International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
Industrial Engineering
1
LITERATURE ................................................................................................................. 2
2
CASE STUDY 1................................................................................................................ 2
3
DEFINITIONS ................................................................................................................. 3
3.1
3.2
3.3
INDUSTRIAL ORGANIZATION ....................................................................................... 3
SYSTEMATIC OF INDUSTRIAL ENGINEERING ................................................................ 4
FUNCTIONS OF IE IN ENTERPRISES .............................................................................. 5
4
DOCUMENTATION OF A PRODUCT........................................................................ 5
5
ROUTING PLAN / MASTER ROUTE SHEET (FERTIGUNGSPLAN) ................... 6
5.1
6
BUILDING OF ROUTING ................................................................................................. 7
CASE STUDY 2................................................................................................................ 9
6.1
6.2
6.3
6.4
6.5
7
CREATE A TEAM CHART FOR THIS TEAM .................................................................... 10
WHICH PRODUCT DOCUMENTATIONS ARE NEEDED FOR THE TRANSFER? ................... 11
DEFINE THE POTENTIAL STEPS FOR THE TRANSFER .................................................... 11
DEFINE A MILESTONE PLAN FOR THE TRANSFER ........................................................ 11
TRANSFER OF SPECIAL EQUIPMENT AND FIXTURES TO SIGNA .................................... 11
METHODS TO FIND OUT STANDARD TIMES ..................................................... 12
7.1
8
STANDARD COST CALCULATION
................................................................................ 13
WORK ORGANIZATION............................................................................................ 14
8.1
8.2
DIRECT DEPARTMENTS ............................................................................................... 14
INDIRECT DEPARTMENTS ........................................................................................... 23
9
MATERIAL MANAGEMENT..................................................................................... 24
10
ORDER PROCESSING AND PRODUCTION PLANNING & CONTROL (PPC)26
10.1
TASKS, OBJECTIVES AND DEFINITION OF PPC........................................................... 26
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
1 Literature
-
Manufacturing Handbook of Best Practices (Jack B. Revelle)
Arbeitswissenschaft (H. Luczak)
The Memory Jogger
2 Case study 1
Due Dilligence “Behrendson AB(GmbH)”/Sweden
goal:
•
•
•
check of potential acquisition
sign confidentiality agreement
find recommendation to Senor Management (Æ YES or NO)
Create a team that will try to achieve the goals.
team functions:
- finance
- marketing
- industrial engineering
- sales
- R&D
topics, the industrial engineer has to deal with:
- organization
- new product development
processes (NPD)
- skills / training methods (of
personal)
- wages / incentives (Prämien)
- lead times
- personel (Shifts, employees,
White-Collar-Workers[WCW],
BCW)
- maintenance
- environment
- safety standards
-
goals (production/department)
stock / warehouse
suppliers
production lines / products
work method(s)
quality / corrective actions
IT
equipment / tools / automatication
standard costs
outsourced productions
ratios (Kennzahlen )/ productivity
order processing
technical planning
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
3 Definitions
3.1 Industrial Organization
-
describes a system of permanent regulations and input/output relations
determine the work of the operative and ensure function-fulfilment
(Wiendall/Spur)
Industrial Organization contains 2 items:
• structure organization
• work process organization
3.1.1 Structure organization
Arrangement and organizational structuring of enterprises/operations according to
principles of division of labour and organizational units (work places, divisions) as
well as their cooperation/communication and coordination processes
(Birker)
monolithic line organization
specialization of functional areas
P
P
staff line organization
Management
Sales
Marketing
R&D
Operations
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
Matrix Organization
Management
Operations
Product
Manager
A
Production
Product
Manager
A
Production
A
B
R&D
Sales
Marketing
Admin
A
A
A
A
B
B
B
B
3.1.2 Process organization
Special and temporal arrangements of work functions along the supply and
production chain within the operational structure. The process organization regulates
the activities for execution of tasks
(Birkel)
3.2 Systematic of Industrial Engineering
six levels of analysis:
1st
2nd
3rd
4th
5th
6th
level:
level:
level:
level:
level:
level:
Enterprise/Company
plant
manufacturing area / planning area
work team
work place
job/function
Macro level
Meso level
Micro level
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
15.10.2003
3.3 Functions of IE in Enterprises
layout
Production
control
Production
facilities
Production
planning
Quality
assurance
IE
purchase
manufacturing
Internal
logisics
Industrial
medicine
R&D
Industrial
hyginie and
safety
4 Documentation of a Product
product documentation
technical drawing
bill of material (BOM)
numbering system
(Stückliste)
-
-
types:
• explosion drawing
• single part drawing • component drawing
CAD program (Autocad
X / Proengineering)
intellectual property of
the company Æ
important to save (e.g.
