Lean
Aerospace
Initiative
Outline
Manufacturing System Design
Manufacturing Strategy Tools
Manufacturing System Design Tools
Manufacturing System Design Framework
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
What is Manufacturing System
Design?
 Manufacturing system “infrastructure” design
 Manufacturing strategy
 Operating policy
 Partnerships (suppliers)
Manufacturing
Strategy Tools
 Organization structure details
 Manufacturing system “structure” design
 Buildings, location, capacity
 Machine selection
 Layout
Manufacturing
System Design
Tools
 WIP
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Lean
Aerospace
Initiative
What is Manufacturing Strategy?
A “game plan” for the manufacturing organization to
keep itself aligned with the Corporate strategy
It consists of :
 Long term objectives
 Strategies
 Programs
 Initiatives
To help the business build and maintain a
competitive advantage for future success
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Lean
Aerospace
Initiative
Why Have a Strategy?
 Assures decisions based on long term success of the
enterprise
 Aligns manufacturing with business and corporate
strategies
 Creates an awareness of competition
 Assures long term product, capability and process
differentiation from competitors
 Provides for clear communication between management
levels
 Focuses improvement activities on long-term success
PROVIDES A BASIS FOR FUTURE SUCCESS
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Lean
Aerospace
Initiative
Outline
Manufacturing System Design
Manufacturing Strategy Tools
Manufacturing System Design Tools
Manufacturing System Design Framework
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Lean
Aerospace
Initiative
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
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Manufacturing Strategy
Worksheet
Lean
Aerospace
Initiative
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
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web.mit.edu/lean
Lean
Aerospace
Initiative
Outline
Manufacturing System Design
Manufacturing Strategy Tools
Manufacturing System Design Tools
Manufacturing System Design Framework
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
Outline
Manufacturing System Design
Manufacturing Strategy Tools
Manufacturing System Design Tools
Manufacturing System Design Framework
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
Enterprise Snapshot
Society Suppliers Customers Stakeholders
Employees Stockholders Mgmt
Govt.
Enterprise Needs
Corporate
Goals/Objectives/Strategy
Business Unit Strategy
Product Strategy
Partnerships/Alliances
Product Development
Sales/Marketing
R&D
Customer Support
Investment Strategy
Commercial
Management
Consulting
Manufacturing
Operation
Services
E-commerce
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Military
Human Resources
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Lean
Aerospace
Initiative
PRODUCT
Product Strategy
PROCESS
Performance
Specifications
Technology
And process
Planning
Product Design
Recipe, Unit
Process
Time,
Space, and
Availability
Manufacturing
System, Make/buy
Product
Strategy
Marketing
SUPPLY
CHAIN
Suppliers
Product
Architecture, and
Make/buy
Details, strategy
Manufacturing
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Lean
Aerospace
Initiative
Corporate Strategy
Buisness Strategy
Producut Strategy
Business Strategy
Product Strategy
Product Design Strategy Manufacturing Strategy
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Business Strategy
Product Strategy
Marketing Strategy
...
...
Supplier (Strategy)
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Stakeholders
Society
Suppliers Customers
Executive Management
Employees Stockholders Mgmt
Govt.
Manufacturing System Design
(Corporate Strategy)
[Seek approval]
[Interpret]
Middle Management (Business Strategy)
Product Strategy
Product Design
Manufacturing
Marketing
Requirements/Considerations/Constraints
Manufacturing System Design/Selection
Implement (pilot)
Optimizing
Evaluate/Validate
Full Rate Production
Modifications
Suppliers
Stakeholders
Manufacturing System Design
Executive Management
[Seek approval]
[Interpret]
Middle Management [Business Unit]
Product Strategy
Product Design
Make/Buy
Risk-sharing Partnerships
Manufacturing
DFMA,IPT
3-DCE
Concurrent Engineering
Marketing
Customer Needs
Technical Feasibility
Feasible performance guarantees
Requirements/Considerations/Constraints
- Miltenburg, - 3P, - 2D plots,
- MSDD, - AMSDD - design Kaizen
Manufacturing System Design/Selection
- Analytical Tools,
- Simulation Tools
Implement (pilot)
Fine Tune
Evaluate/Validate
Finalized Product Design
Modifications
Suppliers
• VSM
• Kaizen
• Trial & Error
• Kaikaku
Full Rate Production
Stakeholders
Manufacturing System Design
Executive Management
[Seek approval]
[Interpret]
Middle Management [Business Unit]
Product Strategy
Product Design
Make/Buy
Risk-sharing Partnerships
Manufacturing
DFMA, IPT
3-DCE
Concurrent Engineering
Marketing
Customer Needs
Technical Feasibility
Feasible performance guarantees
Requirements/Considerations/Constraints
- Miltenburg, - 3P, - 2D plots,
- MSDD - AMSDD - design Kaizen
Manufacturing System Design/Selection
- Analytical Tools,
- Simulation Tools
Implement (pilot)
Fine Tune
Evaluate/Validate
Finalized Product Design
Modifications
Suppliers
• VSM
• Kaizen
• Trial & Error
• Kaikaku
Full Rate Production
Lean
Aerospace
Initiative
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?
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Executive Management
Current Situation
Middle Management
Product Development
Suppliers
Manufacturing Organization
Baseline Manufacturing/TPS
Pilot Plant
Full Rate Production
Lean
Aerospace
Initiative
What Should the Manufacturing
System Design Consider?
Stakeholder
Primary Need
Stockholders
Return of investment
Customers
Product performance, quality & cost
General public
Satisfaction of needs
Business
Low risk participation, steady business
Employees
Employment stability
Hourly
Satisfactory salary, working conditions
Management
Promotion opportunities
Suppliers
Stable business
Society/Community/Environment
Responsible behavior
Government
Capability, tax base
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Aerospace
Initiative
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Manufacturing System Design
Process
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
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
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Aerospace
Initiative
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Product-Process Matrix
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
3-DCE Model
PRODUCT
PROCESS
Performance
Specifications
Technology
And process
Planning
Recipe, Unit
Process
Product
Architecture, and
Make/buy
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Time,
Space, and
Availability
Details, strategy
Manufacturing
System, Make/buy
SUPPLY
CHAIN
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Lean
Aerospace
Initiative
9 Components of Strategy
- Fine & Hax
 Facilities
 Capacity
 Vertical Integration
 Processes and Technologies
 Scope and New Products
 Human Resources
 Quality
 Infrastructure
 Vendor Relations
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Lean
Aerospace
Initiative
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,
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
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Example of MSDD
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Lean
Aerospace
Initiative
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
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Lean
Aerospace
Initiative
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, ?, ?
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Lean
Aerospace
Initiative
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)
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