Production Systems for Focused Factory

by- Mandar Damle Under Guidance of Prof. N.R.Gilke Prof. R.Lekurwale

Content
Introduction Production system Types of Production systems Job shop production system Batch flow production system Flexible manufacturing system Operator paced line flow production system Equipment paced line flow production system Just in time production system Continuous flow production system Comparison of production systems Focused factory Manufacturing subsystems/levers Manufacturing outputs Competitive advantage Competitive strategy Contd
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Literature review Manufacturing priorities & Corporate strategy Competitive strategy Policy making Decision making Trade offs Factory within factory Conclusion

Introduction
The production systems are evolved from Job shop and batch production to mass production, equipment paced production to JIT principles. Every production system has its own characteristics which are suitable for particular product. We will see basic concepts of all production systems and focused factory concept. There are different subsystems or support systems which directly or indirectly affect the companys overall performance. This includes manufacturing policy, corporate strategy, manufacturing outputs, competitive strategy etc.

Production system
The methods, procedure or arrangement which includes all functions, operations required to accumulate the inputs, process the inputs and deliver the desired output. Inputs, Processes and output

Inputs

Conversion Processes

Output

Raw materials, labour, energy, machines etc.

Manual or mechanical operations, support activities like planning, control, testing etc.

Finished goods, services, profit, customer satisfaction etc.

Types of Production Systems

1. 2. 3. 4. 5. 6. 7. Job shop production system Batch flow production system FMS JIT production system Operator paced line flow production system Equipment paced line flow production system Continuous flow production system

Job shop production system

It produces several different products in small batches ranging from one to few Grinding Forging Lathes It has a functional or process layout >> Highly skilled workers High WIP inventory Painting Welding Drills

Highest possible flexibility Milling Rather than selling a specific product they sell its capabilities Office Foundry machines

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

Grinding Heat treatment

Drilling

Machining

Deburring Cell 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

Operator paced line flow Production 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 flow Production 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 process technology

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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 and manage It forces continuous improvement by identifying and eliminating wastes

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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 systems

Production System Job shop Product Many many Flow & Layout Extremely varied, Functional Varied with patterns, Cell or process Regular, line flow Equipment General purpose Employees Highly skilled Batch flow Many General purpose, some specialization Specialized, some flexibility Multiskilled

Operator paced line flow

Several to many

Multiskilled

Equipment paced line flow

Several

Regular, line flow

Special purpose

Unskilled

Continuous flow

One or few

Rigid, line flow

Special purpose, highly automated Flexible, highly automated General purpose, many specialized

Few, unskilled

FMS

Very many

Regular, line & cell

Few, unskilled

JIT

Many

Regular, line flow

Multiskilled

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Focused factory
Production facility organized around a specific, limited set of resources to provide narrow range of product and processes. -Most mass production facilities are designed as focused factories. Each macro factory has a small no of micro or focused factory Focused factory will outperform the conventional plant.

Manufacturing policies are consistent with corporate strategies A particular manufacturing output is decided
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Manufacturing subsystems Manufacturing levers in this Decision made

subsystem includes A Production system is divided Decisionsubsystems into six made in this subsystem Decision made in this Decision made in this -flat or hierarchical Decision includes made in this Human resources subsystem includes subsystem includes subsystem -importance of line & staff Decision made in this includes -how managers are selected -Skilled subsystem includes -push -no. of suppliers & & unskilled or pull control system Organization structure & controls -how are -amount automation decision made employeesof -size of various inventories distributors -use of -to develop technologyteams -long term -training & like raw material, WIP, relationships & -responsibility & authority at internally Sourcing development purchased -location of facilities orfinished goods partnerships each externally -promotion &-when level of organization -facilities are large or small maintenance is done -responsibility of design, cost, -machines securities are general -capacity planning quality given to suppliers -how Production planning & controlpurpose policy to scheduled design or specialized -capability of production -procedure-wages for deciding changes & new products into -factory layout support departments production production of part in-house or -quality practices Process technologysourced Facilities
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Manufacturing Outputs
Standard products with very narrow range win orders on price Value=f(Q,D,P,F,X)

