Index
A
ABB, Six Sigma approach at, 39
ABM/ABC (improvement program), 24
Activities, classification of, 7
Activity Based Management, 42
Activity classifications, IBM Credit, 8
Activity split, 123
Activity stats block, Extend, 247, 359
Activity symbols, 105
Activity times, x-ray process, 374
Activity-based costing (ABC), 291-293
Admissions block, 306
Admissions process, 279, 303-308
hospital admissions case, 303-308
Adoption process, modeling project, 320-323
Airline ticket counter, exercise, 264
Airport connections, exercise, 23
Allied Signal, Six Sigma approach at, 39
Alternative models, for optimization, 387-388
American Express, Six Sigma approach at, 39
Analysis, cycle time (process) 146-151
Analysis, software support, 299-301
Analysis phase, of Six Sigma, 47
Analytical models, for queuing, 172,180-222
birth-and-death processes, 191-200
expected value and, 190
exponential distribution, 181-187
notation for, 187
notational framework for, 181
pipeline analogy, 190
service rate in, 191
steady-state analysis and, 189-190
terminology for, 187
Animate tab, Extend, 259
Animation customizing, Extend, 258-260
Animation option, Extend, 259
Apple Computers, 159
Applications, number of, 153
Appraisal costs, 32
Arbitrary continuous PDF, 350
Arbitrary discrete PDF, 348
Arrival process, and M/M/1 model, 200
Arrival process, queuing process, 176-177
Arrival times, nonemergency patients, 372
Arrivals, hospital admissions case, 303
Arrivals block, admissions model, 305
Assembly factory, modeling project, 323-325
Assumptions, of optimization model, 380
Attribute assignment, in modeling, 274
Attributes tab, of import block, 278
Average delay time item, of evolutionary optimizer, 382
B
Balance equations, 194-195,198
birth-and-death process and, 200
defined, 276
queuing, modeling of, 276
queuing process, 175
Bank tellers, exercise, 264-265
Batch block, Extend, 256-257, 287-288
Batch processing, 119
Batch sizes, 142
Belt levels, of Six Sigma, 46
Benchmarking, and creative process design, 85-87
Best practice, analysis option, 402
Best practice worksheet, 404
BestFit software, 328
Beta distribution, 329, 341-343
Better defaults setting, 386
Binding, defined, 288
Binomial distributions, 329
Birth-and-death processes, queuing models and, 191-200
M/M/1 model as special case, 200
rate in/rate out principle, 192-200
Black box model, of process, 393
Blocking, modeling of, 275-276
Bono, Edward de, 84
Boundary analysis document distribution process, 34-36
Box block, Extend, 257
BPR. See Business process reengineering (BPR)
Branch office bank, exercise, 233
Broken case picking, 132
Broken processes, and reengineering, 57
Buffer elimination, process design tools, 118-119
Buffers, process architecture, 6-8
Building permit process, exercise, 23
Burger King, 164
Business context, in case for action, 73
Business problem, in case for action, 73
Business process
generic, 3
Business process design, 10-12, 16-18
overall business performance, 16
Business process reengineering (BPR), 12, 24, 42, 49. See also Reengineering
Business-internal service systems, 174
Business-value-adding, defined, 6
C
and M/M/1 model, 200
queuing process, 176
Case for action, simulation-based framework, 72-74
Case picking, 132
Case team, exercise, 238
Cells, defined, 118
Centering, and cost/revenue rationale, 41
Chase Manhattan Bank, example, 78-79
calculations, 335
Cigna, 54
Claims-handling process, example, 13-16
Clear statistics block dialogue, 354
Clear statistics block, 353
Clients, number of, 152
Clone layer tool, 296-297, 382-383
Closed-loop work process, 89
Cognitive Research Trust, 84
Cohen, Steven L., 79
Commercial properties, exercise, 236
Commercial service systems, 174
Common cause variation, 41
Communication, SSM and, 112
Computer-based, simulation, 224
Conceptual design principles, 92
for population proportion, 359-361
Conformance, measurement of control points, 32
Constraints, 158-163, 378, 385
categories of, list, 161
Evolutionary optimizer tab, 385
Continual improvement, defined, 53
Continuous improvement, 16, 24, 51-53, 56, 61-63, 75, 81, 99, 101
Continuous processing, 139
Continuous simulation model, 224
Control phase, of process management, 31-33
feedback and, 33
of Six Sigma, 48
Control, into process, 90
Control points, and control phase, 31-32
