New Technologies in Operations

1. New Technologies in Operations

2. Advanced Manufacturing Technology Enterprise Engineering Towards the 21 st Century. A Unified Approach to Enterprise Improvement.

3. Enterprise Engineering The Challenges of Change Integrated Change Processes Strategic Visioning Business Process Re-Engineering Continuous Process Improvement Information Engineering Re-Engineering the I.T. Function Readiness Assessment

4. Re-invention of Enterprise Structures Fundamental Changes in How people work Explosive changes in technology

5. 1/3 of 1970’s FORTUNE 500 had vanished by the end of the 1998’s • The death rate is increasing • 1/3 of today’s FORTUNE 500 will be gone in 10 years time Corporate Survival?

6. Changing Technology • Pervasive, powerful intelligent devices • Automated factories • Client server and right sizing • Co-operative processing – Groupware • Electronic channels – EDI • High band width open networks • Multi media – Image and voice • User oriented information systems • Rapid software development

7. IBM 1995 IBM 2010 PEOPLE 130 5 VOLUME/DAY 700 2000 INVENTORY TURNOVER 5x 80x MEAN TIME 1 year 8 years BETWEEN FAILURES Automated Manufacturing

8. Globalism • Trading Blocks Pacific Rim European Community NAFTA • Deregulation • More competitors; lower margins • Oversupply of products; greater choice • Increased customer expectations Changing Marketplace

9. Changing Enterprise • Shorter windows of opportunity • Fast redesign of products • Extended enterprise (EDI links) • Participative Management • Empowered Work Force • Entrepreneurship • Growth of high-tech countries (like Japan) • Growth of cheap-labour countries (Ex-USSR, India, China)

10. Paradigm Shift – Industrial Worker to Knowledge Worker Machine Fragmented Work • Minimize scope of individual work • People serve machines • Integrate top-down • Hierarchical management structure Computers and Networks Integrate Work • Maximize value of individual worker’s contribution • Human/Technology partnership • Workers integrate bottom-up • Dynamic management structure

11. Rethink the scope of the enterprise Re-engineer Enterprise wide Value streams Redesign Business procedures Automate Existing systems As technology grows in power, It increasingly has the capacity to change how the enterprise Should function

12. The New Visions • Quality – “Customer Delight” • Responsiveness • “Strategic opportunities from I.T.” • “Empowering the work force” • “Change for Survival”

13. Key Questions Concerning Change Model of Change Building Processes Management Processes

14. Results Now! • Focus on customers • “Do more with less;” reduce cycle time • Measure and track performance • Accountable teams

15. A New Paradigm • Knowledge-centred vs Machine-centred work • Empowerment and vs Control as management’s learning central role • Flexible and creative vs Rigid and Authoritarian processes • Chaotic and boundary vs Structured and self- -less contained organisations and systems

16. Organisation Structure “Every organisation is designed perfectly to Get the results that it gets”. David Hanna • Information Flow is slow and painful • Management layers filter information • Turf defence becomes more of a priority than optimising productivity

17. Align Shared Vision … Shared Vision Change Team Compare Implement Continuous Learning Cycle Plan Results Change Management Act Implementing and Sustaining Change Sponsor

18. Continuous Process Improvement A systematic approach taken by all employees to achieve the highest levels of quality and competitiveness through continuous improvement of operations, products and services Customer Satisfaction Leadership Quality Results Information and Analysis Quality Assurance Planning for Quality Human Resource Utilisation

19. EE Enterprise Engineering A disciplined and architecturally based approach to continuously building the modern corporation and the information sharing systems which enable it.

20. What Is Strategic Visioning? A learning process that creates architectural sketches, blueprints and Road Maps for the transition to an enterprise.

21. Market driven • Improved time to market • Modular products and components Flexible Manufacturing • Technology leadership • Low life cycle cost • Total quality company World Class Effectiveness Manufacturing Vision

22. Examples of Vision Ford • Quality is Job 1 Honda • Quality in all jobs – learn, think, analyse, evaluate and improve • Reliable products – on time, with excellence and consistency • Better communication – listen, ask and speak up

23. Extends over years • Initial phases normally take four months • Focuses attention on: Validation of results Creation of implementation plans Strategic Visioning

24. BPR – Business Process Re-Engineering Fundamental rethinking and radical redesign of business processes, jobs, structure and control, to achieve dramatic improvements in cost, quality, service and speed

25. The BPR Perspective • Set very aggressive targets • Take the customer’s view (value stream) • Give customers excellence • Empower workers • User technology innovatively • Share data across functions • Develop new measures and rewards • Rewrite the business rules

26. BEFORE AFTER FORD No. of People for vendor payment 500 125 CON EDISON Admin. Costs of procurement 100% 20% DIGITAL EQUIPMENT Manufacturing defect rate 17% 3% CANON Productivity of lens designers 1 x 14 Example of BPR

27. Value Stream A sequence of processes which create A result of value to a customer. “A value stream is a logical collection of people, skills, tools and tasks that interact to promote customer satisfaction and thus provide value to the business”

28. Led from the Top – Sponsorship, Involvement • Desire for Radical Improvement • Motivate Project Team (Full Time) • “Clean Sheet of Paper” – no preconceived ideas • Value Stream, not organisational, orientation • Clear distinction between incremental process improvement and re-engineering Re-invent, without constraints Give us options to scale down What are the Critical Success Factors For BPR?

29. Enterprise Resource Planning A method for the effective planning and controlling of ALL these sources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.

30. Includes: Typical MRP II Functions Quality Functions Sales Force Automation Field Service Functions Engineering Function / PDM Complete Financial Functions Advance Manufacturing Function Human Resources Functions Distribution / Logistics Functions Management Reporting ERP is a System for the Entire Company – A Global Tightly Integrated Closed-Loop System (1) Source: APICS Complex Industries Special Interest Group

31. Why ERP? • To improve the profitability of the company • To solve problems of legacy systems (year 2000) • To be able to cope with new production requirements • To provide the architectural anchor for rationalization of acquisitions • To provide interoperability of its organizations • To provide the means for Supply Chain Management

32. Fully integrated systems where everyone has instant access to the latest accurate information • One data base, date is added only once and used by All • The system allows interoperability of the internal and external supply chain

33. What is Flexible Manufacturing System? • A flexible manufacturing system (FMS) is a form of flexible automation in which several machine tools are linked together by a material-handling system, and all aspects of the system are controlled by a central computer.

34. What are The Features of FMS? • An FMS is distinguished from an automated production line by its ability to process more than one product style simultaneously. • At any moment, each machine in the system may be processing a different part type. • FMS can let us make changes in production schedule in order to meet the demands on different products.

35. Distinguishing Characteristics: • An automatic materials handling subsystem links machines in the system and provides for automatic interchange of work pieces in each machine • Automatic continuous cycling of individual machines • Complete control of the manufacturing system by the host computer • Lightly manned, or possibly unmanned

36. Components of FMS Systems • Robotics • Material Handling / Transport • Machines • Manual / Automated Assembly Cells • Computers • Controllers • Software • Networks

37. Benefits of FMSFMS systems are intended to solve the following problems: • Reduced work in process • Increased machine utilization • Better management control • Reduced direct and indirect labor • Reduced manufacturing lead-time • Consistent and better quality • Reduced inventory