Prod Sys for Focused Factory

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Production Systems for Focused Factory

by- Mandar Damle

Under Guidance of

Prof. N.R.Gilke

Prof. R.Lekurwale


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Literature review

Manufacturing priorities & Corporate strategy Competitive strategy Policy making Decision making Trade offs Factory within factory Conclusion


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Introduction The production systems are evolved from Job shop and batch

production to mass production, equipment paced production to JITprinciples. Every production system has its own characteristicswhich are suitable for particular product.

We will see basic concepts of all production systems and focusedfactory concept.

There are different subsystems or support systems which directlyor indirectly affect the companys overall performance. This

includes manufacturing policy, corporate strategy, manufacturingoutputs, competitive strategy etc.


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Production system The methods, procedure or arrangement which includes all

functions, operations required to accumulate the inputs, processthe inputs and deliver the desired output.

Inputs, Processes and output

Inputs ConversionProcesses Output

Raw materials,labour, energy,machines etc.

Manual or mechanicaloperations, supportactivities likeplanning, control,testing etc.

Finishedgoods,services, profit,customer satisfaction etc.


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Types of Production Systems1. Job shop production system2. Batch flow production system3. FMS4. JIT production system5. Operator paced line flow production system6. Equipment paced line flow production system7. Continuous flow production system


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Job shop production system

It produces several different products in small batches rangingfrom one to few

It has a functional or process layout >>

Highly skilled workers

High WIP inventory

Highest possible flexibility

Rather than selling a specific product they sell its capabilities FoundryMilling

machines

LathesGrinding

Painting Drills

Office

Welding

Forging


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Batch flow Production system It produces fewer products in higher volumes than job shop Products are produced in batches GT techniques are used to identify part families Combination of process and cellular layout is used

Machining

Drilling

Grinding

Heat

treatment

DeburringCell layout


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Flexible manufacturing system

It has computer controlled machines

Automatic material handling system

Can produce many different products in low volumes


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Operator paced line flowProduction system

It can produce large family of similar products in medium volumes

Equipments arranged in line layout

Operators set the line speed depending upon product

Equipment and tooling are specialized


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Equipment paced line flowProduction system

Produces small no. of different products in high volumes

Equipment set the line speed

Operators perform relatively simple tasks

Staff needs to update the latest development in processtechnology


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Just-In Time production system

It can produce many products in low to medium volume

It has flexible production line and produce mix models of product

Most difficult of all production system to design, implement andmanage

It forces continuous improvement by identifying and eliminatingwastes


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Continues flow production system

Very high volumes of standard products It has a line layout Product design is very stable Operators job is to monitor the highly automated production

process to ensure the operates within prescribed parameters Maintenance is critical activity as break down will halt entire

production process Production is make-to-stock Raw material inventory is large Finished goods inventory is large from which orders are filled Equipment are highly specialized


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Comparison of Production systemsProductionSystem

Product Flow & Layout Equipment Employees

Job shop Many many Extremely varied,

Functional

General purpose Highly skilled

Batch flow Many Varied withpatterns, Cell orprocess

General purpose,some specialization

Multiskilled

Operator pacedline flow

Several to many Regular, line flow Specialized, someflexibility

Multiskilled

Equipment pacedline flow

Several Regular, line flow Special purpose Unskilled

Continuous flow One or few Rigid, line flow Special purpose,highly automated

Few, unskilled

FMS Very many Regular, line & cell Flexible, highlyautomated

Few, unskilled

JIT Many Regular, line flow General purpose,many specialized

Multiskilled


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Focused factory Production facility organized around a specific, limited set

of resources to provide narrow range of product andprocesses.-Most mass production facilities are designed as focusedfactories.

Each macro factory has a small no of micro or focusedfactory

Focused factory will outperform the conventional plant.

Manufacturing policies are consistent with corporatestrategies

A particular manufacturing output is decided


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Manufacturing subsystemsManufacturing levers

A Production system is divided into six subsystems

Human resources

Organization structure & controls

Sourcing

Production planning & control

Process technology

Facilities

Decision made in this subsystem includes

-Skilled & unskilled

employees-training &development-promotion &securities policy-wages


-flat or hierarchical-importance of line & staff -how managers are selected

-how are decision made-use of teams-responsibility & authority ateach level of organization


-no. of suppliers &distributors-long term relationships &partnerships-responsibility of design, cost,quality given to suppliers-procedure for decidingproduction of part in-house or sourced


-push or pull control system-size of various inventorieslike raw material, WIP,finished goods-when maintenance is done-how to scheduled designchanges & new products intoproduction


-amount of automation-to develop technologyinternally or purchasedexternally-machines are generalpurpose or specialized

-factory layout-quality practices


-location of facilities-facilities are large or small-capacity planning-capability of productionsupport departments


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Manufacturing Outputs

Cost

Quality

Delivery

Performance

Flexibility

Innovativeness

Standard products with

very narrow range winorders on price Value=f(Q,D,P,F,X)

Market qualifiers

Not really required


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Competitive Advantage Cost leaderships-Lower cost than competitors

Differentiation-Ability to offer something different fromcompetitors

Best value- Better products at same price or same products atlower price

Low profit margin

Competitive product= Value>price>cost


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Competitive strategy

Manufacturing policy Corporate strategy

Lowest total cost

Decide trade offs explicitly

Better decision making


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Literature review Manufacturing prioritiesCorporate strategy

Competitive strategies

Policy making

Decision making

Trade-offs

Plant within plant


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Manufacturing prioritiesCorporatestrategy