Control points, and document distribution process, 31, 36-37
Convergent flows, 140
Cost
calculation, Extend software, 260
function schematic, 219
of inaction, in case for action, 73
by item block, Extend 248, 293
measures of, 32
stats block, 248, 260, 293, 359
Cost/revenue rationale, Six Sigma programs, 40-43
centering and, 41
cycle time, 41
dispersion and, 41
effectiveness rationale, 43
efficiency rationale, 40
predictability and, 41
yield and, 41
import block, 291
labor pool block, 260
CPS. See Customer-producer-supplier (CPS) model
Creative process design, 84-93
Credit application process, Extend, 243
Credit applications, modeling project, 318
Critical performance measures focus, SSM and, 112
Cross and Associates framework, reengineering, 61
Cross-functional processes, defined, 3-4
improvement potential of, 4
Crossover operator, 377
Cumulative distribution functions (CDF), 183, 346-347
Customer issues, and reengineering, 58
Customer issues mapping, 58
Customer relationship management (CRM), 99
Customer understanding, of process, 83-84
Customer-producer-supplier (CPS) model, 28-29, 34-36, 83
initialization phase, 28
input requirement phase, 29
output requirement phase, 28-29
production capability phase, 29
Six Sigma and, 43
Cycle time, 41, 139, 146-157, 313, 364
cost/revenue rationale, 41
efficiency, 150
hospital admissions case, 309,312
line plot, 352
measurement, exercise, 313
process flow management, 144
reduction, list, 155
modeling and, 294
process flow management, 146-151
Cycle time statistics admissions process, 309
redesigned process, 312
D
Data analysis, input/output, 326-374
probability distribution, of field data, 328-343
random number generators, 343-346
random variates generation, 346-349
simulation output data analysis, 349-366
simulation project case, 371-374
Data Analysis Toolpack, 365
Data collection, Extend software, 247-251
Data envelopment analysis (DEA), 61, 86, 392-410
inputs, 392
new model creation, 401
Data flow diagram, 131
Davenport, Thomas, 49
De Bono, Edward, 84
DEA. See Data envelopment analysis (DEA)
Decision model for, queuing theory, 219-220
Decision point, 90
Decision variables, 378
Decision-making units (DMUs), 392
Deductive vs. inductive thinking, 77
Definition phase, of process management, 30-31
documentation, 30
Definitions, of Six Sigma quality programs, 39
Dell Computers, 100
Deming, W. Edwards, 53
Density function, Exponential Distribution, 183-184
Deployment flowchart, 116
Design, business process 10-12, 16-18
Design enablers evaluation, 76-81
Chase Manhattan bank example, 78-79
grocery industry example, 79-81
categories of, 61
of creative process design, 87-93
Design steps, Six Sigma, list, 43
Design team, configuration of, 82
Determinants, of process architecture, 5
Deterministic probability distribution, 181
Deterministic simulation model, 224
Detroit Edison, 49
Diagnostics, in case for action, 73
Dialogue window
approve block, 258
decision block, 277
stack block, 279
underwriting block, 253
Discipline, queuing, 176, 178-179
FCFS, 178
FIFO, 178
LIFO, 178
LPT, 178
M/M/1 model, 200
nonpreemptive priority, 178-179
SPT rule, 178
Discount cost, of delays, 172
Discrete event library, 247-248, 256, 287, 293, 352, 359
Discrete event plotter, 253
Discrete event simulation, 226-228
Discrete processing, 139
Discrete simulation model, 224
Disjointed incrementalism, defined, 91
Disneyland, 180
Dispersion, and cost/revenue rationale, 41
Distribution choice, and PDF, 339-343
Divergent flows, 140
“Do Not Use Select Connector” box, Extend, 257
Document distribution process, management of, 33-38
feedback and, 37
flowchart for, 35
measurements and, 37
process definition, 36
process ownership assignment, 34
Document-copying service, exercise, 237
Documented software support process, 298
Dominant flow design, 91
Dry cleaner, example, 272
Dupont, Six Sigma approach at, 39
Dynamic simulation model, 224
Dysfunction, and reengineering, 56-57, 75
E
Earliest-due-date-first (EDD), 127-128
schedule, 127
Early programs, and, reengineering, 50-53
Economic perspective, of queuing, 172-173
Effectiveness loop, 43
Effectiveness rationale, 43
Efficiency, analysis option, 402
Efficiency calculation, ratio model, 393, 396-398
labor costs, 393
office space, 393
Efficiency matrix template, 410
Efficiency rationale, cost/revenue rationale, 40