microfiches)
list of all the parts of a
product
types:
• one level BOM
• structureBOM
• summarized BOM
• variant BOM
-
-
identifying article
number for every
special product
e.g. SAP/R3
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
5 Routing plan / master route sheet (Fertigungsplan)
-
order independent documentation of the manufacturing process
works for one level
routing
types
routing for:
• final assembly
• parts/components
• repair
structure
written as:
full list or short list
(abbreviations)
content
top data :
• Art.-Nr.
• description of
part/product
• Nr. editions
(versions)
• lot size
material data:
• Mat.-Nr.
• description of
material
• units (kg,m, …)
• quantity
production data
• process data
• working place
• standard times
• production facilities
information
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
5.1 building of routing
IE:
step1: “make or buy” – decision (e.g. “in house production” or “outsourcing” or
“purchase supplier”)
step2: check
•
•
•
•
•
•
drawings
BOM
Article-No.
equipment
working place
quality (how to test)
step3: think about
• lot sizes (5 or 50000 units/year)
• final production date (how long it will take to build up the production
line?)
• service life of product
step4: think about
• work study
• production technology (machines, programming of machines)
• organization
step5: planning of similarities (maybe you can use similar technologies from other
products)
define processes
planning of production equipment
• tools
Å data from R&D
(especially plastic, rubber need long time)
• fixtures (fest angebrachtes Zubehörteil)
• test equipment
step6: cycle time definition
• standard times
estimation(e.g. based on similarities)
ask the worker
Methods time measurement(MTM)
(standard calculation)
step7: planning of logistics
step8: need of NC-programs (for numeric controlled machines)
⇓
Routing plan
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
standard time
Time required by a average skilled operation, working at normal pace to perform a
special task using a prescribed method allowing time for personal needs,
fatigue(Ermüdung) and delay.
data for
line balancing
Calculation
(standard costs,
Herstellungskosten(HK))
Standard
time
data for wage payment
data for
line simulation
data for employment evaluation
data for
staffing
working hours
begin and end of work without any break Æ 8:00 a.m. – 15:30 p.m.
1. organization (traditional working hours):
• 1 Shift
• 2 Shifts
• 3 Shifts
2. flexible working hours
• part time
• job sharing
• yearly working hours
• capacity related working hours (work 10h/day if there’re orders, stay
home if not)
German labour law
working hours:
breaks:
<8h/day
10h/day max for 6 month
15min breakfast (8h/day)
30min lunch (6-9h)
45min lunch (>9h)
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
29.10.2003
6 Case study 2
Transfer of production of printed circuit boards to Signa /Cz
Situation:
- Martin GmbH, Berlin wants to outsource the production and test of printed
circuit boards (PCB) for the product program of Martin GmbH to Signa.
- Martin has a program of 40 different PCB`s with yearly volume from 50 units/
year to 10 000 units/year.
- The make or buy-analysis was done and the management decision was to
outsource the production of PCB`s to Signa.
Signa:
- Specialized company for the production of PCB`s and test of PCB`s ATEX
approved and certified ISO 9001:2000
- State of the art insertion and test machines (SMD devices etc)
- 3 shifts operation
- Spray coating equipment for PCB`s
- 50 employees, engineering department for PCB layouts
- CAD –system in use
- Test adapters and test programs made by Signa
Tasks:
- The operations manager of the Martin GmbH has installed a team to manage
the transfer.