Cost Quality Market qualifiers Delivery Performance Flexibility Innovativeness Not really required

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Competitive Advantage
Cost leaderships-Lower cost than competitors Differentiation-Ability to offer something different from competitors Best value- Better products at same price or same products at lower 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 priorities<>Corporate strategy Competitive strategies Policy making

Decision making
Trade-offs

Plant within plant

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Manufacturing priorities<>Corporate strategy

Manufacturing functions best when its facilities, Consistency> technology, and policies are consistent with recognized priorities of corporate strategy 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 production system Operating decisions such as capacity, technology, workforce issues & quality systems must be carefully matched with the organizations key competitive priorities
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Competitive strategies
low cost plant can be disaster if it has Instead of focusing first on strategy and then sacrificed too much in Quality, moving to define manufacturing task & next delivery, flexibility etc to get its cost Strategy first> turning to systems design in manufacturing policy, down management tend to employ concept of There are many ways to compete other than low less effective production which is cost> higher quality in standard product or product having features unavailable in competing product Superior quality> ability to handle difficult & non standard orders, to lead in new product introduction

Product flexibility>

High volumes

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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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what we must accomplish what in manufacturing in the 1- COMPETITIVE 5-ECONOMICS others cost SITUATION Cost structures, order to compete key are Number, Kind, Trends margins, Volume change, doing Strategies & Tactics of Product change competitor how can we compete
3-COMPANY STRATEGY

economic constraints and opportunities 6-TECHNOLOGY common to Processes, Equipment, Materials Trends industries

constraints and 4-Task of company opportunities manufacturing 8- COMPANY function MANUFACTURING POLICIES what we have or can scale of common to Productivity, service, Span of process, Quality process, & get to compete choice of processtechnology

with
2-COMPANY INVENTORY Skills, resources, Objectives, Products, Equipment, Technical expertise 7-EVALUATION Company skills, resources etc.

equipment, plant location

Controls of cost , quality, flows, our resources inventory evaluated 9-REQUIRMENTS and MET BY COMPANY VICE TO BE time
PRESIDENT AND MANAGEMENT

10- Manufacturing systems and procedures

11- Manufacturing controls

production planning, use of inventories, use of standards etc.

13-RESULTS Productivity, service, Quality

how we should set ourselves up to match resources, economics and technology to 12Manufacturin meet the task g operations required by our company strategy
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Decision making
Policy around one task> The professional quite naturally seeks to maximize their Wage production contributions & justify their positions. Obviously these inventory to each control to system may minimize objectives to generally in conflict. decision maximize be set up are

stock levels looks short lead emphasize sensible to high times Better decision making: No one can answer all the the productivity questions and problems with one formula or point of view professional but surely we can improve on notion that production specialist in system need only be productive and efficient. Top field. his

management can manage manufacturing if they engage in making manufacturing policy

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Trade-offs
A factory cannot perform well on every yardstick>+ Manufacturing manger has contrasting features demand conflicting nicely aligned his manufacturing tasks & hence different organization according to manufacturing policies corporate priorities- he is ` Same thing true for manufacturing, variables of cost ,time, subjected to pressure from quality, technological constraints, customer satisfaction place limit marketing because of on what management can do, force compromises and demand an customer complaints about explicit recognition of multitude of trade offs and choices quality or delivery time. Without sufficiently examining the trade offs he It is important attempts toat which outputs will be provided. the level shore up performance along these dimensions. 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 to become more effective & experience in the task required for success Five plants The goal of manufacturing strategy for FWF is to determine the levels of cost, quality, delivery & flexibility that are required & the actions 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 company requires for having competitive advantage. Empirical study in India can be future scope of work. Case study in Indian Automobile industry.

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References
1.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.113121 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.307323. 7. Safsten K., Winroth M., 2002. Analysis of the congruence between manufacturing strategy 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.

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