Efficiency worksheet, 404
Efficient frontier, 396
Electronic Data Interchange (EDI), 391
E-mails, 299
Empirical probability, 281
End time selection, discrete event dialogue, 268
Enhancements, modeling and, 295-297
Environmental computer models, exercise, 22-23
Equipment operation, exercise, 239
Erlang distributions, 329
Ericsson, Six Sigma approach at, 39
European Union, 55
Events timeline, 228
Evolutionary algorithm, 376
Evolutionary change model, 62-64
Evolutionary change tactic, 96
Evolutionary computation, optimization, 375-377
Evolutionary optimizer, 377-378,382
Evolutionary vs. revolutionary change theories, 64
Evolver, 376
Examples/exercises
airline ticket counter exercise, 264
airport connections exercise, 23
bank tellers exercise, 264-265
branch office bank exercise, 233
building permit process exercise, 23
case team exercise, 238
claims-handling process example, 13-16
commercial properties exercise, 236
cycle time measurement exercise, 313
Chase Manhattan bank example, 78-79
document-copying service exercise, 237
dry cleaner example, 272
environmental computer models exercise, 22-23
Extend software example, 245-247
facility relocation example, 223-224
fast food chain exercise, 237
gas station car wash exercise, 234
gas station opening exercise, 236
grocery industry example, 79-81
grocery store exercise, 265-266, 317
grocery store cashier exercise, 237
grocery store manager exercise, 238
hospital administrative processes exercise, 21-22
hospital admissions example, 302-312
hospital emergency room exercise, 237, 239
insurance policy requests example, 204-205, 207-208
inventory system exercise, 265
Longform Credit exercise, 137-138
machine repair process example, 215
machine shop exercise, 234
mechanic responsibility exercise, 235
mortgage company exercise, 369-370
movie theater exercise, 237
multiple queues exercise, 315-316
office hours case, 303
order fulfillment example, 224-225, 273
PCs and Productivity Paradox exercise, 68-69
pharmaceutical company exercise, 235
pooling resources exercise, 313-314
printing shop example, 220-221
priority queues exercise, 316
process improvement example, 13-16
process performance assessment exercise, 315
queuing analysis example, 193
railroad company exercise, 239
receiving-and-delivery process exercise, 21-22
requisition process exercise, 21
rework rates exercise, 314
scientific journal exercise, 135
seasonal merchandise exercise, 238
service facility exercise, 263
simulation project case, 371-374
software support case, 298-301
Sola Communications exercise, 135
Speedy Tax Services example, 140-141
technical support call center exercise, 238
TravelCall Inc. example, 193-200, s211
variable resource availability exercise, 315
warehouse efficiency exercise, 409-410
workstation storage space exercise, 235
x-ray process at county hospital case, 371-374
Excel (Microsoft), 228-229, 333, 361, 365, 401-406
Data Analysis tool, 331
dialogue, population means, 365
functions, 333
histogram, 330
Solver, 160
Executive block, Extend, 242
Existing process, and process understanding, 81-83
Expected value, and analytical queuing models, 190
ExpertFit software, 328
Exponential distribution, 181-187,329,335
independent random variables and, 185-186
Poisson distribution and, 186
properties of, 183
Export block, 242-243, 254, 280, 290
Extend model, hospital admissions case, 311
admissions process, 304
redesigned admissions process, 311
Extend simulation model, 270
animation customizing, 258-260
cost calculation, 260
Evolutionary Optimizer, 375-376
underwriting process model, 247, 252, 257, 350
underwriting team (second) and, 254-256
F
Facility relocation, example, 223-224
Fast food chain, exercise, 237
FCFS (first-come-first-served), 125, 178
Feasibility, and reengineering, 56, 58, 75
Federal Express, 74
Feedback, and control phase, 33
Feedback, and document distribution process, 37
Field data, probability distribution of, 328
FIFO (first-in-first-out), queue discipline, 125-128, 178, 181, 209, 215, 231, 248, 263, 275, 299
File output block, 356
Fitted probability density functions, 340
Fixed cost, 292
Flow balance to bottleneck, process design, tools for, 120-124
building, 82
defined, 82
for document distribution process, 35
telephone order process, 113
Flowchart view, of Extend software, 260-262
