Growing the
Lean Community
An LAI Plenary Conference
Manufacturing System Design:
An Overview
April 10, 2001
Presented By:
Tom Shields
MIT
Research Sponsored By LAI
Lean
Aerospace
Initiative
Objective
➢Present a new perspective on the role of
manufacturing in the enterprise
➢Offer a new concept of what it means to
take lean beyond the factory floor
➢Influence thinking on enterprise strategy in
a maturing industry
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Aerospace
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What is a Manufacturing
System?
➢ A manufacturing system is NOT just …
➢ The product, machines, tools, materials or assembly line
➢ A factory floor
➢ A cell, FMS, composite center or a job shop
➢ MRP, ERP, kanban or POLCA
➢ A manufacturing system IS all of the above plus …
➢ Workers
➢ Processes
➢ Suppliers
➢ Management
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Lean
Aerospace
Initiative
What is Manufacturing System
Design?
➢ Manufacturing system design is NOT just …
➢ Factory floor improvements
➢ Kaizan 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
Product Trends Affecting
Manufacturing System Design
➢Focus on affordability and life cycle support
➢Diminishing product differentiation between
competitors
➢Reduced advantages in competing with
product features or product performance
➢Basic physical design stable
➢Cost starting to be more important than
performance improvements
Is
Is the
the industry
industry approaching
approaching aa new
new phase?
phase?
Have
Have other
other industries
industries gone
gone through
through this?
this?
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Lean
Aerospace
Initiative
Model of Product and Process
Innovation
➢ Rate of product
innovation highest
during formative
years
➢ As product matures
rate of process
innovation overcomes
product innovation
➢ Very mature products
have low levels of
both product &
process innovations
Source: William Abernathy & James Utterback, 1978
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Lean
Aerospace
Initiative
Utterback’s Dynamics of
Innovation Model
Number of Firms
Emergence of the
Dominant Design
Fluid Phase:
Rapid technology
innovation,
many firms
founded
Transition Phase:
Shakeout, competition
shifts to process
Specific Phase:
Stable, small number of firms
competition shifts to price
Destabilizing changes in technology
or process can destroy industry!
Time
Source: Utterback, Dynamics of Innovation, 1994 as adopted by Hugh McManus , 2001
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Lean
Aerospace
Initiative
Number of Firms
Emergence of the
Dominant Design
Fluid Phase:
Rapid technology
innovation,
many firms
founded
Transition Phase:
Shakeout, competition
shifts to process
Specific Phase:
Stable, small number of firms
competition shifts to price
Destabilizing changes in technology
or process can destroy industry!
Time
Utterback’s Concept of
Dominant Design
➢
Dominant design - that design that
wins allegiance of the marketplace
and meets all known user needs
➢Dominant designs occur through
➢Refinement of product attributes
➢Possession of necessary collateral assets
➢Government regulations
➢Strategic maneuvering
➢Communication with users
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Lean
Aerospace
Initiative
Dominant Design and the
Aerospace Industry
➢ Dominant designs?
➢ General aviation
yes
➢ Commercial aircraft design
yes
➢ Commercial aircraft interiors/systems
no
➢ Military fighters flight characteristics
yes
➢ Military fighters of stealth designs
no
➢ Commercial/military engines
yes
➢ Commercial/military space launch vehicles
yes
➢ Commercial/military communication satellites
yes
➢ Military specialty satellites
no
➢ Industry as a whole……………………. predominantly yes
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Lean
Aerospace
Initiative
Implications of Post Dominant
Design (Transition Phase)
➢ Little product differentiation
➢ Incremental product innovation
➢ Acquisition cost becomes focus
➢ Operating costs more of a concern
➢ Mergers, acquisitions & exits
➢ Process innovation dominates
➢ Organizations become more rigid & hierarchical
➢ Less risk taking
== AEROSPACE
AEROSPACE INDUSTRY?
INDUSTRY?
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Aerospace
Initiative
Utterback’s Model and the
Aerospace Industry
30
Emergence of jet transport and
multi-role jet fighter-bomber
(the dominant design)
25
20
Number of Firms
Number of Major Aerospace Companies
Emergence of the
Dominant Design
Fluid Phase:
Rapid technology
innovation,
many firms
founded
Transition Phase:
Shakeout, competition
shifts to process
Specific Phase:
Stable, small number of firms
competition shifts to price
Government intervention
motivated by cold war
Destabilizing changes in technology
or process can destroy industry!
Time
15
10
Natural progression?
5
0
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
Year
Source: Data from Weiss/Amir, 1999: plot and notations adopted by Shields/McManus , 2000
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Lean
Aerospace
Initiative
Post Dominant Design
Industrial Role
➢Product differentiation no longer wins orders
➢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
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Lean
Aerospace
Initiative
Fine’s 3-D Concurrent
Engineering Model
PRODUCT
PROCESS
Performance
Specifications
Technology
And process
Planning
Recipe, Unit
Process
Product
Architecture, and
Make/buy
Time,
Space, and
Availability
SUPPLY
CHAIN
Details, strategy
Manufacturing
System, Make/buy
Source: Charles Fine, Clockspeed, Perseus Books, p. 146
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Aerospace
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Fine’s Model and the Aerospace
Industry in the Transition Phase
PROCESS
DESIGN
In a post dominant design
environment two relationships
predominate
➢Process has more leverage
than design on winning orders
SUPPLY
CHAIN
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➢Supply chain integration &
sourcing impacts enterprise
strategy and product cost more
than design
Design
Design must
must be
be much
much more
more
interactive
interactive with
with mfg
mfg && suppliers
suppliers
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Lean
Aerospace
Initiative
Is Manufacturing Important?
➢Industrial history lessons would indicate …
➢Process emphasis now has highest leverage
➢Customers more interested in life cycle costs
➢Role of manufacturing in this environment
➢Value recognized by product delivery & support
➢Other functions must support this value delivery
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Lean
Aerospace
Initiative
Executive Thoughts of
Manufacturing
➢Design is their bread and butter
➢Manufacturing is the cost of doing business
➢Outsource if not a core competency
➢Manufacturing not viewed as strongest
function
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Lean
Aerospace
Initiative
How can Manufacturing be Used
for Competitive Advantage?
➢Design is no longer the discriminating
factor for competitive success therefore …
➢Design should support manufacturing goals
➢Shift social regard from design to
manufacturing/industrial engineering
➢Process technology development yields
most benefits
➢Continual introduction of new processing
capabilities
➢Organizational elements to champion process
developments
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Lean
Aerospace
Initiative
New Meaning for “Lean
Beyond the Factory Floor”
➢Lean beyond the factory floor is NOT just:
➢Improving the requirements process
➢Improving the product development process
➢Developing long term supplier relationships
➢Lean beyond the factory floor IS the above plus:
➢Changing emphasis from product to process design
➢Designing to ensure ease of product realization
➢ Making suppliers partners in product realization
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Lean
Aerospace
Initiative
Conclusions
➢In a maturing industry product cost and life
cycle attributes predominate and are best
satisfied by process improvements
➢Lean beyond the factory floor means
shifting the enterprise focus to product
realization from product design
➢Enterprise strategy should change to
champion a manufacturing and extended
supplier partnership competitive strategy
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Lean
Aerospace
Initiative
Introduction to Rest of the
Session
➢Manufacturing strategy and design tools
➢Lockheed Martin JSF manufacturing
system design
➢Space vehicle production at TRW
➢Future research direction
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