The document discusses process design for the Action Response Applications Processing Unit (ARAPU) charity. It describes ARAPU's current process of receiving and processing aid applications, which takes over 20 days on average. This exceeds ARAPU's target of 20 days. The main problem is inefficient allocation of resources across stages. For example, the assessment stage does a large amount of "value-added" work but other stages have idle time. Simulating an improved process with fewer assessors and less rework could reduce the processing time to meet the 20 day target. Process design techniques like process mapping and Little's Law principles can help identify areas for optimization to enhance efficiency.
The document discusses process design for the Action Response Applications Processing Unit (ARAPU) charity. It describes ARAPU's current process of receiving and processing aid applications, which takes over 20 days on average. This exceeds ARAPU's target of 20 days. The main problem is inefficient allocation of resources across stages. For example, the assessment stage does a large amount of "value-added" work but other stages have idle time. Simulating an improved process with fewer assessors and less rework could reduce the processing time to meet the 20 day target. Process design techniques like process mapping and Little's Law principles can help identify areas for optimization to enhance efficiency.
Original Description:
Process Design - Case Study ARAPU (Operation Management)
The document discusses process design for the Action Response Applications Processing Unit (ARAPU) charity. It describes ARAPU's current process of receiving and processing aid applications, which takes over 20 days on average. This exceeds ARAPU's target of 20 days. The main problem is inefficient allocation of resources across stages. For example, the assessment stage does a large amount of "value-added" work but other stages have idle time. Simulating an improved process with fewer assessors and less rework could reduce the processing time to meet the 20 day target. Process design techniques like process mapping and Little's Law principles can help identify areas for optimization to enhance efficiency.
The document discusses process design for the Action Response Applications Processing Unit (ARAPU) charity. It describes ARAPU's current process of receiving and processing aid applications, which takes over 20 days on average. This exceeds ARAPU's target of 20 days. The main problem is inefficient allocation of resources across stages. For example, the assessment stage does a large amount of "value-added" work but other stages have idle time. Simulating an improved process with fewer assessors and less rework could reduce the processing time to meet the 20 day target. Process design techniques like process mapping and Little's Law principles can help identify areas for optimization to enhance efficiency.
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PROCESS DESIGN
Case Study: The Action Response Applications Processing Unit
(ARAPU) Operation Management
What is Process Design?
The activity of determining the
workflow, equipment needs, and implementation requirements for a particular process. Process design typically uses a number of tools including flowcharting, process simulation software, and scale models.
Process Design & Service/Product Design
are Interrelated
The Objectives of Process Design
Quality
Speed
Flexibility
Dependabil ity
Cost
Process Types
Affected by volume & variety
It has different type from process that produced goods or services
Manufacturin g
Service
Detailed Process Design: Process Mapping
Benefit: Describing processes in terms of how the activities in the process relate to each other. -> improve process
Process Mapping Symbol
Different Level of Process Mapping
Process Visibility
Littles Law Principle in Manufacturing Waiting time Utilization resources Throughput efficiency
of
The Effect of Variability
Case Study: The Action Response Applications Processing Unit (ARAPU)
What is ARAPU?
Action Response is a London-based charity dedicated to providing fast
responses to critical situations throughout the world
Provide relatively short-term aid for small projects until they could obtain funding from larger donors
Accessibility via the internet, by post & by phone
The charity receives requests for cash aid usually from an intermediary charity and looks to process the request quickly and provide funds where they are needed, when they are needed
Case Background Target Fast responses, only 20 days in processing the application. Key Issues 1. There are complaints about the speed of their response. 2. Costs are beginning to spiral. Goal To assess and reconfigure the processes employed within Action Research to improve responsiveness and efficiency.
What objectives should the ARAPU process be
trying to achieve?
to provide short-term aid. Therefore, unless the process can turn around applications fast, it is failing to fulfil its primary aim.
What is the main problem with the current
ARAPU process? We need to know:
how how how how
many claims each stage has to process
many people are available at each stage long each person is available for processing long on average each claim takes to process
Start
300 application forms per week
Application form is received by 4 clerks
100 application forms
per week
Committee of trustees ratification application form
Ratification application form Accepted 150 application
Store application form
Payment
Opening and checking application form
Application form are in line of processing
Opening and checking process
ApplicationApplication form is form is received received by coding by coding staff staff
Input applicatio n form by 5 coding clerks
Rejected
Waiting for committee of trustees meets on Thursday
Accepted
7 assessors assess application form
Scanning applicatio n form
Application form is received by senior applications assessors secretarys desk
Declined 150 application Decline application form is received by officer
ARAPUs Process Mapping
Officer finalize and write suitable letter
Payment
Document is received by dispatch clerk
300 application done per week Dispatch process
Finish
How much value-added work is being done at
each stage? 300 application per week and 100 application put aside by assessor per week. Receipt stage 400 x 10 minutes per application = 4.000 minutes (66,67 hours) Coding stage 400 x 20 minutes per application = 8.000 minutes (133,33 hours) Assessment stage 10 minutes for 100 application 60 minutes for 300 application (1/4 x 10) + (3/4 x 60) = 47,5 minutes 400 x 47.5 minutes = 19.000 minutes (316,67 hours) 316,67/35 = 9 assessors
How much value-added work is being done at
each stage? Each Payments & Decline stage gets 150 applications per week (half of the 300 that emerge from the assessors), so: Payment stage 150 x 50 minutes = 7.500 minutes (125 hours) Decline stage 150 x 30 minutes = 4.500 minutes (75 hours) Dispatch stage 300 x 10 minutes = 3.000 minutes (50 hours)
Inefficiency in Process The whole process output is 300 claims processed per week and from the case there are around 2000 claims in process at any given time, Unit operates 35 hours week. The cycle time of the whole process is = 35/300 = 0,12 hours Throughput time = work in progress x cycle time Throughput time = 2.000 x 0,12 = 240 hours = 34 days More than 20 days target
How could the ARAPU process be
improved? Hired new assessors, balance the process More throughput
ARAPU improvement eliminate applications that need further information
Educating potential applicants
The Improvement
Internet-based services
Simulation THROUGHPUT 300 applications per week cycle time is 35 / 300 = 0.12 hours Throughput time = work in progress x cycle time (20 days) 140 hours = WIP x 0,12 WIP = 1.166,67 WITHOUT RECYCLING Educate applicant to eliminate incomplete application. So, it can minimize recycling 300 x 47.5 minutes = 14.250 minutes (237,5 hours) 316,67/35 = 7 assessors
CONCLUSION Process design is important in every process stage for identifying the efficiency and effectiveness in order to make improvement. Based on Little Laws formula, there are some way to optimize process design such as: Waiting time Utilization of resources Throughput efficiency
