Business Process Reengineering Office Furniture Industry. Team 4 Alejandra Valeria Kevin Karen

Transcription

1 Business Process Reengineering Office Furniture Industry Team 4 Alejandra Valeria Kevin Karen

2 Introduction The Furniture Industry is classified as one of the most important manufacturing industries in the world. Modular furniture industries are normally small or medium size. Shorten lead times and accurate deliver time are the most important things to achieve competitive advantage. Because of the changing economic environment, these companies have a motivation to adopt BPR for reengineering their original process Cost reduction Better performance Customer satisfaction Flexibility Innovation

3 Office Furniture Industry Challenges Furniture manufacturers share many common characteristics Challenges Mass customization Reduced lead times Sales automation Access to business information Technology integration Highly Highly competitive competitive Price Price and and delivery delivery critical critical Demand Demand driven driven flexible flexible manufacturing manufacturing Variety Variety of of products products Variety Variety of of finishes finishes highly highly customized customized Labor Labor intensive intensive Large-scale Large-scale automation automation difficult difficult to to achieve achieve Low Low stock stock holding holding Long Long lead lead times times Solutions Implementing ERP system Modifying the manufacturing process to create high flexibility Moving towards mass customization approach Providing a customized service

4 Key elements to achieve competitive advantage Improve designing process innovative methods such as digital design Reduce complexity of product designs reduce product offering without eliminating different options such as colors and configurations to achieve mass customization Cross-functional integration of different areas of the company ERP system Implementation of Just-in-time in the logistics process decrease inventory and improve productivity

5 Case Study Research Objectives: Try to improve existed problems, simplify manufacturing process, reengineer original business process and shorten the lead time. Sample Company: Herman Miller SQ&A Subsidiary specialized on Office Furniture Core competences: Innovation and customer service

6 As Is Design Process Mockups, 2D views Old catalogue & show rooms

7 Improvement of designing process & Reduction of complexity Design software 3D view

8 Improvement of designing process & Reduction of complexity A customer applies for several kinds of designs which have been well arranged and choreographed. More standardized designs with different options (color & configuration)

9 As is business model

10 As Is Order Fulfillment Process

11 Information Model Product Style - Name - Quantity - Price - Color - Style Human Resource - Name - Department - Function - Address - Work Schedule Manufacturing Information Product Style Material Requirement Inventory Information Machine Requirement Human Resource Manufacturing due date Invoice - Invoice code Order Information

12 Organization Model

13 As Is Simulation Parameters Initial quantity of objects (Customer s request)= 10 Simulation Time = 2 months Activity Average Time Selecting furniture 0.6 Designing 1 Designing Verification 1 Checking Inventory Status 2 Checking Manufacturing Capacity Checking delivery Schedule 1 1 Verifying Costs 1 Offer confirmation 1 Order Placement 0.25 Manufacturing 7.5 Delivery and Installation 1 Total time (Days) 17.35

14 As Is Behavior Model - Order fulfillment

15 As Is Result Analysis Activity Flowing objects Selecting furniture 10 Designing 10 Designing Verification 10 Checking Inventory Status Checking Manufacturing Capacity Checking delivery Schedule Verifying Costs 5 Offer confirmation 4 Order Placement 3 Manufacturing 2 Delivery and Installation 2 Total time (Days) 81.75

16 As Is Result Analysis Activity Time * # Objects (t)

17 As Is Result Analysis Most time consuming Activities Average time # Objects Total Designing Design Verification Checking Inventory Status Manufacturing

18 As-Is Manufacturing Process Main products: bookcases, cabinets, desks, chairs, tables. The flow present in the modular furniture industries is lineal. The manufacturing plant works with assembly lines, supplied with semifinished products and produce finished modules.

19 Modularity Common components are used in the design of a product The modules can be combined in different ways.

20 As-Is Manufacturing Process Yes No Production schedules based on product categories (i.e. chairs, desks) that were directly to warehouses.

21 As Is Simulation Parameters - Manufacturing Activity Average Time Verifying manufacturing order 0.5 Checking availability of materials 1 Ordering materials to suppliers 3 Subassembly Subassembly Subassembly Transportation of materials from warehouse 0.3 Final assembly 0.9 TOTAL TIME (days) 7.5

22 As-Is Behavior Model - Manufacturing Process

23 To be business model

24 To-Be Manufacturing Process Improvements Mass customization approach The means for achieving customization at mass production costs Flexible computer-aided manufacturing systems Modularity (mass production costs) + Cosmetic Customization Order-center approach Just in Time and Kanban systems

25 Improvements in Manufacturing M Process Combining Kanban systems and Just In Time production, one complete order can be built at a time.

26 To-Be Manufacturing Process Reconfiguration of Subassembly stages, to produce one order at a time

27 To Be Simulation Parameters - Manufacturing Activity Average Time Verifying manufacturing order 0.2 Checking availability of materials 0.2 Subassembly Subassembly Subassembly Final assembly 0.9 TOTAL TIME (days) 3.1 From 7.5 to 3.1 days

28 To-Be Manufacturing Process JIT and Kanban

29 To Be Order Fulfillment Process ERP system y FINANCE AND ACCOUNTING ERP SYSTEM y SALES AND DISTRIBUTION Job material requirements and availability Job status and material requirements Inventory availability and status Assembly capacity Job sequencing Shipping schedules and installation JIT material s flow y MATERIALS MANAGEMENT

30 To Be Order Fulfillment Process

31 To Be Behavior Model Order Fulfillment process

32 To Be Simulation Parameters Initial quantity of objects (Customer s request)= 10 Simulation Time = 2 months Activity Designing process Verifying order (ERP) Confirming offer Placing order Manufacturing Delivery and Installation TOTAL TO-BE Model Time (days)

33 To Be Simulation Parameters (comparison) Activity Designing process Verifying order (ERP) Confirming offer Placing order Manufacturing Delivery and Installation TOTAL TO-BE Model Time (days)

34 To Be Result Analysis Activity Flowing objects Designing Process 10 Verifying offer (ERP) 10 Confirming offer 10 Placing order 8 Manufacturing 8 Delivering order 8 Total 54

35 To Be Result Analysis Activity Time * # Objects (t)

36 Conclusions A process reengineering is a must-be-done task for every company that wants to be competitive. Tools such as INCOME 4 can be useful to identify bottlenecks to work on. A BPR process can definitely cut down costs and improve customer satisfaction, as shown by the results of our project. (From days to fulfill and order to 6.85 days). The implementation of an ERP system is critical to improve the flow of information and accelerate the movement of the whole business process. Modular manufacturing and JIT systems, combined can be a successful tool to reduce production times, eliminate unnecessary inventories and reach the benefits of a mass customization.