FUTURE TRENDS IN PRODUCTION RESEARCH: JAPANESE (MAINLY AUTOMOBILE PRODUCTION) PERSPECTIVE

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1 FUTURE TRENDS IN PRODUCTION RESEARCH: JAPANESE (MAINLY AUTOMOBILE PRODUCTION) PERSPECTIVE KATSUHIKO TAKAHASHI (HIROSHIMA UNIVERSITY) Plenary Panel: Future Trends on Production Research ICPR 23, 2015/8/5, 13:30-15:30, Manila, Philippines 1

2 WHAT IS PRODUCTION RESEARCH? Definition of Production a process of combining various inputs (include plans, know-how) in order to make something for consumption (the output). the act of creating output, a good or service which has value & contributes to the utility of individuals (and societies). Topics of Production Research (IJPR) Innovation management, design of products, processes, production & logistics systems (P&LS) Production economics, the essential behaviour of P&LS Manufacturing strategy, policy formulation and evaluation Fundamental techniques for the design, measurement or operation of P&LS Issues in Production and Production Research Depend on the time, place, & occasion (TPO) Discuss from Japanese Perspective, mainly Automobile Industry Predict Future Trends from Past & Recent Production & Production Research 2

3 WHAT WAS THE PAST CONDITION? (BEFORE 1990) Market: Growing domestic + Overseas (Mainly USA) Tr3 Tr2 Tr1 Mkt Domestic Production sites: Domestic Materials: Imported Labors: Domestic, full time, permanent Equipment: Special equipment but not so automated. Products: Appropriate quality, Low price, Reliable products Information: CAD, CAM, CIM 3

4 WHAT WERE THE PAST ISSUES IN PRODUCTION? Improving quality Original quality was low. Quality Control was introduced from USA only after Oil crisis forces to improve fuel efficiency. Improving productivity Handicap of using imported materials and export products forces to improve productivity. Improving efficiency of equipment Overseas Tr3 Tr2 Tr1 Mkt Domestic For improving productivity, efficiency of equipment should be improved too. Overseas Utilizing valuable human resources Most workers were happy to work for improving their working life. 4

5 WHAT WAS PRACTICED AND RESEARCHED IN PRODUCTION? Total Quality Management (TQM) Statistical Quality Control PDCA cycle (Deming wheel, Shewhart cycle) Quality Function Deployment Ishikawa Diagram (Fishbone diagram, Cause & Effect diagram) QC circle Toyota Production System (TPS) Just-in Time (Kanban system, Production smoothing, Small lot production, Multi-skill workers) Autonomation (Jidoka) (Improvement activities by small group, Visual control) U-shape line, Sequencing of mixed model production line Total Productive Maintenance (TPM) 5S, Waste reduction, Kaizen, Risk map, Maintenance policy 5

6 WHAT IS THE RECENT CONDITION? (THIS 25 YEARS AFTER 1990) Market: Matured Global and Growing Domestic + Overseas (developed + developing countries) Production sites: Domestic + Overseas Materials: Imported + Globally procured Overseas Labors: Domestic + Global, full time + part time, permanent + non permanent Equipment: Special and automated equipment (Robots for Painting, Welding, Assembly). Products: High Quality, Appropriate Price, Reliable, Green Products with New Power (HV, EV, PHV) and New Functions (Car Navigation, Auto Cruise, Regenerative Brake, Air Bag) Information: Digital Manufacturing (++ Simulation) Domestic Overseas 6

7 WHAT ARE THE RECENT ISSUES IN PRODUCTION? Complicated Products For satisfying enhanced customers requests, no. of parts increases. Tr3 Tr2 Tr1 Mkt Modularization For simplifying supply chain for the complicated products, reduce no. of components by increasing modularization. Globalization For satisfying global customers, global production sites of parts and products and the global supply chain increase. Green production Global market and demand approach to the global capacity Finite planning and production should be considered 7

8 WHAT ARE PRACTICED AND RESEARCHED IN PRODUCTION? Technology Transfer Smooth setup of overseas plant Selecting and developing suppliers Human resource development Transfer Tr3 Tr2 Tr1 Mkt Transfer Global Supply Chain Management Global procurement and transportation increase Disruption, risk, tarif problems increase Decreasing lead time, e-kanban Collaboration of supplier Supplier park, Modular consortium, JIT supply Competition, Cooperation, Co-opetition Green Production Reduce, Reuse, Recycle of resources, Reverse logistics, 8

9 WHAT WILL BE THE FUTURE CONDITION? (NEXT 25 YEARS) Market: Matured Global Domestic + Overseas (almost developed) Production sites: Global Materials: Imported + Globally procured Labors: Global, full time + part time, permanent + non permanent Equipment: Special Equipment and Highly Automated (Robots for Painting, Welding, Assembly, Process Control) Products: High Quality, Low (EV) and Appropriate Price, Reliable, Green Products with New Power (FCV) and New Functions (Car Navigation, Auto Drive) Information: Industry IoT + Big Data Tr3 Tr2 Tr1 Mkt Overseas Domestic Overseas 9

10 WHAT WILL BE THE FUTURE ISSUES IN PRODUCTION? Two kinds of Products Commodity Products (e.g. EV) with appropriate quality and price Highly Complicated Products (e.g. FCV) with high quality and price Fluctuating Demand Diversified products in Matured Market Short product life cycle Unstable and fluctuating demand Global Architectures and Modular Design For responding to the diversified needs, common design and less no. of parts are requested. 10

11 WHAT WILL BE PRACTICED AND RESEARCHED IN PRODUCTION? Production Cell, Cell Line Hybrid production cell and Reconfigurable Manufacturing Systems is necessary for fluctuating demand BTO, ATO, ETO Integration of MTS and MTO is valuable for quick response of diversified demand Automatic Process Control For managing global supply chain, process data in global sites in collected. Global Control Center in HQ monitors global production sites and directs action if it necessary. IoT for Planning and Control of Reconfiguration of Production Systems For responding to demand changes, not only production plan but also efficient reconfiguration for the production plan will be considered. 11

12 ADDITIONAL PRACTICE AND RESEARCH TO BE CONSIDERED Previous activities (Kaizen, continuous improvements) Mainly reducing customer costs. Increasing customer values is an issue in marketing. Value Creation Activities for increasing customer satisfaction and customer delight Examples of increasing customer delight: Attractive reduction of lead time Producing products in front of customers (like Sushi Restaurant) Tracing and monitoring production of the product ordered 12