Characteristics

• The bottleneck is the slowest resource, i.e. the

resource with the smallest capacity.

• The bottleneck is fully utilized while other resources

are not utilized

• Shortening non-bottleneck tasks decreases flow time

but does not affect capacity rate

• Increasing capacity at one bottleneck may create

another bottleneck.
45
 Introduction to Operations Management

Multiple Flow Units

• Most organizations have to deal with multiple types of

customers or producing multiple types of products.
• An emergency department has multiple types of patients.
• A coffee shop or a restaurant has to prepare multiple items
on the menu.

• How to perform process analysis when there are multiple

flow units?
 Introduction to Operations Management
Process Analysis: Multiple Flow Units

Resource Unit Load (minutes/unit)

Product A Product B Product C
1 2.5 2.5 2.5
2 1.5 2 2.5
3 12 0 0
4 0 3 3
5 3 3 3

▪If you produce only Product A, what is capacity rate of the

process (per hour)? Which resource is the bottleneck?
 Introduction to Operations Management
Process Analysis: Multiple Flow Units

Resource Unit Load (minutes/unit)

Product A Product B Product C
1 2.5 2.5 2.5
2 1.5 2 2.5
3 12 0 0
4 0 3 3
5 3 3 3

▪If your product mix is 1 unit of A, 2 units of B and 2 units

of C, what is your capacity rate? Bottleneck?

7
Process Analysis: Multiple Flow Units
Introduction to Operations Management

Activity Resource Unit Load (minutes/unit)

(Sandwich Product A Product B Product C 1A+2B+2C
shop)
Take order 1 2.5 2.5 2.5 12.5
Cheese/ 2 1.5 2 2.5 10.5
bread type
Grill? 3 12 0 0 12
Toppings? 4 0 3 3 12
Pack 5 3 3 3 15

▪When multiple flow units go through a process, the “product

mix” needs to be considered while determining the unit load of
the resources and the capacity rates.
▪The bottleneck depends on the product mix.
Process Analysis: Multiple Flow Units
Introduction to Operations Management

Activity Resource Unit Load (minutes/unit)

(Sandwich Product A Product B Product C 1A+2B+2C
shop)
Take order 1 2.5 2.5 2.5 12.5
Cheese/ 2 1.5 2 2.5 10.5
bread type
Grill? 3 12 0 0 12
Toppings? 4 0 3 3 12
Pack 5 3 3 3 15

▪When multiple flow units go through a process, the “product

mix” needs to be considered while determining the unit load of
the resources and the capacity rates.
▪The bottleneck depends on the product mix.
Process Analysis: Multiple Flow Units
Introduction to Operations Management

Activity Resource Unit Load (minutes/unit) Capacity

(Sandwich Product Product Product 1A+2B+2C Rate
shop) A B C (units/h
our)
Take order 1 2.5 2.5 2.5 12.5 60/12.5
=4.8
Cheese/ 2 1.5 2 2.5 10.5 5.71
bread type
Grill? 3 12 0 0 12 5
Toppings? 4 0 3 3 12 5
Pack 5 3 3 3 15 4
▪When multiple flow units go through a process, the “product mix”
needs to be considered while determining the unit load of the
resources and the capacity rates.
▪The bottleneck depends on the product mix.
▪ In this example bottleneck is the resource that does ‘Packing’.
 Introduction to Operations Management

Process Analysis: Multiple Flow Units

How to identify bottleneck?

• When multiple flow units go through a process, a “product

mix” needs to be considered while determining capacity
• Count the total amount of work per resource (also known
as the “unit load”) for product mix
• The bottleneck depends on the product mix
• The bottlenecks can move as the product mix changes
 Introduction to Operations Management
Takeaways

• Process Mapping

• Theoretical Flow Time

• Capacity Rate of a Process

• Bottlenecks

• Multiple Flow units

• Process Improvement
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