Business Process Modeling Simulation And Design 2nd Edition Manuel Laguna, Johan Marklund - Solutions

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Purchasing requests arrive to an agent at a rate of six per day. The time between arrivals is exponentially distributed. The agent typically requires 1 hour to process a request. The processing time is also exponentially distributed. Assuming 8-hour working days:a. What is the cycle time (the
A mechanic, Bob, requires on average 3 hours to complete a repair. Furthermore, the repair time closely follows an exponential distribution. Bob realizes that by hiring his nephew Bill as an assistant, he can reduce the average repair time to 2 hours. The repair time will still be exponential,
Demonstrate that each of the following situations can be represented as a basic queuing process by identifying its components. How would you define the corresponding queuing system?a. The checkout stations in a supermarketb. The tollbooth at a road-toll checkpointc. An auto shop or garaged. An
An order fulfillment process has demand for three order types during the next 4 weeks, as shown in Table 5.20. The assignment of activities to workers and processing time for each activity are shown in Table 5.21. All workers have 40 h/week available to work on this process. Use the TOC principles
Use the TOC and the data in Tables 5.18 and 5.19 to determine how many units of each job type should be completed per week in order to maximize profits.Consider that the availability is 5500 min for resource R1, 3000 min for resource R2, and 8000 min for resource R3.
A process-design team is analyzing the capacity of a process. The team has developed the flowchart in Figure 5.17. The numbers between parentheses indicate the processing times in minutes, and the labels above or below each activity indicate the resource type (i.e., R1 = resource 1). The process
A process management team has studied a process and has developed the flowchart in Figure 5.16. The team also has determined that the expected waiting and processing times (in minutes) corresponding to each activity in the process are as shown in Table 5.17.a. Calculate the average CT for this
Nine people work in the process depicted in Figure 5.15. The numbers next to each activity are processing times in minutes. Table 5.16 shows the assignment of workers to activities.a. Calculate the capacity of the process in jobs per hour.b. Management is considering adding one worker to the
Consider the business process depicted in Figure 5.14 and the time values (in minutes)in Table 5.15. Use CT efficiency to compare this process with a redesigned version where the rework in activity G has been eliminated and activities D, E, and F have been merged into one with processing time of 10
Three teams (T1, T2, and T3) work in the process depicted in Figure 5.13, where the numbers in each activity indicate processing times in minutes. Calculate the capacity utilization of the process assuming that the throughput is 1 job/h.
Assume that four resource types are needed to perform the activities in the process of Exercises 5.9 and 5.10. The resource type needed by each activity is shown in Table 5.14.a. Considering that there are two units of resource 1, two units of resource 2, three units of resource 3, and three units
Assume that the processing times (in minutes) for the activities in Exercise 5.9 are estimated as shown in Table 5.13. Calculate the CT efficiency.
For the process flowchart in Figure 5.12, where the numbers between parentheses are the estimated activity times (in minutes), calculate the average CT.
For the process in Exercise 5.7, assume that the resources in Table 5.12 are needed in each activity. Also assume that there are two units of R1, three units of R2, two units of R3, and two units of R4.a. Calculate the theoretical process capacity and identify the bottleneck.b. If the actual
Consider the process flowchart in Figure 5.11. The estimated waiting time and processing time for each activity in the process are shown in Table 5.11. All times are given in minutes.a. Calculate the average CT for this process.b. Calculate the CT efficiency.
The process of designing and implementing a website for commercial use can be described as follows. First, the customer and the web design team have an informational meeting for half a business day. If the first meeting is successful, the customer and the web design team meet again for a full day
In Exercise 5.3, it is mentioned that at any given time, one can find 60 customers in the store. How often can the manager of the store expect that the entire group of 60 customers would be entirely replaced?
A branch office of the University Federal Credit Union processes 3000 loan applications per year. On the average, loan applications are processed in 2 weeks.Assuming 50 weeks/year, how many loan applications can be found in the various stages of processing within the bank at any given time?
A Burger King processes on average 1200 customers/day (over the course of 15 h).At any given time, 60 customers are in the store. Customers may be waiting to place an order, placing an order, waiting for the order to be ready, eating, and so on. What is the average time that a customer spends in
What is the relationship between WIP and the input and output rates over time?
Explain in your own words the different types of flows in a process.
A telecommunications company needs to schedule five repair jobs on a particular day in five locations. The repair times (including processing, transportation, and breaks) for these jobs have been estimated as shown in Table 4.24. Also, the customer service representatives have made due date
Time commitments have been made to process seven jobs on a given day, starting at 9:00 AM. The manager of the process would like to find a processing sequence that minimizes the number of tardy jobs. The processing times and due dates are given in Table 4.23.