Flowcharting tools with SSM features, list, 115
Ford Motor Company, 39, 49, 53
Formal, vs. informal business processes, 56
Fortune 500, 223
Frameworks, for reengineering, 59-62, 71-72, 86-87
product/process design, 44
Frequency distribution, cycle times, 312
Functional organization, defined, 4
Functional processes, defined, 3
Functional structure, conditions of, 25
G
Gamma distributions, 329
Gas station car wash, exercise, 234
Gas station opening, exercise, 236
General birth-and-death process, 195
General Electric, Six Sigma approach at, 39, 43
General Motors, 159
General probability distribution, 181
General process charts, 105
Generation, of items, in modeling, 270-274
Geographically dispersed resources, treatment of, 90
Goldratt, Eliyahu M., 120
Goodness-of-fit tests, PDF, 331-337, 341
Goodwill loss cost, of delays, 172
Graphical analysis, of ratio model, 395-398
Gray-Judson-Howard, 112
Grocery industry, example, 79-81
Grocery store, exercise, 265-266, 317
Grocery store cashier, exercise, 237
Grocery store manager, exercise, 238
Group technology, defined, 118
GroupWare software, 90
H
Handoffs, and process design tools, 124-125
completion times, 356
cycle time vs. simulation time, 295
cycle times, 309
Microsoft Excel, 330
sample interarrival times, 331
Histogram block, Extend, 252
History, of reengineering, 53-54
Honeywell, Six Sigma approach at, 39
Horizontal processes, defined, 3
Hospital administrative processes, exercise, 21-22
Hospital admissions, process design case, 302-312
arrivals, 303
Extend model of, 311
lab block, 307
office hours, 303
patient type, 302
registration block, 307
rooms block, 308
Hospital emergency room, exercise, 237, 239
Hybrid orientation, 118
Hyer, Nancy, 102
I
IBM Credit Corporation, 7-8, 55, 89, 91
Icon class, Extend, 261
IDEF (integrated definition), 130-131
Idle employees, cost of, 173
Imagine That Inc., 388. See also Extend software
Implementation, simulation-based framework, 96-97
Import block, Extend, 242, 271-272, 282
Import dialogue window, Extend, 246
Importance, of reengineering, 56, 58, 75
Improvement methodology, product/process design, 46-48
Improvement phase, of Six Sigma, 47-48
Improvement programs, process-oriented, 24-69. See also Process management
Independent efficiency calculations, 395
Independent exponentially distributed random variables, 185-186
Individual processes, defined, 3
Inductive, vs. deductive thinking, 77
Ineffective business process, 18-19
Inefficient business process 18-19
Inefficient process projection, 397
Inflow/outflow rates, 141
Information capture, at source, 90
Information processing, merging of, 90
Information structure, process architecture, 9
Information technology, SSM and, 112
Informational transformation, 2
Initial value item, of evolutionary optimizer, 382
Initialization phase, of process management, 26-29
CPS model, 28
input requirement phase, 29
output requirement phase, 28-29
production capability phase, 29
Input data block, Extend, 272-273
variable processing time, 286
Input random number block, Extend, 251, 258, 287, 299, 305, 337, 347-349, 356
Input requirement phase, initialization, 29
Input/output data analysis. See Data analysis, input/output
Inputs, DEA, 392
Inputs, process architecture, 5
Inputs, transformations to outputs, list, 2
Inquiry into the Nature and Causes of the Wealth of Nations (Smith), 10-11
Integer programming, 160
Integrated definition (IDEF), 130-131
Interarrival times pattern, 271
Interface analysis, document distribution process, 28-29, 34-36
Inventory system, exercise, 265
Inventory turns, defined, 145
Inverse transformation, arbitrary discrete PDF, 348
attribute assignment of, 274
Items/values, in modeling, 270-275
J
J.P. Morgan, Six Sigma approach at, 39
Job tagging sheet, 101
Jobs in system, and M/M/l model, 201-204
Johnson & Johnson, Six Sigma approach at, 39
K
Kaizen, 53
Kelton, W.D., 366
Khoshnevis, B., 366
Kitting, defined, 288
Kodak, Six Sigma approach at, 39
Kolmogorov-Smirnov (KS) test, 334-337, 367
L
L.L. Bean, 86
Lab block, 307
Labor pool block, Extend, 256-260, 290-291, 378
Largest number of followers rule, 123
Law, A.M., 366
Lead time, 139
Lean Manufacturing (improvement program), 24, 42
Letchworth Community College, exercise, 239
LIFO (last-in-first-out), queue discipline, 178, 248, 275
Linear flows, 140
