Business process flow analysis as a tool for improving repair loop logistics

Business process flow techniques were implemented at NCR's European Logistics Center to manage flow times, capacity utilization, and improvements in spare parts logistics. The methodology helped to visualize organizational interrelationships by defining the process flow, and it provided key performance measurements, suck as throughput time measurements, work content, and capacity utilization, that pointed toward directed improvement suggestions. Use of the suggestions presented in this article can speed up the rework loop by at least 10 days, which represents $3 million worth of stock, resulting in a yearly savings in inventory holding costs of $0.6 million.