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8/18/2019 4a - Manuf Stratg

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ManufacturingStrategy Concepts

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Manufacturing is Complex –WHY ?

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Manufacturing is complex because it involves;- large number of employees (skilled or unskilled)- formal and informal system or procedures- good and bad practices- old and new culture

Manufacturing changes slowly as it takes time to:

- build facilities

- install new equipment

- develop new suppliers

- change operating procedures

- train personnel

!hile customer requirements changes quickly"


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Manufacturing Strategy

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Business Strategy

# company$s business strategy is the sum of individual

strategies of its component functions i"e" manufacturing

marketing % sales &%' finance etc"

Manufacturing Strategy

# manufacturing strategy consists of a sequence of

decisions that over time enable a business unit to achieve

a desired manufacturing structure infrastructure and set ofspecific capabilities"


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Taxonomy of ManufacturingStrategy

4 Figure 1: Retrieved from Restoring Our Competitive Edge by R.H. Hayes & S. C. Wheelright a!d from "#a!ufa$turi!g Strategi$ %la!!i!g by '. (. )arvi!.


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Functional Strategies

*he third level of strategy is $om+rised of fu!$tio!al strategies.

,!$e busi!ess u!it has develo+ed its busi!ess strategy- ea$hfu!$tio!al area develo+ strategies that su++ort this strategy.

sually ma!ufa$turi!g busi!ess has the folloi!g fu!$tio!alstrategies:

1.Marketing & Sales Strategy2.Manufacturing Strategy3.Research & Development Strategy4.ccounting an! Financial Strategy

/.0uality (ssura!$e.Field #ai!te!a!$e et$

*o be effe$tive- ea$h fu!$tio!al strategy must su++ort the$om+etitive adva!tage bei!g folloed by the busi!ess strategy.


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Manufacturing Strategy Decision"ategories

Manufacturing StrategyStructural

Infrastructural

Figure 2: 'e$isio! Categories of #a!ufa$turi!g Strategy


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he first four decision categories in igure * are typically viewed as

structural because of their long term impact difficult to reverse

once they are in place and large investment required to extend or

alter"

he last four decision categories in igure * are considered to be

infrastructural (tactical) because they encompass multiple ongoing

decisions are linked with specific operating aspects of business and

generally do not require high capital investments"

hese eight decision categories are closely interrelated" orexample total annual capacity of the manufacturing facility depends

on whether its production rate is maintained at about the same level

or changed frequently" +imilarly workforce policies interact with

facility and production planning choices"


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or vertical integration

Table 1: Manufacturing Strategy Decision Categories


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Management make decisions and formulate strategies in

all these categories"

,ach of the category provides variety of choices and can

have a maor impact on manufacturing function$s abilityto implement and support the organi.ation/s business

strategy"

0t is critical that decisions made throughout in theorgani.ation at all levels must be consistent with other

decisions made at other point in time and within other

categories"


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"riteria for #valuating aManufacturing Strategy

Consistency1etween the manufacturing strategy and the overall business strategy1etween the manufacturing strategy and the other functional strategies within

the business #mong the decision categories that make up the manufacturing strategy1etween the manufacturing strategy and the business environment (resources

available governmental restraints etc")

Contribution (to competitive advantage)Making tradeoffs and enabling manufacturing to set priorities that enhance the

competitive advantage2romoting clarity regarding the manufacturing strategy throughout the

business unit so its potential can be reali.ed2roviding the manufacturing capabilities that will be required by the business

in the future

t t t


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ey utput arameters(KOPs in

Manufacturing( $ustomer buys a +rodu$t or servi$e be$ause of hisher+er$e+tio! of

"ost

$uality

Delivery timeFle%iility


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0nitial 3ost

(e"g" purchase cost of an automobile)

4perating 3ost

(e"g" gasoline cost per mile)

Maintenance 3ost

(e"g" cost of a tune-up5repair)

"ost


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2roduct quality directly influences the marketability of a product and

customer satisfaction" 2roduct with high quality should provide

following characteristics;

2erformance: he basic operating characteristics of a product; for

example how well a car handles its gas mileage"

eatures: he 6extra6 items added to the basic features such as astereo 3' or a leather interior in a car"

&eliability: he probability that a product will operate properly within

an expected time frame or the measure of confidence of a consumer

towards a particular product",g" a +ony 7 will work without repair for about seven years"

3onformance: he degree to which a product meets pre-established

standards" here should be an agreement between the designed and

the actual product standard to meet customer specifications","g" Mercedes 1en. state of the art standardi.ation and conformance

'ro!uct $uality


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!elia"le #s$ %ali&

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Reliability = Stability = Precision