Linear programming formulation, of ratio model, 399-400
Little, J. D. C., 144
Little’s Law, 144-146, 187-191
and analytical queuing models, 158, 181, 187-191, 210, 216
process flow management, 144-146
Load matrix, 134
Load-distance calculation, 108
Loan applications, simulation project, 390-391
Locational transformation, 2
Longform Credit, exercise, 137-138
Lost customers cost, of delays, 172
Lowenthal’s framework, reengineering, 60
LPT (longest-processing-time-first), queue discipline, 178
M
arrival process and, 200
calling population and, 200
queue configuration and, 200
queue discipline and, 200
rate diagram illustration for, 201
service mechanism and, 200-201
as special case, 200
M/M/c/∞/N model, 181, 189, 212-217
M/M/c/K model, 181, 189, 209-212
steady state and, 209
Machine log, process design tool, 104
Machine repair process, example, 215
Machine shop, exercise, 234
Main window, Extend, 245
Makespan, defined, 126
Malcolm Baldrige National Quality Award, 39
Management, cycle time (process), 155-157
Management commitment acquisition, 76
Management systems, workflow, 9-10
Market constraint, 161
Market research focus, SSM and, 112
Marketplace demands, in case for action, 73
Markovian probability distribution, 181
Maytag, Six Sigma approach at, 39
Measurement(s) conformance, 32
cost, 32
and document distribution process, 37
repetition, 32
response time, 32
service levels, 32
types of, list, 32
Measurement phase, of Six Sigma, 47
Measurement system, and product/process design, 46
Mechanic responsibility, exercise, 235
Memory, and exponential distribution, 184-185
Merge block, Extend, 256
Metaheuristics, defined, 377
Meter, utilization output, 296
Micro processed, term, 6
Micrografx, 115
Microsoft Excel. See Excel (Microsoft)
Mitigating strategies, in queuing process, 179-180
Model validation, modeling, 270
Model verification, modeling, 270
Modeling, general concepts of, 267-270
model validation, 270
model verification, 270
time unit selection, 268
Moore’s Algorithm, 128-129, 138
Mortgage company, exercise, 369-370
Movie theater, exercise, 237
Multiple paths
process design tools, 129130
Multiple queues, exercise, 315-316
Multiple resource types, 381
Multiple teams, with transition block, 255
Multiple-line queuing configuration, 178
Mutation operator, 377
Mutual Benefit Life (MBL), 49, 53-54, 58
N
NAFTA (North America Free Trade Agreement), 55
Network activities, process architecture, 6-8
“New Industrial Engineering” (Davenport & Short), 49
New model dialogue window, 402
Nokia, Six Sigma approach at, 39
Nonpreemptive priority, 178-179
Nonterminating processes, 269, 351-353
Non-value-adding activity, 7
Normal distribution, 329, 335, 361, 366
Notation, for analytical queuing models, 187
Notation, for waiting cost approach, 218
Notational framework, for analytical queuing models, 181
O
Objective functions, list, 126
Objective, of optimization model, 379
Office hours, hospital admissions case, 303
One-at-a-time processing, and process design tools, 119
One-tail test, 363
One-tail hypothesis test, 363-364
Operation block, Extend, 243, 254, 274, 287, 291, 299
Operation reverse block, 283-284
Operational perspective, of queuing, 172
Operational variables, 139
Operations design, SSM and, 112
Optimization, of business process performance, 375-391
alternative models for, 387-388
evolutionary computation, 375-377
processes optimization, 377-381
Optimization Value plot, 387
OptQuest, 376
Order fulfillment, example, 224-225, 273, 283, 285
Order profiling, defined, 132
Order-picking process design, 132-135
Original scope/scale, testing of, 82
Outcomes, work organization and, 88
Output
data analysis, 351
DEA, 393
process architecture, 5
statistics, 380
variables, 380
worksheet, 402
Overall business performance, 16
Overtime, 124
p
PaceStar, 115
Pallet picking, 132
PaperCo Inc., example, 215-217
linking of, 91
Parallel paths, routing, 283-284
Parallel workstations, 124
Parameter settings, Extend, 386
Part tagging sheet, process design tool, 103
Patient type, hospital admissions case, 302
PCs and Productivity Paradox, exercise, 68-69
Peat Marwick and McKinsey & Co. Index group, 53
People-oriented design principles, 92
Performance comparison, 301
PERT (Project Evaluation and Review Technique), 355
Pharmaceutical company, exercise, 235
Phillips, Six Sigma approach at, 39