Consistency>

Develop an explicit & brief statement of corporate objectives & strategy

Translate these statements into what it means to manufacturing

Make careful examination of each element of the productionsystem

Operating decisions such as capacity, technology, workforceissues & quality systems must be carefully matched with theorganizations key competitive priorities

Manufacturing functions best when its facilities,technology, and policies are consistent withrecognized priorities of corporate strategy


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Competitive strategies

Strategy first>

There are many ways to compete other than low cost>

Superior quality>

Product flexibility>

High volumes

Instead of focusing first on strategy and thenmoving to define manufacturing task & next

turning to systems design in manufacturing policy,management tend to employ concept of

production which is less effective

low cost plant can be disaster if it has

sacrificed too much in Quality,delivery, flexibility etc to get its costdown

higher quality in standard product or

product having features unavailable incompeting productability to handle difficult & non standardorders, to lead in new product introduction


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Policy making

1-Analyze competitive situation 2-Critical appraisal 3-formulate company strategy 4-Define the implications- so what 5-6-constraints of economies& technology 7-8 key ones for integrating & synthesizing 9-13 implementation, control, reviews, performance measures


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1- COMPETITIVESITUATIONNumber, Kind, TrendsStrategies & Tactics of competitor

5-ECONOMICSCost structures, key costmargins, Volume change,Product change

6-TECHNOLOGYProcesses, Equipment,Materials Trends

3-COMPANYSTRATEGY

4-Task of companymanufacturingfunctionProductivity, service,Quality

8- COMPANYMANUFACTURING POLICIESSpan of process, scale of process, choice of process &equipment, plant location

2-COMPANYINVENTORYSkills, resources,Objectives, Products,Equipment, Technicalexpertise

7-EVALUATIONCompany skills,resources etc.

9-REQUIRMENTS TO BE MET BY COMPANY VICEPRESIDENT AND MANAGEMENT

10- Manufacturing systemsand procedures

11- Manufacturingcontrols

12-Manufacturing operations

13-RESULTSProductivity,service, Quality

what theothers are

doing

what we have or canget to compete

with

how can we

compete

what we must accomplishin manufacturing inorder to compete

economic constraintsand opportunities

common toindustries

constraints andopportunitiescommon totechnology

our resources

evaluated

how we should setourselves up to

match resources,economics andtechnology tomeet the task

required by our company strategyproduction planning,

use of inventories,use of standards etc.

Controls of cost, quality,

flows,inventoryand time


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Decision making Policy around one task>

The professional quite naturally seeks to maximize theircontributions & justify their positions. Obviously theseobjectives are generally in conflict.

Better decision making: No one can answer all thequestions and problems with one formula or point of viewbut surely we can improve on notion that productionsystem need only be productive and efficient. Topmanagement can manage manufacturing if they engage inmaking manufacturing policy

Wagesystem maybe set up to

emphasizehighproductivity

productioncontrol tomaximize

short leadtimes

inventory tominimize

stock levels

eachdecision

lookssensible tothe

professionalspecialist in

his field.


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Trade-offs A factory cannot perform well on every yardstick>+

Same thing true for manufacturing, variables of cost ,time,quality, technological constraints, customer satisfaction place limit

on what management can do, force compromises and demand anexplicit recognition of multitude of trade offs and choices

It is important the level at which outputs will be provided.

contrasting features demand conflictingmanufacturing tasks & hence differentmanufacturing policies

`

Manufacturing manger hasnicely aligned his

organization according tocorporate priorities- he is

subjected to pressure frommarketing because of

customer complaints aboutquality or delivery time.

Without sufficientlyexamining the trade offs he

attempts to shore upperformance along thesedimensions. Slowly the

focus & priorities changes


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Factory within factory The conventional factory v/s Focused Factory A factory that focuses on narrow product mix will outperform

Simplicity & repetition breed competence- repetition & concentration in one area will allow its work force & managers tobecome more effective & experience in the task required forsuccess

Five plants The goal of manufacturing strategy for FWF is to determine the

levels of cost, quality, delivery & flexibility that are required & theactions that are needed to achieve these levels


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Conclusion Determining the best manufacturing strategy is complex.

It is extremely important to define trade offs explicitly

A focused factory can influence the companys overall

performance and different practices followed inside the plant.

It is important to decide what manufacturing output a companyrequires for having competitive advantage.

Empirical study in India can be future scope of work.

Case study in Indian Automobile industry.


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References1.Miles R., Snow C., Meyer A., Coleman H., 1978.Organizational Strategy, Structure

and process. Academy of management review. p.546-561

2. Olhager J., 2012.The role of decoupling points in value chain management. p.37-47

3. Skinner W., 1969. Manufacturing missing link in corporate strategy. Harvard Business Review, May-June p.136-145

4. Skinner W., 1974.The focused factory. Harvard Business Review. May-June.p.113-121

5. Hayes R., Schmenner R., 1978. How should you organize manufacturing? Harvard Business Review. January-February.p.105-118


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6. Miltenburg J., 2007. Setting manufacturing strategy for a factory within factory. Int. J. Production Economics 113, p.307 323.

7. Safsten K., Winroth M., 2002. Analysis of the congruence between manufacturingstrategy and production system in SMME. Computers in Industry, 49,p. 91-106.

8. Hayes R., Pisano G., Beyond World Class: The New Manufacturing Strategy 1994. Harvard Business Review January-February.p.77-86

9. www.apics.org

10. Miltenburg J., 2010. Manufacturing Strategy., New York: Productivity press.
http://www.apics.org/http://www.apics.org/http://www.apics.org/http://www.apics.org/http://www.apics.org/http://www.apics.org/

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Prod Sys for Focused Factory