Integrating Social and Technical Systems MIT Auto Industry System Study (2003.001 v1.0)
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Industry Socio-Tech System Study MIT Auto Industry System Study (2003.001 v1.0) Integrating Social and Technical Systems MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 1 Overview and Expected Outcomes – Unit 1 Overview Welcome and overview The “big picture” Social and technical framework Exercise: Focus on the Seven Wastes and the 5 S’s Sample Socio-Tech Implementation Exercise: Cellular Design Socio-Tech Analysis Conclusion Expected outcomes Awareness of shifts in social and technical systems over time Understanding of the interdependency between social and technical systems Identification of potential “guiding principles” for designing, implementing and sustaining change in social and technical aspects of new work systems MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 2 The “Big Picture” Social Systems Technical Systems Craft Production Decentralized Enterprises Mastery of Craft Custom Manufacture Specialized Tools Mass Production Vertical Hierarchies Scientific management Assembly Line Interchangeable Parts Knowledge-Driven Network Alliances Flexible Specialization Work Team-Based Work Systems Information Systems Adapted from: “Knowledge-Driven Work: Unexpected Lessons from Japanese and United States Work Practices” (Oxford University Press, 1998) MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 3 Sample Social System Transformation Initiatives Socio-Technical Work Systems . . . . . . Early 1980s-1990s 1990s Six Sigma . . . . . . . . . . . . . . . . . . . . . . . Quality circles (off-line) Re-engineering . . . . . . . . . . . . . . . . . . . Work-out events (off-line) Late 1970s-1990s Total Quality Management . . . . . . . . . . 1950s-1980s Employee Involvement/QWL. . . . . . . . . EI/QWL groups (off-line) Semi-autonomous teams 1990s-present Black belt let project teams (off-line) Lean Production/Enterprise Systems . . Lean production 1950s-present teams/Integrated product & Process teams MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 4 Sample Social and Technical Systems Framework Physical / Natural Systems Economic Systems Social / Organizational Systems Structure & Sub-Systems Social Interaction Processes + + “Contextual” Systems * Political / Societal Systems Complexity Methods (Processes) + Uncertainty Capability & Motivation Machines (Equipment & New Technology) + Technical Systems Materials (Components & Supply Chain) Fragile/Robust Interrelationships Producing, Over Time, Outcomes for Multiple Stakeholders Customers . . . Workforce . . . Shareholders . . . Suppliers . . . Society Feedback * Note: Context boundaries vary as appropriate with the systems under consideration MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 5 Focus on Social / Organizational Systems Social Interaction Processes Structure & Sub-Systems Capability & Motivation Structure Groups Organizations Institutions Structure & Sub-Systems + Capability & Motivation Sub-Systems Communications Information Rewards & reinforcement Selection & retention Learning and feedback Conflict resolution Social Interaction Processes Individual knowledge, skills & ability Group stages of development Fear, satisfaction and commitment Leadership Negotiations Problem-solving Decision-making Partnership MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 6 Focus on Technical Systems Methods (Processes) Machines (Equipment & New Technology) Equipment and machinery Physical infrastructure Information technology Nano-technology, bio-technology, and other developments at the frontiers of science Machines (Equipment & New Technology) + Materials (Components & Supply Chain) Materials (Components & Supply Chain) Methods (Processes) Job design/office design Work flow/process mapping methods Value stream mapping Constraint analysis Statistical Process Control (SPC) System optimization and decomposition methods Assembly – Interchangeable parts and mass production systems Logistics – Just-InTime delivery (JIT) systems and Synchronous material flow systems e-commerce and supply chains MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 7 Focus on Contextual Systems Physical / Natural Systems “Contextual” Systems * Economic Systems Markets Political / Societal Incentives Economic Systems Systems Trade relations Public, private, and non-profit sectors Physical / Natural Industry structures Systems Product/firm/industry Atmospheric systems life-cycles Geo-thermal systems Externalities and other “market Aqueous systems failures” Biological systems Chemical systems Bio-chemical systems Sub-atomic systems Laws of physics * Note: Context boundaries vary as appropriate with the systems under Extra-terrestrial consideration systems + Political / Societal Systems Regulatory systems Standards and protocols Institutional arrangements History Cultures and subcultures Values and assumptions MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 8 Exercise: The Seven Wastes and the Five S’s The Seven Wastes Over Production Waiting Transportation Inventory Processing Motion Defects The Five S’s • • • • Simplify or Sort Straighten or Simplify Scrub or Shine Stabilize or Standardize • Sustain or SelfDiscipline How are social and technical systems interdependent when it comes to addressing the Seven Waste? How are they interdependent when it comes to the 5S’s? MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 9 Sample Socio-Tech Implementation WK1 WK2 WK3 WK4 WK5 WK6 WK7 WK8 WK9 WK10WK11WK12 WK13 WK14WK15WK16 FPS Team Vender Error Work Group Measurables Building Technical Proofing Work Group Selection Training Training Training Training Coordinator Selection Social Path Preliminary Work Cell Design FPS Measurables Input/Feedback System Design Socio-Tech Path SMF Inventory and Order Estimates FPS Measurables Input/Feedback System Staffing Finalized Work Cell Design Test Production Launch Technical Path Equipment Vender Interviews Equipment Vender Selection Rack Size Calculation Equipment and Rack Installation Error Proofing Installation Adapted from MIT Sloan Fellows thesis by Sean Hilburt MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 10 Exercise: Cellular Manufacturing Socio-Tech Analysis Step 1: Group Formation and Stakeholder Analysis Form small groups of 2-3 people (individuals at remote locations may link by phone), study the “current state” and “desired state” illustrations on a hypothetical cellular manufacturing intervention (next slide), and list stakeholders involved in your phase of this intervention. Note: Some groups will be assigned to “Preparing,” “Implementing,” and “Sustaining” phases of this intervention Step 2: Social Systems Identify the most important social system changes in this work system that are relevant to your phase of the intervention. Step 3: Technical Systems Identify the most important technical changes in this work system that are relevant to your phase of the intervention. Step 4: Integration and Guiding Principles Discuss ways in which the social and technical changes are or are not interdependent. Derive 1-3 “Guiding Principles” for implementing a systems change of this type. MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 14 Exercise: Cellular Manufacturing 1 MC G G G G 7 L D D D L L L L Machining 3 5 Center10 MC 8 6 M M M M Component Subassembly 9 Receiving, Incoming Inspection, and Shipping Injection Molding Center D MC D M D L G M G G M D G L Desired State G L MC M Heat Treat G D G Inspection and Test Center 11 D D Final Assembly Center 4 D G 13 12 Current State Injection Molding Center 2 L Receiving, Incoming Inspection, and Shipping G G D L MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Source: Lean Aerospace Initiative Fieldbook G G L D D D M M G L L D G M D Heat Treat G M G G M D LG M Work Flow Auto 2003.001 v1.0 9/12/2005 -- 15 Revisit the Social and Technical Systems Framework Physical / Natural Systems Economic Systems Social / Organizational Systems Structure & Sub-Systems Social Interaction Processes + + “Contextual” Systems * Political / Societal Systems Complexity Methods (Processes) + Uncertainty Capability & Motivation Machines (Equipment & New Technology) + Technical Systems Materials (Components & Supply Chain) Fragile/Robust Interrelationships Producing, Over Time, Outcomes for Multiple Stakeholders Customers . . . Workforce . . . Shareholders . . . Suppliers . . . Society Feedback * Note: Context boundaries vary as appropriate with the systems under consideration MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 16 Conclusion A unique historical moment The constant challenge and opportunity presented by social and technical interdependency A fragile foundation for a global transformation MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 17 Appendix: Japanese Model of Production System and “Humanware” J-I-T Production System Low Price Low Inventory Cost Growth Small Lot Even Flow Low Buffer Stock Low Labor Cost Profits High Quality Low Defects Reduced SetUp Time Continuous Adjustment of Labor Input SelfManagement of Work Standards SelfInspection Skill Adaptability Motivation Human Control Corporate Goals System Outcomes Key Features of Production System Key Areas of Human Resource Involvement Human Resource Effectiveness Source HaruoShimada and John Paul MacDuffie, Industrial Relations and“Humanware” (Slaon School of Management Work Paper, September, 1986) MIT Auto Industry Systems Study 2003.001 v1.0 Unit1: Integrating Social and Technical System © Joel Cutcher-Gershenfeld Auto 2003.001 v1.0 9/12/2005 -- 18
