Development of production strategy with focus on flexibility. Marco Semini, SINTEF

Transcription

1 Development of production strategy with focus on flexibility Marco Semini, SINTEF 1

2 Production strategy environment strategy Cost Quality Availability Features/innovativeness Environmental performance environment Complementors Technology Production strategy (Beckman and Rosenfield 2008) Vertical Integration Process technology Capacity Facilities Sourcing processes Supply chain coordination Information technology Organisational capabilities Competitors Products Suppliers Customers Production system 2

3 Product-process matrix Product Low High Volume Variety High Low Project Jobbing Process Batch Mass Continuous (Hayes and Wheelwright 1979) 3

4 Internal and external environment strategy Cost Quality Availability Features/innovativeness Environmental performance environment Complementors Technology Supply Production strategy (Beckman and Rosenfield 2008) Vertical Integration Process technology Capacity Facilities Sourcing processes Supply chain coordination Information technology Organisational capabilities Product Competitors Products Demand Suppliers Customers Process Production system 4 Workforce and equipment

5 How to respond to Reduce itself Buffer against Develop flexible operations 5

6 How to respond to environment strategy Cost Quality Availability Features/innovativeness Environmental performance environment Complementors Technology Supply Production strategy (Beckman and Rosenfield 2008) Vertical Integration Process technology Capacity Facilities Sourcing processes Supply chain coordination Information technology Organisational capabilities Product Competitors Products Demand Suppliers Customers Process Production system 6 Workforce and equipment

7 Flexibility in manufacturing Capability to be responsive or readily-adjustable to changing conditions Product flexibility Ability to introduce new or modified products Mix flexibility Ability to produce a wide range or mix of products Volume flexibility Ability to change the level of output Delivery flexibility Ability to change the delivery dates (Slack 2010) 7

8 How to develop flexible operations Flexible process type Flexible process technology, such as FMS Short setup and cycle times Postponement (Upstream position of the CODP) Extra capacity Flat organizational structure, with high level of autonomy and individual responsibility, team work Cross-trained workforce Accounting and information systems Appropriate supplier and customer relationships Mass customization Quick response manufacturing Fisher's (1997) responsiveness Agility Lean Total quality management 8

9 Product-process matrix Product Low High Volume Variety High Low Project Jobbing Process Batch Mass Continuous (Hayes and Wheelwright 1979) 9

10 How to develop flexible operations Flexible process type Flexible process technology, such as FMS Short setup and cycle times Postponement (Upstream position of the CODP) Extra capacity Flat organizational structure, with high level of autonomy and individual responsibility, team work Cross-trained workforce Accounting and information systems Appropriate supplier and customer relationships Mass customization Quick response manufacturing Fisher's (1997) responsiveness Agility Lean Total quality management 10

11 How to develop flexible operations Flexible process type Flexible process technology, such as FMS Short setup and cycle times Postponement (Upstream position of the CODP) Extra capacity Flat organizational structure, with high level of autonomy and individual responsibility, team work Cross-trained workforce Accounting and information systems Appropriate supplier and customer relationships Mass customization Quick response manufacturing Fisher's (1997) responsiveness Agility Lean Total quality management 11

12 How to develop flexible operations Flexible process type Flexible process technology, such as FMS Short setup and cycle times Postponement (Upstream position of the CODP) Extra capacity Flat organizational structure, with high level of autonomy and individual responsibility, team work Cross-trained workforce Accounting and information systems Appropriate supplier and customer relationships Mass customization Quick response manufacturing Fisher's (1997) responsiveness Agility Lean Total quality management 12

13 How to respond to 5S Supplier development Flow and takttime Supermarkets Reduce itself LEAN Buffer against SMED Lead time reduction Quality circles Supplier integration Develop flexible operations 13

14 Flexibility: Why, what and how? WHY Variability Demand Supply Product Process Equipment and workforce WHAT Flexibility types Product flexibility Mix flexibility Volume flexibility Delivery flexibility HOW Flexible production strategy Flexible process type Flexible process technology Short lead times Postponement Extra capacity Flat organization and team work Cross-trained work force Activity-based costing Effective use of IT Appropriate supplier and customer relationships 14

15 Company Type(s) of flexibility (what) Response mechanisms (how) Case studies Volvo Volume flexibility Employee contracting Flexible, problem-solving work force Glen Dimplex Benteler (spare parts business) Ulstein Tine Volume flexibility Mix flexibility Mix flexibility Delivery flexibility Volume flexibility Product flexibility Volume flexibility (demand and supply) Mix flexibility Product flexibility Lead time flexibility Team organization Flexible lines Process and lead time control Lead-time reductions Focus Cost control Market understanding Modularization and standardization Reduce investments in fixed assets Reduced planning efforts Individual and team responsibility Enter new segments Differentiated production planning Assessment of uncertainty 15