Consider the jobs in Table 4.22. Use Moore’s algorithm to find the sequence that minimizes the number of tardy jobs. Assume that processing can start at time zero.TABLE 4.20 Data for Exercise 4.14 Activity Description Time (Min) Immediate Predecessor A Open and stack applications 0.20 —B
Suppose the jobs in Table 4.21 must be processed at a single facility. (All times are given in minutes.) Assume that processing starts after the last job arrives, that is, at time 20. Compare the performance of each of the following scheduling rules according to the average weighted tardiness,
Longform Credit receives an average of 1200 credit applications/day. Longform’s advertising touts its efficiency in responding to all applications within hours. Daily application-processing activities, average times, and required preceding activities(activities that must be completed before the
A business process has a market demand of 35 jobs per day. A working day consists of 490 min, and the process activity times do not exhibit significant amounts of variation. A process management team would like to apply the line-balancing technique to assign activities to workstations. The activity
A process manager wants to assign activities to workstations as efficiently as possible and achieve an hourly output rate of four jobs. The department uses a working time of 56 min/h. Assign the activities shown in Table 4.18 (times are in minutes) to workstations using the “most followers”
A process consists of eight activities. The activity times and precedence relationships are given in Table 4.17. The process must be capable of satisfying a market demand of 50 jobs/day in a 400 min working day. Use the longest activity time rule to design a process line. Does the line achieve
Sola Communications has redesigned one of its core business processes. Processing times are not expected to vary significantly, so management wants to use the line-balancing approach to assign activities to workstations. The process has 11 activities, and the market demand is to process 4 jobs per
Modify Ragsdale and Brown spreadsheet model* to solve the line-balancing problem described in Example 4.1.
Calculate the efficiency of the line-balancing solution depicted in Figure 4.17.
A scientific journal uses the following process to handle submissions for publication:a. The authors send the manuscript to the Journal Editorial Office (JEO).b. The JEO sends a letter to the authors to acknowledge receipt of the manuscript.The JEO also sends a copy of the manuscript to the
A firm with four departments has the load matrix shown in Table 4.15 and the current layout shown in Figure 4.22.a. What is the LD score for the current layout? (Assume rectilinear distance.)b. Find a better layout. What is its total LD score?
A department within an insurance company is considering the layout for a redesigned process. A computer simulation was built to estimate the traffic from each pair of offices. The load matrix in Table 4.14 summarizes the daily traffic.a. If other factors are equal, which two offices should be
Develop a flowchart for the claims-handling process in Section 1.2.2.
Develop a process activity chart for the IBM Credit example in Section 1.1.2.
Develop a general process chart for the receiving and delivering process in Exercise 1.2.
Develop a general process chart for the requisition process in Exercise 1.1.
Based on your own experience, identify business processes that used to be competitive but have become outdated because of new (information) technology or because they are unnecessarily complex in light of what competitors offer. For instance, consider the effect the Internet and e-commerce have had
Consider the example from the insurance industry described in Section 1.2.2.Analyze which of the design principles summarized in Figure 3.10 and Figure 3.11 are used in redesigning this process and how.
Consider the original IBM credit process described in Section 1.1.2 and compare it with the redesigned process described in Section 3.6.2. Discuss which of the design principles summarized in Figure 3.10 and Figure 3.11 have been used, and how they are achieved.
Use the devil’s quadrangle framework to identify and discuss which performance measures may be affected (positively or negatively) by the following process changes:a. A new computer application is introduced that speeds up the handling of loan applications.b. An e-tailer hires temporary warehouse
Discuss the advantages and disadvantages of using quantitative process modeling and simulation for testing new designs. How would you relate process modeling and simulation to pilot tests on the real system?
Describe a potential application of case management in the following organizations:a. Dell Computersb. A telecommunications companyc. A community hospital
Identify similarities and differences among the 10 conceptual design principles discussed in Section 3.6.2. How would you summarize the underlying ideas or themes? Do the principles make sense? Why or why not?
Discuss the difference between stated and real (or hidden) customer needs. Why is this distinction important in the context of business process design? Give an example.
Discuss how benchmarking can be a useful tool in business process design projects.
What are the main issues in understanding a process? Are there any differences between a design project and a redesign project? How does the concept of “analysis paralysis” fit in?