Phone support process, 299
Physical transformation, 2
Pilot project implementation, testing and, 94
Pipeline analogy, analytical queuing models, 190
Pizza Hut, 54
Plotter, discrete event, Extend, 249
Plotter block, Extend, 250
Plotter library, 294
Poisson distribution, 186-187, 329
Poisson process, 181
Poka-Yoke, defined, 91
Policy constraint, 161
Policy requests, insurance company, example, 204-205, 207-208
Pooling resources, exercise, 313-314
Population mean, confidence intervals, 357-359
Population proportion, confidence intervals, 359-361
Precedence diagram, 122
Predictability, and cost/revenue rationale, 41
Preemptive priority, queue discipline, 178-179
Preserve Uniqueness box, 288-289
Prevention costs, 32
Printing shop, example, 220-221
Priority queue selection, 275
exercise, 316
Probabilistic routing, Extend, 281
Probability calculation, exponential distribution, 332
Probability density function, 182
Probability distributions, 271, 314
Probability distribution function (PDF), 328-343
distribution choice and, 339-343
goodness-of-fit tests, 331-337
Kolmogorov-Smirnov test, 335-337
Process
defined, 2
as network of activities, 9
vs. product, 117
Process activity charts, 109-110
determinants of, 5
flow units, 5
information structure, 9
inputs, 5
outputs, 5
resources, 8
Process batches, 119
Process benchmarking, 392-410. See also Data envelopment analysis (DEA)
Process complexity, vs. individual activity complexity, 6
Process definition, document distribution process, 36
Process design
and analytical queuing models, 217-222
flow balance to bottleneck, 120-124
general process charts, 105
machine log, 104
one-at-a-time processing and, 119
order-picking process design, 132-135
part tagging sheet, 103
process activity charts, 109-110
process flow analysis, 102-115
process flow diagrams, 105-109
process improvement and, 12-16
product orientation in process, 117-118
sequential processing and, 124-125
service system mapping, 112-115
work processing system, 125-129
workflow design principles, 115-130
Process evolution, 19
Process feasibility, 58
Process flow analysis, 102-115
Process flow diagrams, 105-109
Process flow management, 139-170
continuous processing, 139
cycle time, 144
cycle time management, 155-157
discrete processing, 139
theory of constraints, 158-163
work-in-progress (WIP), 142-144
Process identification/selection, 74-76
Process improvement, incremental, 12-16
core principles of, list, 65
phases of, 26
principles, list, 26
SSM and, 112
Process map, defined, 82
Process modeling/simulation, 93-96
Process ownership, initialization phase, 26-28
Process ownership assignment, 34
Process paradox, defined, 59
Process performance assessment, exercise, 315
Process time calculation, 150
Process understanding, acquisition of, 81-84
Process view, of improvement programs, 24-38
Process-driven simulation, of queuing models, 230
Processes optimization, 377-381
Processes vs. organizations, and reengineering, 56
Processes, types of, list, 3
Processing time, modeling and, 285-287
ProcTime attribute, 287
Product orientation, in process, 117-118
Product/process design, Six Sigma program, 43-48
framework, 44
improvement methodology, 46-48
measurement system and, 46
stakeholder involvement, 45
top management commitment, 45
Production capability phase, CPS, 29
Production lead time, 139
Production process flowchart, 323
Productivity paradox, 53
Program block, Extend, 273-274, 352-353
Programs
principles of, 26
Six Sigma quality programs, 24, 38-48, 97
Project activities, with random duration, 355
Properties, of exponential distribution, 183
Pseudo-random, term, 343
Purchasing process, original vs. evolved, 18-19
Q
Quality Function Deployment (QFD), 43
Queue configuration, 177-178, 200
and M/M/1 model, 200
Queue discipline, 176-179, 200
FCFS, 178
FIFO, 178
LIFO, 178
LPT, 178
and M/M/l model, 200
nonpreemptive priority, 178-179
preemptive priority, 178-179
SPT rule, 178
Queue statistics, Extend, 249, 252
alternatives, 255
Queue stats block, Extend, 248, 359
analytical models for, 172, 180-181
economic perspective of, 172-173
exponential distribution and, 181-187
idle employees, cost of, 173
operational perspective of, 172
stochastic models and, 171
variability and, 171
balking, 276
Queuing analysis, example, 193
Queuing model, Extend and, 244-247
