Vorlesung

• Black box that uses resources (labour, capital) to transform inputs (raw materials, unserved customers) into outputs (finished materials, served customers)

• Usually has start and end points and a defined sequence of intermediate steps

• “Processes” are the core concept of operation management

1. Inventory

   • number of flow units contained within the process

   • In a production setting referred to as work-in-process (WIP)

2. Flow Time

   • time it takes a flow unit to get through the process

3. Flow Rate

   • The rate at which the process is delivering output

   • Measured in [flow units/unit of time]

Flow Unit:

• determined by the type of product or service the supply process is dealing with

• flows through processs, starting as an input and later leaving as an output

• Examples: vehicles in auto pant, travelers for an airline

A buisness process is a chain of events, activities and decisions

… involving a number of actors and objects,

… triggered by a need

and leading to an outcome that is of value to a customer.

Buisnes Process Management is

Body of principles, methods and tools to design, analyze, execute and monitor buisness porcesses, with the aim of improving their performance.

• Order-to-Cash

• Procure-to-Pay

• Application-to-Approval

• Fault-to-Resolution

• all conscious decisions are based on (mental) models

• mental models reduce complexity

  • easier evaluation > quicker decision

  • filtering of irrelevant information (“selective perception”)

Definition:

• relatively enduring and accessible, but limited, inter conceptual representation of an external system