Economic Themes (2011) 49 (4) 12, 695-711

THE ROLE OF THE NETWORK DIAGRAM IN ANALYSIS OF PROCESS CAPACITY AND EFFICIENCY


Marija Anđelković-Pešić, Radenko Milojević, Vesna Janković-Milić

Abstract: This paper deals with issues concerning process capacity and process structure changes. The aim of the paper is to point out the effects of process improvement by enhancing its capacity. The task is to explore the possibilities and to suggest ideas for improving the process by eliminating restrictions, whether they come from insufficient capacity, or they come by inappropriate structure of the process. Realization of this task can be facilitated by constructing a network diagram, as a tool of network planning methods. Network diagram is considered to be an adequate tool for the realization of this task, because it offers the possibility of process structure analysis, as well as process duration analysis.

Keywords:  process; capacity; bottleneck; efficiency; network diagram

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