balking, 175
calling population, 176
mitigating strategies in, 179-180
renege, 175
service mechanism, 179
business-internal service systems, 174
commercial service systems, 174
social service systems, 174
transportation service systems, 174
service cost (SC), 219
Quick Response (improvement program), 24
Quicker defaults setting, 386
R
R&D (research and development), 11
Radical vs. incremental improvement, reengineering, 52
Radical redesign, evolutionary change process and, 62
Railroad company, exercise, 239
Random model setting, 386
Random number block, Extend, 280
Random number generators, 343-346
data analysis, input/output, 343-346
pseudo-random, 343
Random numbers tab, Extend, 269
Random Seed Value, 256
Random variates generation, 346-349
Randomness
and data analysis, input/output, 327-328
Rate diagram illustration, for M/M/1 model, 201
Rate in/rate out principle, birth-and-death processes, 192-200
efficiency calculation, 396-398
graphical analysis of, 395-398
linear programming formulation of, 399-400
Receiving-and-delivery process, exercise, 21-22
steps in, 22
Recommendations, software support, 299-301
Redesign, 124
Reduction, cycle time (process) 155-157
Reengineering, of business process, 49-62
broken processes and, 57
change programs and, 51
Cross and Associates framework, 61
customer issues and, 58
Lowenthal’s framework, 60
and other programs, 51
processes vs. organizations and, 56
radical vs. incremental improvement, 52
revolutionary vs. evolutionary change, 62-64
Robert’s framework, 60
“Reengineering Work” (Hammer), 49
Registration block, hospital admissions case, 307
Reorganizing the Factory (Hyer & Wemmerlöv), 102
Repetition, measures of, 32
Repository block, Extend, 242-243, 248
Request, number of, 151
Requirements, of optimization model, 380
Requisition process, exercise, 21
steps in, 21
Resource constraint, 161
Resource data, x-ray process, 373
Resource pool block dialogue, 384
Resource stats block, Extend, 248, 359
Resources
Extend, 260
process architecture, 8
Response time, measures of, 32
Restaurant service flowchart, 116
Revolutionary change model, of reengineering, 62-64
Rework loop, 147
Rework rates, exercise, 314
RFFlow, 115
Roach, Stephen, 53
Robert’s framework, reengineering, 60
Rooms block, 308
Routing, queuing models and, 280-284
Run model dialogue window, 402-403
Runs test, random number generators, 345-346
Ryerson Polytechnic University, 102
S
Samsung, Six Sigma approach at, 39
Schematic representation, hospital admissions process, 303
Scientific journal, exercise, 135
Seasonal merchandise, exercise, 238
Select DE output block, Extend, 256-257
Sequential processing, 124-125
vs. parallel processing, 125
Service capacity, vs. waiting times, 173
Service cost (SC), queuing theory, 219
Service facility, exercise, 263
Service levels, measures of, 32
Service mechanism, 179, 200-201
Service rate, in analytical queuing models, 191
Service system mapping (SSM), 112-116
Set priority block, Extend, 280
Short, James, 49
Shortest-processing-time-first (SPT), 128
Simplicity, measurement systems and, 46
Simulation, of queuing models, 222-230
computer-based, 224
defined, 94
discrete event simulation, 226-228
process-driven, 230
single-server process and, 228-230
spreadsheet simulation, 228-230
Simulation based framework, 70-100
case for action, 72-74 creative process design, 84-93
design enablers evaluation, 76-81
management commitment acquisition, 76
process identification/selection, 74-76
process modeling/simulation, 93-96
process understanding acquisition, 81-84
Simulation output data analysis, 349-366
confidence intervals, 356
nonterminating processes, 351-353
size calculation, sample, 361-362
terminating processes, 353-356
Simulation project case, data analysis, input/output, 371-374
x-ray process at County Hospital, 371-374
Single-line queuing configuration, advantages of, 178
Single-server model with queue, 276-277
Single-server queuing process, 194
Single-server process, of queuing models, 228-230
Single-server spreadsheet simulation, 230
Six Sigma quality programs, 24, 38-48, 97
defined, 40
definitions of, 39
DMAIC, 47
efficiency loop, 42
framework, 44
in product/process design, 43-48
rationale, 44
special cause variation and, 41, 75
success of, 48
Size calculation, sample, simulation output data analysis, 361-362
