Module 1: Integrating Social and Technical Systems Auto Industry Socio
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Auto Industry Socio-Tech System Study Module 1: Integrating Social and Technical Systems © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 1 1 Overview and Expected Outcomes – Module 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 © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 2 The “Big Picture” Craft Production Mass Production Knowledge-Driven Work Social Systems Technical Systems Decentralized Enterprises Custom Manufacture Mastery of Craft Specialized Tools Vertical Hierarchies Assembly Line Scientific management Interchangable Parts Network Alliances Flexible Specialization Team-Based Work Systems Information Systems Adapted from: “Knowledge-Driven Work: Unexpected Lessons from Japanese and United States Work Practices” (Oxford University Press, 1998) © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 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 © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 4 Social and Technical Systems Framework: Delivering Value to Multiple Stakeholders Stakeholders Social Interaction Processes Structure & Sub-Systems + Social Systems Methods & Processes Capability & Motivation Equipment & New Technology Outcomes for Multiple Stakeholders + Materials & Supply Chain Technical Systems • Customers • Workforce • Shareholders • Suppliers • Society Feedback © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 5 Focus on Social 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 © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 6 Focus on Technical Systems Methods & Processes Equipment & New Technology Equipment and machinery Physical infrastructure Information technology Nano-technology, bio-technology, and other frontiers of science Equipment & New Technology + Materials & 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 Materials & Supply Chain Interchangeable parts and mass production systems Just-In-Time delivery (JIT) systems Synchronous material flow systems e-commerce © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 7 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? © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 8 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 © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 9 Data on Technical Milestones 100% 90% 80% 70% 60% Green Yellow Red 50% 40% 30% 20% 10% 0% Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Adapted from MIT Sloan Fellows thesis by Sean Hilburt © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 10 Data on Social Milestones 100% 90% 80% 70% 60% Green Yellow Red 50% 40% 30% 20% 10% 0% Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Adapted from MIT Sloan Fellows thesis by Sean Hilburt © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 11 Socio-Tech Data 100% 90% 80% 70% 60% Green Yellow Red 50% 40% 30% 20% 10% 0% Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Adapted from MIT Sloan Fellows thesis by Sean Hilburt © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 12 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. © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 1 13 Exercise: Cellular Manufacturing MC G G G G G 7 L L D D D L L L L Machining 3 5 Center10 MC 8 6 M M M M Component Subassembly Receiving, Incoming Inspection, and Shipping Injection Molding Center D MC D M D L G M G G M D G MC M 9 L Desired State Heat Treat G D G Inspection and Test Center 11 D D Final Assembly Center 4 D G 1 13 12 Current State Injection Molding Center 2 L Receiving, Incoming Inspection, and Shipping M G G D G G G D L © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study distributedFieldbook through the Engineering Systems Learning Center, Engineering Systems Division, MIT Source: Lean Aerospace-Initiative D D D M G L L M D M G L Heat Treat G G M D LG M Work Flow Module 1 14 Revisit the Social and Technical Systems Framework Social Interaction Processes Structure & Sub-Systems + Social Systems Methods & Processes Capability & Motivation Equipment & New Technology Outcomes for Multiple Stakeholders + Materials & Supply Chain Technical Systems • Customers • Workforce • Shareholders • Suppliers • Society Feedback © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 15 Conclusion A unique historical moment The constant challenge and opportunity presented by social and technical interdependency A fragile foundation for a global transformation © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 1 16 Appendix: Japanese Model of Production System and “Humanware” “Humanware” Low Price Low Inventory Cost Growth Low Labor Cost Profits High Quality Low Defects J-I-T Production System Small Lot Even Flow Low Buffer Stock Continuous Adjustment of Labor Input Human Control Corporate Goals System Outcomes Reduced SetUp Time Key Features of Production System SelfManagement of Work Standards SelfInspection Key Areas of Human Resource Involvement Skill Adaptability Motivation Human Resource Effectiveness Source HaruoShimada and John Paul MacDuffie, Industrial Relations and“Humanware” (Slaon School of Management Work Paper, September, 1986) © Joel Cutcher-Gershenfeld and Thomas Kochan -- An MIT/Sloan Foundation Industry System Study - distributed through the Engineering Systems Learning Center, Engineering Systems Division, MIT Module 1 1 17