Validity = Conformance = Accuracy


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'urability: 8ow long the product lasts; its life span before replacement

or a capability of a product to resist wear and tear or decay etc" # Moltifoam with care might be expected to last a lifetime"

+erviceability: he ease of getting repairs the speed of repairs and

the courtesy and competence of the repair person"

#esthetics: 8ow a product looks feels sounds smells or tastes"

+afety: #ssurance that the customer will not suffer inury or harm from

a product; an especially important consideration for automobiles"

'ro!uct $uality


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Time and timeliness: 8ow long a customer must wait for service" or

example is an overnight package delivered overnight9

Completeness: 0s everything the customer asked for provided9 or

example is a mail order from a catalog company complete whendelivered9

Courtesy: 8ow customers are treated by employees" or example

are phone operators at 23 nice and are their voices pleasant9

Consistency: 0s the same level of service provided to each customer

each time9 0s your newspaper delivered on time every morning9

!"#IT$ %&'M T C'*S!M&+S

,&S,CTI-


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"ccessibility and convenience: 8ow easy it is to obtain the service"

or example when you call ,+3 does the service representative

answer quickly9

"ccuracy: 0s the service performed right every time90s your bank or credit card statement correct every month9

&esponsiveness: 8ow well the company reacts to unusual

situations which can happen frequently in a service company" or

example how well a telephone operator at worldcall is able to

respond to a customer/s questions about a query not fully described in

the instructional manual 5 website"

!"#IT$ %&'M T C'*S!M&+S

,&S,CTI-


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1efore 'elivery:

,ase of 4rdering (ability to order over 0nternet phone)

#vailability (in-stock)

+peed (lead time - elapsed time from placement of order until its

receipt)

0nformation #vailability (use 0nternet for real-time order status)

#fter 'elivery:

#ccuracy53ompleteness (correct items in correct quantities)

'ependability (on-time delivery)


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1. Machine flexibility

Capability of a machine to perform a variety of operations on avariety of part types and sizes. It depends on changeover, ease ofmachine programming, tool storage capacity etc.

2. Routing flexibility

lternative machines, se!uences or resources can be used formanufacturing a part for changes resulting from e!uipment

brea"do#ns, tool brea"ages, controller failures, etc.

It depends on the similarity of the parts in the mix, similarity andduplication of #or"stations etc.

Flexibility


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$. %rocess flexibility

bility to absorb changes in the product line by performing similar

operations. &he process generalization method #hich can be used for more than

one product .

e.g. painting a car is a flexible process #hich have a generalized rangeof car sizes that it can adapt to.

'. %roduct flexibility

bility to change over to a ne# set of products economically and!uic"ly in response to mar"ets.

(ifferent variants in a model but closely related in design e.g. )ord producing mini truc"s as #ell as *+s - cell phones of

different models

Flexibility


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. %roduction flexibility

bility to produce a range of part styles / products that can be produced on the systems #ithout adding capital e!uipment /investment.

0. olume flexibility

bility to economically produce parts in high and lo# !uantities of

production in order to respond unanticipated demand to meetcustomer needs. It depends on the level of manual labour performing production, amount invested in capital e!uipmentetc.

Flexibility


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. xpansion flexibility

ase #ith #hich the system can be expanded to increase total production !uantities . It depends on the expense of adding the#or"stations, ease #ith #hich layout can be changed / expanded,type of part handling system used, ease #ith #hich properly trained

#or"ers can be added.

Flexibility


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. #ilte!burg 25567 divided ma!ufa$turi!g out+uts i! si8$ategories- give! i! *able 2.

(utput 'arameters inManufacturing

Table .: Manufacturing 'utputs

$uality

'ro!uct fle%iility

)olume fle%iility


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#a+es et al 19967 divided ma!ufa$turi!g out+uts i! seve!$ategories- i.e. $ost- uality $o!siste!$y- uality s+e$ifi$atio!-lead time- delivery reliability- fle8ibility- a!d i!!ovative!ess.

1.*he differe!$e i! the !umber of out+uts is due to the la$; ofge!erally a$$e+ted defi!itio!s of these ;ey $o!$e+ts.

2.*he differe!$e i! the !umber of out+uts is be$ause of thelevel of a!alysis.


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(utput 'arameters inManufacturing

=o factory in the world can provide all outputs at the

highest possible levels so it is important which output is

important to customers now and which will be important in

the future"

4nce we know which outputs customers require then we

can select the production 5 manufacturing system that is

best able to provide these outputs


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2roduct layout

2rocess layout

"lassification of 'ro!uction Systems

%igure /: Classification of ,roduction Systems (0 Miltenburg 2.334)

%ur+ose built eui+me!t

=!gi!eeri!g & mouldi!g

(utomotive

%etro$hemi$als

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