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

2. 2 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

3. 3 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean What is Manufacturing System Design?  Manufacturing system “infrastructure” design  Manufacturing strategy  Operating policy  Partnerships (suppliers)  Organization structure details  Manufacturing system “structure” design  Buildings, location, capacity  Machine selection  Layout  WIP

4. 4 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean What is Manufacturing System Design?  Manufacturing system “infrastructure” design  Manufacturing strategy  Operating policy  Partnerships (suppliers)  Organization structure details  Manufacturing system “structure” design  Buildings, location, capacity  Machine selection  Layout  WIP Manufacturing System Design Tools Manufacturing Strategy Tools

5. 5 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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 : â Long term objectives â Strategies â Programs â Initiatives To help the business build and maintain a competitive advantage for future success

6. 6 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Why Have a Strategy? âAssures decisions based on long term success of the enterprise â Aligns manufacturing with business and corporate strategies âCreates an awareness of competition â Assures long term product, capability and process differentiation from competitors â Provides for clear communication between management levels â Focuses improvement activities on long-term success PROVIDES A BASIS FOR FUTURE SUCCESS

7. 7 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Outline  Manufacturing System Design  Manufacturing Strategy Tools  Manufacturing System Design Tools  Manufacturing System Design Framework

8. 8 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

9. Manufacturing Strategy Worksheet

10. 10 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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

11. 11 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Outline  Manufacturing System Design  Manufacturing Strategy Tools  Manufacturing System Design Tools  Manufacturing System Design Framework

12. 12 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Manufacturing System Design Tools  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

13. 13 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

14. 14 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Outline  Manufacturing System Design  Manufacturing Strategy Tools  Manufacturing System Design Tools  Manufacturing System Design Framework

15. 15 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

16. 16 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Stakeholders Enterprise Snapshot Business Unit Strategy Enterprise Needs Corporate Goals/Objectives/Strategy Management Manufacturing Operation Human Resources Services Consulting R&D Product Development Sales/Marketing E-commerce Investment Strategy Customer Support Partnerships/Alliances Commercial Military SocietyEmployeesMgmtGovt.SuppliersCustomersStockholders Product Strategy

17. 17 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Product Strategy Marketing Product Design Manufacturing Suppliers Product Product Strategy Strategy

18. 18 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean

19. Stakeholders Executive Management (Corporate Strategy) Middle Management (Business Strategy) Product Strategy Suppliers Product Design Manufacturing Marketing Requirements/Considerations/Constraints Manufacturing System Design/Selection Implement (pilot) Evaluate/Validate Full Rate Production [Interpret] [Seek approval] Modifications Optimizing Manufacturing System Design SocietyEmployeesMgmtGovt.SuppliersCustomersStockholders

20. Stakeholders Executive Management Middle Management [Business Unit] Product Strategy Suppliers ProductDesign Manufacturing Marketing Suppliers Product Design Manufacturing Marketing Requirements/Considerations/Constraints Manufacturing System Design/Selection Implement (pilot) Evaluate/Validate Full Rate Production [Interpret] [Seek approval] DFMA,IPT 3-DCE Concurrent Engineering VSM Kaizen Trial & Error Kaikaku - Miltenburg, - 3P, - 2D plots, - MSDD, - AMSDD - design Kaizen Manufacturing System Design Modifications Fine Tune Finalized Product Design Make/Buy Risk-sharing Partnerships - Analytical Tools, - Simulation Tools Customer Needs Technical Feasibility Feasible performance guarantees

21. Stakeholders Executive Management Middle Management [Business Unit] Product Strategy Suppliers ProductDesign Manufacturing Marketing Suppliers Product Design Manufacturing Marketing Requirements/Considerations/Constraints Manufacturing System Design/Selection Implement (pilot) Evaluate/Validate Full Rate Production [Interpret] [Seek approval] DFMA, IPT 3-DCE Concurrent Engineering VSM Kaizen Trial & Error Kaikaku - Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen Manufacturing System Design Modifications Fine Tune Finalized Product Design Make/Buy Risk-sharing Partnerships - Analytical Tools, - Simulation Tools Customer Needs Technical Feasibility Feasible performance guarantees

22. 22 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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 dynamics  Which component in Product Strategy has the highest leverage?  Manufacturing Process Improvement?

23. Executive Management Middle Management Product Development Manufacturing Organization Baseline Manufacturing/TPS Pilot Plant Full Rate Production Suppliers Current Situation

24. 24 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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

25. 25 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Manufacturing System Design Process

26. 26 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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

27. 27 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Product-Process Matrix  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

28. 28 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Product-Process Matrix

29. 29 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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

30. 30 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 3-DCE Model PRODUCT PROCESS SUPPLY CHAIN Performance Specifications Technology And process Planning Time, Space, and Availability Product Architecture, and Make/buy Manufacturing System, Make/buy Recipe, Unit Process Details, strategy

31. 31 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

32. 32 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Manufacturing Strategy Tools: Application  Focused Factory  Strategy Formulation, Factory Design, Operating Policy Design  Product-Process Matrix  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  Manufacturing Strategy Worksheet  Strategy Formulation, Competitive Analysis, Layout Selection, Changing existing system,

33. 33 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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

34. 34 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean Example of MSDD

35. 35 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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

36. 36 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace Initiative web.mit.edu/lean 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, ?, ?

37. 37 - MS/Shields - 041001 © 2001 Massachusetts Institute of Technology Lean Aerospace 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)