Give an example of the application of the following disruptive technologies in a setting familiar to you:a. Shared databasesb. Wireless communicationsc. Handheld computingd. Artificial intelligence
Explain in your own words the difference between inductive and deductive thinking.
What is the difference between process design or redesign and automation?
In most improvement programs, top-management commitment is emphasized as a key success factor. Why do you think this is? Is the role of top management different in a situation with a revolutionary implementation strategy than it would be under an evolutionary change tactic? How?
What are some of the important considerations when selecting a process for a design project? How might the scope of the process influence the relative importance of the criteria used? Are all processes with poor performance top candidates for redesign?How does this relate to the discussions
Customer relationship management (CRM) has emerged as an important application in business software. It has been defined as a horizontal business strategy that focuses on customer-facing portions of business processes. CRM software is designed to integrate a company’s sales, marketing, and
Telson, a European telecommunications and mobile operator company, is facing fierce competition in its home market after a recent deregulation. Executives at Telson believe that the quality of service must increase drastically to remain competitive.Customers have identified two critical service
PCs and the Productivity Paradox (adapted from Goldsborough, 1998)—Despite the riotous instability of stock prices, some prognosticators are advising us not to worry. Sure, the stock market has experienced unprecedented growth without significant downslide for several years. And sure, the market
How can the general revolutionary change model help explain the many reengineering failures? What is the pragmatic strategy many companies tend to use to lower the risk of failure and the cost of change but still leverage the potential of business process design? What are its main advantages and
Explain how total quality management and business process redesign can support one another in the context of the methodology outlined in Figure 2.15.
Discuss the similarities and differences among the reengineering frameworks suggested by Roberts, Lowenthal, and Cross et al., described in Section 2.3.5. Also, what connections can be seen with the Six Sigma framework?
Discuss the principles commonly used in reengineering for deciding which processes to redesign. How do these criteria relate to those used in Six Sigma for prioritizing among improvement projects?
What are some of the criteria often used to determine when a process should be redesigned? What forces drive the need for process redesign?
What is the meaning of the process paradox? How can it be avoided?
How would you position Six Sigma in relation to reengineering and TQM?
What are some of the reasons often cited for reengineering failures? Can you see any connections to the Six Sigma framework or the general principles for process management?
What are some of the reasons often mentioned for the success of Six Sigma? What are the rationales? Do you think they make sense?
At the core of Six Sigma programs lies the improvement methodology DMAIC.Discuss how each of its five steps relates to the other components of the Six Sigma framework.
What are the traditional roles in a Six Sigma improvement project, and how are they related to the training scheme? Does this approach make sense to you? Can you see any potential drawbacks, for example, in light of the theories for evolutionary and revolutionary change?
What is the standard approach in Six Sigma for reducing variability? How does it relate to improvements in cycle time and yield?
Do the Six Sigma cost and revenue rationale and the combined effect of the efficiency and effectiveness loops make sense? How would you interpret this in a situation where Six Sigma is applied at a hospital or an educational institution such as a university?
What are the components of the Six Sigma framework? Are there any similarities with issues emphasized in reengineering and general process management? What is the importance of each individual component for the overall approach? What are the implications if a certain element is not in place?
How would you define or describe a Six Sigma initiative to a friend who has never heard about this before? What is new about Six Sigma compared with other quality management programs?
What is the technical definition of Six Sigma quality, and how is this definition related to the measure of 3.4 dpmo?
Considering the document distribution example in Section 2.1.4:a. What would you say are the main problems with the management of this process?b. Do you agree with Joe’s approach for arriving at a better-managed process?c. Is there anything you would do differently?d. Do you see any potential for
Explain the CPS model and the “chain of customers” concept. How does this help to facilitate an effective process orientation?
How is the Six Sigma improvement methodology related to the basic principles of process management and the three phases of initialization, definition, and control?
What are the purposes and challenges of each of the six main principles or activities that define successful process management? Does it make sense to group the activities into the three phases: initialization, definition, and control? Why or why not?
What are some of the main advantages and challenges of adopting a process-oriented view of the organization? How are these related to the traditional functional structure?
