XXXIII AIM Conference: Skopje (22-25 September, 2011)

1. XXXIII AIM Conference: Skopje (22-25 September, 2011) Enterprise Restructuring/Improvement - Introduction - Prof. Delcho Jovanoski

2. FOCUS of the conference: Discussions/ideas from Grenoble • Prof. Jensen: education • Prof. Kochar: sustainability of the changes • Prof. Fahrni: continuous restructuring • Prof. Meier: production – not financial issues • Prof. Deuse: research • . . . • (of course: the colleagues have not thought that a single focus excludes the others!)

3. Continuous restructuring … there is at least one point in the history of a company when dramatic changes should be made in order to achieve a next level of performance. … (former Intel manager) (not one point; there are many!)

4. Division of Industrial Engineering and Management:Activities Education Research Applied Projects • Manufacturing systems • Operations research • Management • Project Management • Product Development • Work Study • Management of Technology • Entrepreneurship and Small Business • Modeling and Simulation • . . . • Methodology for Enterprise Restructuring • CAPP • IS • Technical Investment Planning • Organizational Design • Capacity Planning • HRM • PPC • . . . • Enterprise Restructuring • Factory Planning • Implementation of New Technologies • Continuous Improvement • Investment Planning • Business Start-Up • Quality Management • Logistics and SCM • Process optimization • . . .

5. Customer demands Top management Strategy GAP ANALYSIS - Insight in the enterprise doing I/P MATRIXES Goals of the strategy ß Perfor- Ana- Bench- consistency of the strategy goals mance lysis marking and the performance measures Measure- ment Actions for improvement of the situation PERFORMANCE MEASUREMENT SISTEM Enterprise Restructuring: COMPASS(COmpany’s Management Purpose ASSistance)Partner institution: Fraunhofer Institute für Produktionstechnik und Automatisierung (IPA)

6. Enterprise Restructuring – COMPASS:from a single organizational/functional unit to the whole enterprise and from a single KE to the bunch of KE

7. I-P matrix: portfolio(for only two key elements for success)

8. Scenarios … C A E B D improvement F 4 1 2 3 more than 10% Critical Costs improvement G Factor 1 more than 10% improvement less H 5 6 7 8 than 10% I J improvement Critical 9 10 12 11 more than 10% Factor 2 Critical improvement less improvement less Factor 1 13 15 16 14 than 10% than 10% improvement less improvement more improvement less improvement more than 10% than 10% than 10% than 10% Critical Factor 3 Critical Factor 3 improvement less improvement more than 10% than 10% Critical Factor 4

9. RESTRUCTURING OF A COUNTRY:National strategy for sustainable development of R. Macedonia (Partner institution: SIDA, Sweden) Hundreds of projects for sustainable improvement of the whole economy

10. Production – not Finance: actually all functions! • Cooperations (in development, sales, purchasing, …) • Strategies (followed and planned) • SWOT of the company • Measures from Controlling • Benchmarking of economic performance measures • Personnel • Product spectrum and development • Manufacturing organization (manufacturing, assembly, maintenance, quality management, sales, PPC, transport, warehouses, ...) • Purchasing • Know-how • . . .

11. Followed strategies Goals Strategies Ø Ø Approaching new markets Development of marketing Ø Development of new products and other activities Ø Ø Production organization analysis Lower Quality management, Costs certificate High priority Ø Organizational forms (e.g. profit centers) Ø Product standardization Planned strategies Ø Ø CIM Lead times reduction High delivery Ø Ø Product standardization Development of cooperation Ø readiness Ø Reduction of the manufacturing Cleaning of the product mix Ø depth Improvement of the Ø Ø Reduction of the hierarchical level s Employee qualifications Middle priority Ø Ø Quality management, certificate KAIZEN/CIM Ø Organizational forms (e.g. profit Big number centers) of products Derived demands/measures Ø Ø Derived demands/measures versus Reduction of the hierarchical the competition, management levels Ø deficit, know how Reduction of the Ø Self - assessment of the weaknesses manufacturing depth Low priority High quality Ø in lead times, costs A utomation Ø Ø Product mix Computer integration, CIM Ø Lack of personnel in sales Strategic PlanningPartner institution: Fraunhofer Institute für Produktionstechnik und Automatisierung (IPA)

12. Product development Share of revenue and costs 50 50 Costs share 45 40 40 Revenue share 35 35 30 30 25 25 Revenue in % 20 20 15 15 10 10 5 5 0 0 2. group of products 3. group of products 4. group of products 1. group of products Development and Design

13. Actions for different product groups Income shares % Product group 2 40 30 20 10 Product group 1 Increasing Income shares Cleaning of the product mix Marketing activities ! (new products which make Income are needed) Product group 4 Product group 3 0,35 0,7 1,05 1,4 Cost shares / Income shares

14. Restructuring strategy for company YPartner institution: SINTEF, Norway

15. 3 3 2 2 2 3 3 3 4 4 4 4 4 6 5 5 7 5 6 7 6 6 7 5 5 8 9 7 8 7 6 Fractal Company Approach 1 1 + cutting through 1 1 10 1 2 2 10 9 8 8 8 10 10 9 9 11 9 11

16. PROPOSAL 5A OFFICE AREA Assembly Final product store Store Paint shop Assembly Painting STORE Bend. ng Bend. ASSEMBLY Product I WELDING Welding Area (as a separate fractal) Cut Sheet metal BB store SAW SAW MILL L P P D S Product II Store Sheet store Saw Manual br. Saw Lathe Cutting Pres6 Drill Bending Press Cutter Bending tubes Bending tool Bending WELDING Electrostatic painting Store for finished products Assembly Kiln Layout OptimizationPartner institution: SINTEF, Norway

17. TEMPUS-Project: Quality Management at Universities in MacedoniaPartner institution: Vienna University of Technology and FraunhoferInstitutfürProduktionstechnik und Automatisierung (IPA)

18. Pre- and Post-calculationPartner institution: SINTEF, Norway

19. University Ss Cyril and Methodius Business Start-up CentrePartner institution: ADA, Austria • Dissemination of the entrepreneurial spirit among the students • Entrepreneurial training • Development of business plans • Support of the established companies

20. Project proposal for Sustainable development of SMEs

21. Some of the Problem areas

22. Expert forums – dedicated to the restructuring/improvement officials from the Government experts from the university community (from many countries) experts from the industry and services (domestic but also foreign ones) experts from the Macedonian Academy of Science and Art experts from national agencies experts from international institutions chambers of commerce labour unions donors for projects (SIDA, GTZ, ADA, JICA, USAID, , Embassies, . . .) association of the municipalities some companies ”Champions” students

23. Presentations today: Examples from projects Prof. Fahrni: Prof. Santarek: Prof. Veža:

24. Thank you for your attention