Process Type of Cases

process
New answer on Jul 08, 2019
2 Answers
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Anonymous A asked on Jul 08, 2019

I'm struggling with the cases like "optimizing the bottlenecks, increasing the outputs" with a given process. Especially cant figure how to structure these type of cases. .Can you plz help me, any ideas?

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Aleksis
Expert
replied on Jul 08, 2019
| Ex-BCG Project lead | Ex-Partners in Performance Manager | Former Case coach at Stanford

Hello!

One of the ways is to consider throughput as Equipment availability (hours a year) * Actual production rate (units / hours). Then you split availability into calendar time and time losses. You split losses into categories and analyse priority ones. Same for productivity: you look for max productivity (e.g. best shifts, or nameplate capacity…) and its losses and address them.

Hope it helps.

Aleksis

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Vlad
Expert
Content Creator
replied on Jul 08, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

There are several types of operational cases that you may have:

1) Operational math problems. (e.g. Should we increase the speed of the elevator or just buy a second one? How should we reduce the queues? How should we increase the output of a factory?).

Structuring:

  • Usually, you have to look at the process (value chain). Even the most complicated systems have the inflows and outflows

The key concepts that you have to learn:

  • Capacity and utilization (both machine and people)
  • Cycle time, Throughput time, Little's Law
  • How the does lowest cycle time influence the production? (Lead time = cycle time of the slowest process)
  • How can we mitigate the bottlenecks with low cycle time? (Buffer, Parallel process, speeding up)

2) Cost cutting cases

Structuring:

  • What is the cost composition and what are the biggest costs
  • Benchmarking of the biggest costs to find the improvement potential
  • Process improvements to meet the benchmarks
  • Costs and benefits of the proposed initiatives

The key concepts that you have to learn:

  • Internal / external benchmarking
  • Idle time
  • Core processes (usually are optimized) and the supporting processes (usually are cut)
  • Math structures (Frequency of operations * time per operation)
  • Other useful structures (e.g. people - process - technology)

Feel free to reach me for further help with these cases.

Best!

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