- Team members are engineers of R&D, Industrial Engineering, Production,
Cost Accounting, Production Control and Purchase Department
1.
2.
3.
4.
5.
Create a team chart for this team
Which product documentations are needed for the transfer?
Define the potential steps for the transfer
Define a milestone plan for the transfer
Transfer of special equipment and fixtures to Signa
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
6.1 Create a team chart for this team
Transfer of production of printed circuit boards to SIGNA
Mission
Statement
Team
Inputs
Team Goals
& Outputs
Team
Members
Group
Responsibilities
Timing
Transfer of production technology and necessary information of PCB-production
to Signa, Czech Rep. enabling them to produce at same standards and output
volume.
Ensuring the right amount of PCB’s in the right time, right location and right
quality.
Information of present production
1. Risk Management: Plan “B”
2. Analysis of PCB portfolio (40 types, ABC-distribution)
3. Information politics
4. Basic data (documentation)
5. capacity planning for the next 6 months
6. Check of SW-compatibility
7. Copy of Test-SW
8. Direct contact with sufficient language skills (interpreter necessary?)
9. Interfaces of processes
10. Decision: Who is supplier for components of PCB’s? (Supply Chain
Management)
11. Logistics: Transportation, delay due to customs, etc.
12. Outgoing or incoming quality tests?
Project goals
• Project finish (production running 100% of present volume and quality)
end of April 2004
• Meet target costs
Output:
• Documentation
• Project plan
• Validation of processes
Team leader
Team sponsor
• John Beschnidt
• Andreas Reichert
• Philipp Hartmann
• Heiko Boelter
• Haifeng Li
• Russell Sahusilawane
• Phillip Kern
• Florian Hieber
Successful transfer within cost and time limit
Guarantee the communication between teams
Guarantee the sufficient supply of PCB’s during transfer time and afterwards
1.
2.
3.
4.
5.
6.
7.
Visit Signa plant
Documentation of processes (BOM, Routing Plan, test plans, etc.)
Define contacts
Feasibility study for emergency plan
Parallel production during transfer
Extended stock production (300%)
Pilot run
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10/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
6.2 Which product documentations are needed for the transfer?
Product documentation necessary for transfer
Product information
• Drawings
• BOM
• Routing Plans without minutes
• Test plans
• Test adapters
• Special condition instruction
(e.g. coating)
• Samples
Process information
• Agreed project schedule
• Agreed production schedule
(transfer and rolling forecast)
• Supplier specifications (incl. names
and prices)
• Electric circuit plans
• Quality history
• R&D experience
6.3 Define the potential steps for the transfer
Define the potential steps for the transfer (incl. milestones)
1. Analysis of portfolio (2 weeks) Æ ABC-Matrix
2. Collect documentation and translation (6 – 8 weeks) Æ Phase 1: Drawing,
BOM, Routing, test sheets
3. Agree on schedules
4. Transfer of A-Runner PCB
6.4 Define a milestone plan for the transfer
s.a. (6.3)
6.5 Transfer of special equipment and fixtures to Signa
Transfer of special equipment and fixtures to Signa
1. know-how-transfer
2. disassembly of equipment
3. transportation
4. setup of equipment
5. test of equipment
6. know-how-transfer
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11/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
12.11.2003
7 methods to find out standard times
actual data (from experience)
• time measurements
• ask the worker
• expert systems
• self documentation of time
estimated data
• MTM (Methods time measurement)
• WF (Work Factor)
• Simulation
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12/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
7.1 standard cost calculation
based on 100 units
Labor burden:
• heating
• lighting
• depreciations
(Abschreibungen)
• vacation
• social cost / pension
• rent/m²
• cleaning
• maintenance
• production manager
(partly)
• Quality managers
• Industrial Engineer
€
material burden
(Materialgemeinkosten)
material cost
variable cost
labor burden
material cost
(Fertigungsgemeinkosten)
labor cost
(wages…)
labor cost
(wages…)
material burden:
• warehouse cost
• incoming inspection
• shipping cost
standard costs
(Normally 10-15%)
€
list price = standard cost * 3,x
list price
(Frank-Lynn-factor)
discount
Sales price
(Price for customer)
profit margin
Sales/Marketing
R&D
standard cost
intercompany pricing:
standard cost + x%
product cost (for company)
Admin
(for selling to a sister company)
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
19.11.2003
8 work organization
