1 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Outline Manufacturing System Design

1 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology

LeanAerospace

Initiative

web.mit.edu/lean

Outline

Manufacturing System Design

Manufacturing Strategy Tools

Manufacturing System Design Tools

Manufacturing System Design Framework


LeanAerospace

Initiative

web.mit.edu/lean

What is Manufacturing System Design?

Manufacturing system design is NOT just …

Factory floor improvements

Kaizen activities

Changes within the four walls

Waste elimination

Manufacturing system design IS the above plus …

A selection of a layout that meets system demands (outputs)

Development of an operational policy for decision making

Selection of the right process technology

Make-buy decisions

Organizational structure design and interaction methods


LeanAerospace

Initiative

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Manufacturing system “infrastructure” design

Manufacturing strategy

Operating policy

Partnerships (suppliers)

Organization structure details

Manufacturing system “structure” design

Buildings, location, capacity

Machine selection

Layout

WIP


LeanAerospace

Initiative

web.mit.edu/lean


Manufacturing system “infrastructure” design

Manufacturing strategy

Operating policy

Partnerships (suppliers)

Organization structure details

Manufacturing system “structure” design

Buildings, location, capacity

Machine selection

Layout

WIP


Tools



LeanAerospace

Initiative

web.mit.edu/lean

What is Manufacturing Strategy?

A “game plan” for the manufacturing organization to keep itself aligned with the Corporate strategy

It consists of :

Long term objectives

Strategies

Programs

Initiatives

To help the business To help the business build and maintainbuild and maintain a a competitive advantage for competitive advantage for future successfuture success

To help the business To help the business build and maintainbuild and maintain a a competitive advantage for competitive advantage for future successfuture success


LeanAerospace

Initiative

web.mit.edu/lean

Why Have a Strategy?

Assures decisions based on long term success of the enterprise

Aligns manufacturing with business and corporate strategies

Creates an awareness of competition

Assures long term product, capability and process differentiation from competitors

Provides for clear communication between management levels

Focuses improvement activities on long-term success

PROVIDES A BASIS FOR FUTURE SUCCESSPROVIDES A BASIS FOR FUTURE SUCCESSPROVIDES A BASIS FOR FUTURE SUCCESSPROVIDES A BASIS FOR FUTURE SUCCESS


LeanAerospace

Initiative

web.mit.edu/lean

Outline






LeanAerospace

Initiative

web.mit.edu/lean

High Level Strategy Tools/Concepts

Focused Factory

Wickham Skinner

Product-Process Matrix

Hayes and Wheelwright

3-DCE

Charlie Fine

Nine Components of Manufacturing Strategy

Fine and Hax

Manufacturing Strategy Worksheet

Miltenburg



LeanAerospace

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Strategy Worksheet- Miltenburg

Requires a strategy before system design attempt

Implies “Design Beyond Factory Floor” idea

Connects strategy to manufacturing system selection

Recommends existing systems based on outputs needed

Evaluates system performance relative to other systems

A useful strategy and Manufacturing system design tool


LeanAerospace

Initiative

web.mit.edu/lean

Outline






LeanAerospace

Initiative

web.mit.edu/lean


Axiomatic design/MSDD

Cochran

Production Preparation Process (3P)

2-D manufacturing world maps

Toyota production system frameworks

Ohno, Shingo, and Monden

Various analytical tools/computer simulation tools

Manufacturing system design process


LeanAerospace

Initiative

web.mit.edu/lean

Map of the Manufacturing World

There Are Many of These Charts in Literature

All Use Only Two Factors (2 Dimensions)

But, There Are at Least 10 Factors

There Is Much Overlap Which Is Confusing

Real System Boundaries are fuzzy


LeanAerospace

Initiative

web.mit.edu/lean

Outline






LeanAerospace

Initiative

web.mit.edu/lean

Framework For Manufacturing System Design

A holistic view of manufacturing system design environment

Visual description of “design beyond factory floor”