Slotting, defined, 133
Social costs, of delays, 172
Social service systems, 174
Software support, process design case, 298-301
Sola Communications, exercise, 135
Sony, Six Sigma approach at, 39
Special cause variation, 41, 75
Speedy Tax Services, example, 140-141
Spreadsheet simulation, of queuing models, 228-230
SPT rule, queue discipline, 178
schedule, 128
SSM. See Service system mapping (SSM)
Stack block, 248-249, 273-278, 299, 359
reneging queue, 278
Staffing, simulation project, 389-390
Stakeholder involvement, product/process design, 45
Stat::Fit package, PDF, 328, 337-339
Stat::Fit software, 337
Stat::Fit window, 338
State variables, of simulation, list, 226
Static simulation model, 224
Statistical analysis, Extend software, 247-251
Statistical process control (SPC), 52
Statistics submenu, 359
Steady-state analysis and, analytical queuing models, 189-190
Steady-state conditions for queuing process, 189
Stochastic simulation model, 171, 224
Strategy, and business process design, 16-18
Structured analysis and design technique (SADT), 130
Suboptimization, defined, 4
SWOT analysis, defined, 17
Syntax, for IDEF0 model, 131
System dynamics capture,
simulation modeling and, 95
T
Tactical routing, 282
Tardiness, 126
Target input and output values, 403
Target worksheet, 405
TeamFlow, 115
Technical support call center, exercise, 238
Technology, vs. automation, 77
Technology,rules.and, 78
Telecommunications company, process map of, 83
Teller configuration, 264
Telsol, 99
Tension Software, 115
Terminating processes, 353-356
Terminology, for analytical queuing models, 187
Text tool, 295
The Goal (Goldratt &
Cox), 120
Theory of Constraints (TOC), 120, 159
process flow management, 158-163
Throughput, 139
Throughput rate, process flow management, 141-142
Throughput time, 144
Time Based Management, 42
Time unit selection, modeling, 268
Timing, of reengineering, 54-56
Toyota, 159
TQC (improvement program), 24
TQM (improvement program), 24-25, 52-53
Training, in product/process design, 45-46
Transaction block, 255, 278, 291, 300
Transactional transformation, 2
Transfer batches, 119
Transformation model, of process, 2
Transformations, of inputs to outputs, list, 2
Transient conditions for queuing process, 189
Transportation service systems, 174
TravelCall Inc., example, 193-200, 211
Triangular distributions, 329
Turnover ratio, defined, 145
Tutorial, Extend software, 244-247
Tutorial, optimization of business process performance, 381-387
Two server queuing process, 197-198, 211
Two-tail test, 363
U
Unbatch block, Extend, 256, 261
Unbatching, 290
Underwriting process model, Extend, 247, 252, 257, 350
cost collection blocks, 261
two teams, 254
Underwriting team (second), 254-256
Uniform distributions, 329
University Federal Credit Union, 164
Utilization plot, Extend, 253
V
Valley of Hope Hospital, modeling exercise, 318-320
Van Gigch, John P., 12
Variability, and queuing, 171
Variability reduction, in Six Sigma, list, 41
Variable cost, 292
Variable resource availability, exercise, 315
Variation, Six Sigma and, 40-41
Vendor managed inventory (VMI), 89
Vertical processes, defined, 3
Virtual output chart, 407 worksheet, 406
Visio 2000, 115
Vision statement, simulation-based framework, 72-74
Visual Thought, 115
W
Waiting cost (WC), queuing theory, 218-219
Waiting time vs. simulation time, 250
Warehouse efficiency, exercise, 409-410
Warehouse operations, 132
Warm-up period, 269
Waste reduction, 91
Wealth of Nations (Smith), 10-11
Weibull distributions, 329, 335, 366
Weighted shortest-process-time-first (WSPT), 128
Wemmerlöv, Urban, 102
WIP. See Work-in-process (WIP)
Wireless speech recognition terminals, 132
Work centers location, 108
Work processing system, process design, tools for, 125-129
Worker training, 124
Workflow, definition phase, 30-31
Workflow design principles, 62, 93, 115-130
Workflow management systems, 9-10
Workforce principles, 62
Work-in-process (WIP), 118, 139, 142-144, 351, 368
investments, example, 223
process flow management, 142-144
Workspace principles, 62
Workstation log sheets, 101-102
Workstation storage space, exercise, 235
World Wide Web, 55
X
X-ray process, 318-320, 371-374
activities, 373
County hospital, simulation project, 371-374
flowchart, 319
resource data, 320
Y
Yield, and cost/revenue rationale, 41