Basic Changes in Management of Manufacturing
Transcript Basic Changes in Management of Manufacturing
Braulio Soto, Rob Morris, Evelyn Ozburn, Tiye Cort
Basic Concepts of a
Producing a lower cost is not the only way to compete
A company cannot perform well all the time
Simplicity and repetition create competence
Characteristics of a
Process Technologies – Typically, unproven and uncertain technologies
are limited to one per factory. Proven, mature technologies are limited
to what their managers can easily handle, typically two or three.
Market Demands – Quality, Price, lead times, and reliability
Product volumes – comparable levels such as tooling, order quantities,
materials handling techniques, and job contents, can be approached
with a consistent philosophy. But what about the inevitable short runs,
customer specials, and one-of-a-kind orders that every factory must
handle? The answer usually is to segregate them.
Quality levels – set approaches to neither over-specify nor over-control
quality and specifications.
Manufacturing Tools – limited to one or two at a time.
A way to achieve it
Focus the whole manufacturing system
on a limited task that is exactly
represented by the company’s
competitive strategy and its actual
technology and economics.
Center the factory’s focus on appropriate competitive
Stay away from the tendency to increase staff and
overhead in order to save on direct labor and capital
Each manufacturing unit should work on a limited
task instead of a complex mix of opposing objectives,
products and technologies.
Others may also apply as company sees fit!
How can I achieve a focused plant?
4 step process
Develop a specific, brief statement of corporate objectives and strategy
Should cover the next three to five years and top-management should be involved to
(marketing, finance, control executives etc.)
Translate the statement into: What it means to manufacturing?
What must the factory do well to meet and carry out the corporate strategy?
What will be the most difficult task we face?
If function is not strong where will we most likely fail?
Carefully examine each element of the production system
How is it setup, organized, focused, and manned now?
What is it especially good at now?
How ought it be changed so it can carry out the key manufacturing task?
Reorganize the elements of structure to produce a congruent focus
This means organize it so that it is able to do the limited things that are most important to
completing the manufacturing task.
Considered the father of Manufacturing Strategy
Graduated from Yale
Emeritus professor at Harvard University
Wrote “The Focused Factory”
Basic Changes in Management of
Four Basic Changes
“How can we compete?”
2. Look at efficiency as the whole manufacturing
3. Each plant needs to learn to focus on a limited, concise,
manageable set of products, technologies, volumes, and
4. Learn to structure basic manufacturing policies and
supporting services so that they focus on one explicit
manufacturing task instead of on many inconsistent,
conflicting, implicit tasks*
*W. Skinner, “The Focused Factory”, Harvard Business Review June 1974
Reasons For Inconsistency
Professionals in each field attempt to achieve goals
that are not corresponding with goals of other areas
Manufacturing tasks were never made specific
Inconsistencies never identified
Manufacturing task lightly changed while certain
departments like operating and service stayed the
Market & Product Proliferation
Alternative Approaches to
Directed for specific customers or product groups
Puts products together based on similar processes used
Manufacturing’s Strategic Task
Products are assigned to a specific unit based off OW & Q
Task is consistent
Divide existing plant into PWPs
Each PWP has its only facilities where it can focus on
Its specified manufacturing task
Use its own working style
Results From Using a PWP
Volume & Quality will not be mixed
Clear focus for worker training & incentives
Resources are now shared
Equipment, engineering processes and materials
handling are specialized as needed
Decreases focus regression
Forces That Make it Difficult to
Accounting & Finance