Manufacturing is a part of the product strategy

Manufacturing system design is strategy driven, not product design driven

Tool of many tools

Combines useful strategy and design tools

Can lead to a innovative & new manufacturing system designs

Shows the unending design cycle -- Continuous Improvement


LeanAerospace

Initiative

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Stakeholders

Enterprise Snapshot

Business Unit Strategy

Enterprise Needs

Corporate Goals/Objectives/Strategy

Management

Manufacturing Operation

Human ResourcesServices

Consulting

R&DProduct Development Sales/Marketing

E-commerce

Investment StrategyCustomer Support

Partnerships/Alliances

Commercial

Military

Society Employees Mgmt Govt.Suppliers Customers Stockholders

Product Strategy


LeanAerospace

Initiative

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Product Strategy

Mar

keti

nM

arke

tin

gg

Product Product DesignDesign

ManufacturinManufacturingg

Su

pp

lier

Su

pp

lier

ss

Product Product StrategyStrategy

PRODUCT PROCESS

SUPPLYCHAIN

Performance Specifications

Technology And process

Planning

Time,Space, andAvailabilityProduct

Architecture, andMake/buy

ManufacturingSystem, Make/buy

Recipe, UnitProcess

Details, strategy


LeanAerospace

Initiative

web.mit.edu/lean

Buisness Strategy

Producut Strategy

Product Design Strategy Manufacturing Strategy Marketing Strategy Supplier (Strategy)

Product Strategy Product Strategy ...

Business Strategy Business Strategy ...

Corporate Strategy

Stakeholders

Executive Management (Corporate Strategy)

Middle Management (Business Strategy)

Product Strategy Product Strategy

Suppliers Suppliers Product Design Product Design Manufacturing Manufacturing MarketingMarketing

Requirements/Considerations/Constraints

Manufacturing System Design/Selection

Implement (pilot)

Evaluate/Validate

Full Rate Production

[Interpret]

[Seek approval]

Mo

dif

ica

tio

nsOptimizing

Manufacturing System Manufacturing System DesignDesign Society Employees Mgmt Govt.Suppliers Customers Stockholders

Stakeholders

Executive Management

Middle Management [Business Unit]


Suppliers Suppliers Product Product DesignDesign Manufacturing Manufacturing MarketingMarketing



Implement (pilot)

Evaluate/Validate


[Interpret]

[Seek approval]

DFMA,IPT3-DCEConcurrent Engineering

• VSM • Kaizen• Trial & Error• Kaikaku

- Miltenburg, - 3P, - 2D plots, - MSDD, - AMSDD - design Kaizen

Manufacturing System Manufacturing System DesignDesign

Mo

dif

ica

tio

ns

Fine Tune

Finalized Product Design

Make/BuyRisk-sharing Partnerships

- Analytical Tools, - Simulation Tools

Customer NeedsTechnical FeasibilityFeasible performance guarantees

Stakeholders


Middle Management [Business Unit]


Suppliers Suppliers Product Product DesignDesign Manufacturing Manufacturing MarketingMarketing



Implement (pilot)

Evaluate/Validate


[Interpret]

[Seek approval]

DFMA, IPT3-DCEConcurrent Engineering

• VSM • Kaizen• Trial & Error• Kaikaku

- Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen

Manufacturing System Manufacturing System DesignDesign

Mo

dif

ica

tio

ns

Fine Tune

Finalized Product Design

Make/BuyRisk-sharing Partnerships

- Analytical Tools, - Simulation Tools

Customer NeedsTechnical FeasibilityFeasible performance guarantees


LeanAerospace

Initiative

web.mit.edu/lean

Conclusions

Manufacturing system design beyond factory floor

Strategy driven manufacturing system design

There is no general manufacturing system design methodology

Manufacturing is a competitive weapon

Know the industry dynamicsWhich component in Product Strategy has the

highest leverage?Manufacturing Process Improvement?


Middle Management

Product Development

Manufacturing Organization

Baseline Manufacturing/TPS

Pilot Plant


Suppliers

Current SituationCurrent Situation


LeanAerospace

Initiative

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What Should the Manufacturing System Design Consider?