8.1 direct departments
-
direct working on the product (assembly, testing, developing…)
normally blue collar workers
8.1.1 Measures in Work Structuring: Job Enlargement
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.2 Measures in Work Structuring: Job Enrichment
Problem: not all workers want to do that, they are insecure
8.1.3 Measures in Work Structuring: Job Rotation
Advantage: more flexibility
(in case of vacation/illness more workers can do the same work)
Disadvantage: more qualification necessary
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15/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.4 Groups and Teams
8.1.5 Quality Circles
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.6 learning room
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.7 workshop circle
8.1.8 example from Packing Industry
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.9 production cell
8.1.10 lean production
example for lean production see also 8.1.8 example from Packing Industry
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19/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.11 Organization of Team work
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.1.12 Task: Introduce a work cell organization in production department
1. information of shop council / Wirtschaftsausschuß
2. Kick-Off meeting (start of the project)
• all involved people (workers, supervisors, management,
ProductionControl, QualityControl, Shop Council, (+ Consultant))
• project team (
¾ team leader
¾ industrial engineer
¾ production control
¾ finance
¾ supervisor
¾ (shop council member)
3. next steps
• groups
• goals
• functional organization Æ segmentation
Æ group work
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
8.2 indirect departments
-
not directly working on the product (e.g. industrial engineer)
Global steering teams:
head and face protection
-
sales
market
R&D
production
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
2004-01-14
9 material management
supply chain:
material/goods/products flow
supplier
production
distribution
production
control
rolling
forecast
sales
customer
information flow
rolling forecast:
based on:
- sales statistics
- market development
- orders you already have
normally done by sales department
2004
Jan
product A
product B
product C
product D
Feb
1000
500
March
1000
500
900
April
800
400
800
800
…
2005
Jan
Feb
…
700
900
you need this information to order from the supplier especially with respect to long
delivery times
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
forecast
SAP R/2
inventory
MRP
purchase
orders
production
orders
production
warehouse
shipping dep.
supplier
incoming
inspection
certificated
supplier
warehouse
customer
additional:
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
10 Order processing and Production Planning & Control (PPC)
10.1 Tasks, Objectives and Definition of PPC
10.1.1 Order Processing, Production Planning & Control (PPC) and Enterprise
Resource Planning
10.1.2 Production, Planning & Control (PPC) – Tasks and Objektives
10.1.3
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
PPC – Tools, Models
Y-Integration-Model:
The Aachen Model of PPC:
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27/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
Task Reference View of the Aachen Model of PPC:
Planning Levels of the Aachen Model:
10.1.4
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28/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
Production Program Planning
10.1.5 Forecast Methods for Sales Planning
10.1.6
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29/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
ABC-Analysis
10.1.7 Order Point Method and Order Rhythm Method
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30/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
10.1.8 optimal Lot sizes and order quantities
10.1.9 Scheduling
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31/35
International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
If real delivery date is later Æ penalty
think of bottle necks in production, that can be optimized
10.1.10 methods of lead time reduction
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
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International Technology
Transfer Management
Wintersemester 2003/2004
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
10.1.11 data management
10.1.12
Push Principle –and Pull Principle
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10.1.13
KANBAN
10.1.14
Summary and Outlook
Industrial Engineering
Dr. rer. nat. Dieter Lubkoll
Lecture Notes by Phillip Kern
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