The fast development and widespread use of smartphones, portable computers, global positioning systems, Internet, and mobile services has drastically changed many of the processes in our everyday life. It has also profoundly changed the business processes in many industries. Consider, for example,
A city council hires a consultant to help redesign the building permit process of the city. After gaining an understanding of the current process, the consultant suggests that the best solution is to create a one-size-fits-all process to handle all building-related applications. What is your
Consider the process to connect international flights (for example, those arriving from Europe) and United States–bound flights in Exercise 1.5. Identify the main components of this process’s architecture; that is, the inputs and outputs, the flow units, the network of activities and buffers,
Some time ago, Toronto Pearson Airport implemented a new process to connect international flights (for example, those arriving from Europe) and United States–bound flights. The new process was described on Connection Information Cards that were made available to arriving passengers. The card
Environmental Computer Models (adapted from Harbour, 1994): An environmental company specializes in developing computer models. The models display the direction of groundwater flow, and they are used to predict the movement of pollutants. The company’s major customers are state and federal
Hospital Administrative Processes (adapted from Harbour, 1994): A director of administration for a large hospital complex receives some disturbing news. A recent auditor’s report states that 28 percent of all hospital costs are related to administrative costs. The director is determined to lower
Receiving and Delivery Process (adapted from Harbour, 1994): The company in Exercise 1.2 has a large manufacturing complex that is spread over a large area.You are assigned to study the receiving-and-delivery subprocess to make recommendations to the senior manager for streamlining the process. The
Requisition Process (adapted from Harbour, 1994): A large company is having trouble processing requisition forms for supplies and materials. Just getting through the initial approval process seems to take forever. Then, the order must be placed, and the supplies and materials must be received and
Describe a process you are familiar with; for example, getting ready for work or school in the morning. Who is the customer? Identify the components in the process hierarchy and classify the activities as value adding or non–value adding. Are there opportunities for improvements?
Warehouse efficiency—a distribution system for a large grocery chain consists of 25 warehouses. The director of logistics and transportation would like to evaluate the relative efficiency of each warehouse. Warehouses have a fleet of trucks to deliver grocery items to a set of stores within their
Consider the linear programming model for process D shown in Section 11.3.2. The manager of process D has suggested the use of the following weight values: h1 = 0.4, h1 = 0.75, and g = 1. The manager argues that if each process is allowed to choose weights in order to maximize its efficiency, he
In some applications of DEA, it has been suggested to impose limits on the weight values for all the processes; that is, the application considers that each weight must be between some specified bounds. Under which circumstances would it be necessary to impose such a range?
Do you think it is possible for a process to appear efficient simply because of its pattern of inputs and outputs and not because of any inherent efficiency? Give a numerical example to illustrate this issue.
One major concern with the DEA approach is that with a judicious choice of weights, a high proportion of processes in the set will turn out to be efficient, and DEA will thus have little discriminatory power. Can this happen when a process has the highest ratio of one of the outputs to one of the
Use the graphical approach to DEA and the data in Table 11.15 to determine the efficiency of each process.TABLE 11.14 Key Indicator for Five New Loan Applications Company Liquidity Profitability Activity A 0.78 0.27 1.58 B 0.91 0.23 1.67 C 0.68 0.33 1.43 D 0.78 0.23 1.23 E 0.67 0.26 1.78 TABLE
Apply the k-NN classifier to the data in Exercise 11.3. Use the classifier with k = 3 to make decisions with respect to the five loan applications in part (b) of Exercise 11.3.Are the recommendations from the k-NN classification rule the same as those found with the application of the
The manager of a commercial loan department for a bank wants to develop a rule to make loan-application decisions.† The manager believes that liquidity, profitability, and activity are the three key indicators of performance that are helpful in making a decision on a company’s loan application.
An if-then statement is the simplest form of the inference block of a business rule.A set of “if-then” statements are such that the “if” is the condition of the rule and the “then” is the action. Typically, rules that are based on multiple if-then statements are evaluated sequentially,
BI and BPM.* Nearly all business processes involve complex value-based decision points, such as loan approvals or up-sell opportunities. Complex decision making may require information that often is not delivered within the workflow, and decision makers must spend time gathering the information
The management of a major ski resort wants to simulate the rental program during the high season.* The resort has two types of customers: people who pay cash and people who use a credit card. The interarrival times of these customers is exponentially distributed with means of 130 and 60 s,
With a preliminary simulation of 10 days of operation of an emergency room, an analyst found the results, shown in Table 9.40, in terms of the average number of patients waiting. Suppose the analyst would like to estimate the average number of patients waiting with a 95% confidence interval whose
An analyst has suggested a new design for the process in Exercise 9.14. A simulation of the proposed process yielded the WIP values in Table 9.39. Test the hypothesis that the new process has a mean WIP that is less than the average of the old process.Assume a 5% significance level.TABLE 9.37

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Business Process Modeling Simulation And Design 2nd Edition Manuel Laguna, Johan Marklund - Solutions

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