Capability, tax baseGovernment

Product performance, quality & cost

Satisfaction of needs

Low risk participation, steady business

Customers

General public

Business

Return of investmentStockholders

Responsible behaviorSociety/Community/Environment

Stable businessSuppliers

Employment stability

Satisfactory salary, working conditions

Promotion opportunities

Employees

Hourly

Management

Primary NeedStakeholder


LeanAerospace

Initiative

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Manufacturing System Design Process


LeanAerospace

Initiative

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Focused Factory

Focus on One or Few Products in a Factory

Advantage Through Simplicity, Repetition, Experience, and Consistency

Ability to Compete in the Focused Product

Plant Within a Plant (PWP) Idea

Easier to Improve, Change and Upgrade

No Process, Tool, Skill Conflicts

Need for a Well-defined Manufacturing Policy

Decision Aid


LeanAerospace

Initiative

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Creates Awareness to Product Position on Life Cycle Curve

Manufacturing Processes Linked to Product Life Cycle

Highly Flexible Manufacturing System Needed During Initial and Growth Stages No Design Standard

User Needs Vary

Dedicated, Cost Effective Manufacturing System Is Needed As Product Sales Saturate and Decline Standard Design

User Is Indifferent to Additional Features


LeanAerospace

Initiative

web.mit.edu/lean



LeanAerospace

Initiative

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3-DCE: Clock Speed

Three Dimensional Concurrent Engineering

Product Architecture, Supply Chain Architecture and Process Architecture

Avoids “Throwing the Design Over the Wall”

Three Strengths Instead of One (Product Design)

Shared Competitive Advantage

Shared Risk

Builds Mutual Trust Between Supplier and Contractor

Ensures “Readiness” Concurrently

Reduced Overtime, Expediting, Late Deliveries


LeanAerospace

Initiative

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3-DCE Model

PRODUCT PROCESS

SUPPLYCHAIN

Performance Specifications

Technology And process

Planning

Time, Space, and Availability Product

Architecture, and Make/buy

Manufacturing System, Make/buy

Recipe, Unit Process

Details, strategy


LeanAerospace

Initiative

web.mit.edu/lean

9 Components of Strategy- Fine & Hax

Facilities

Capacity

Vertical Integration

Processes and Technologies

Scope and New Products

Human Resources

Quality

Infrastructure

Vendor Relations


LeanAerospace

Initiative

web.mit.edu/lean

Manufacturing Strategy Tools: Application

Focused Factory

Strategy Formulation, Factory Design, Operating Policy Design


Strategy Formulation, Determine Time to Change Manufacturing System, Evaluate competitor strategy, Locate Niche Markets

3-DCE

Product Design, Manufacturing System Design, Supply Chain Design

9 Components of Manufacturing Strategy

Strategy Formulation, Determine Effect of Manufacturing on other Components and Vice Versa


Strategy Formulation, Competitive Analysis, Layout Selection, Changing existing system,


LeanAerospace

Initiative

web.mit.edu/lean

Axiomatic Design (MSDD)

Allows for Structured Break Down of A System

Links High Level Goals to Lowest System Level

Shows necessary conditions on the factory floor to achieve corporate goals

Forces the designers to prioritize Objectives

Translates ‘goals’ into ‘means’

Great Communication Tool Across the board

Does not restrict to selecting Existing Designs

A unique manufacturing system design is possible depending on the highest goal

A Visual Design Tool


LeanAerospace

Initiative

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Example of MSDD


LeanAerospace

Initiative

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Manufacturing World Maps

Shows existing systems that might match desired system requirements

Helps the designer focus on the right type of systems

Useful to verify if system is operating within limits

Useful in planning a move from one type of system to another


LeanAerospace

Initiative

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Other tools

Production Preparation Process

Creative Brainstorming

Cooperative Decision making

Unrestricted Design possibilities

Detailed consideration to each part

Various Analytical Tools And Simulation Tools

Loop, ?, ?


LeanAerospace

Initiative

web.mit.edu/lean

Product Strategy Application

Best Life Cycle Cost

Acquisition Cost + Direct Operating Cost + Maintenance Cost - Scrap

Acquisition = Development Cost + Manufacturing Cost

Direct Operating Cost = f(performance)

Maintenance = f(External Quality) + Ease of maintenance

Scrap Value = f(reliability, maintainability, customer support)

Documents

1 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Outline Manufacturing System Design