Value Creation Through Integration Workshop A Framework for Integration from the Manufacturing Perspective January 30, 2002 Presented by: Tom Shields MIT Lean Aerospace Initiative Contents Industrial product maturity impact on manufacturing What is manufacturing system design The manufacturing system design framework 2 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Post Dominant Design Industrial Role Product differentiation harder to achieve Product performance enhancements best satisfied by incremental improvements Acquisition and life cycle costs predominate Insertion of process technologies has highest leverage Use Use Manufacturing Manufacturing for for Competitive Competitive Advantage Advantage 3 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative How can Manufacturing be Used for Competitive Advantage? Product design alone is less of a discriminating factor for competitive success therefore … Design efforts should ensure producibility Manufacturing inputs should carry more weight Process technology development yields most benefits Continual introduction of new processing capabilities Organizational elements to champion process developments 4 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Elements for a Manufacturing System Design Framework A holistic view of manufacturing system design environment Visual depiction of “design beyond factory floor” ideas Manufacturing as part of the product strategy Manufacturing system design is strategy driven, not product design driven Combines multiple useful tools Provides insights into order and interactions Not prescriptive Can lead to innovative & new manufacturing system designs Shows the unending design cycle -- Continuous Improvement 5 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Manufacturing System Design 1. Manufacturing system “infrastructure” design Manufacturing strategy Operating policy Partnerships (suppliers) Manufacturing Strategy Tools Organization structure details 2. Manufacturing system “structure” design Buildings, location, capacity Machine selection Layout Manufacturing System Design Tools WIP 6 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Stakeholders Society Suppliers Customers Corporate Level Employees Stockholders Mgmt Govt. Design Manufacturing System (Corporate Strategy) [Seek approval] [Interpret] Business Unit (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 Lean Aerospace Initiative PRODUCT Product Strategy PROCESS Performance Specifications Technology And process Planning Recipe, Unit Process Product Design Details, strategy Product Design Manufacturing System, Make/buy Marketing Suppliers Product Strategy Marketing SUPPLY CHAIN Suppliers Product Architecture, and Make/buy Time, Space, and Availability Product Strategy Manufacturing Manufacturing 8 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Stakeholders Manufacturing System Design Corporate Level [Seek approval] [Interpret] 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 • • • • Rate Production Modifications Suppliers VSM Kaizen Trial & Error Kaikaku Stakeholders Manufacturing System Design Corporate Level [Seek approval] [Interpret] 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 • • • • Rate Production Modifications Suppliers VSM Kaizen Trial & Error Kaikaku 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 11 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean 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 12 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean Lean Aerospace Initiative Conclusions Manufacturing system design is more than the factory floor Manufacturing system design is strategy driven There is no one size fits all general manufacturing system design methodology Best results realized by interacting with design, suppliers and marketing Manufacturing is a competitive weapon in a maturing product industry 13 MS Shields - 1/30/02 © 2002 Massachusetts Institute of Technology web.mit.edu/lean