Transcript Prof. Delčo Jovanoski - europe

XXXIII AIM Conference: Skopje
(22-25 September, 2011)
Enterprise Restructuring/Improvement
- Introduction -
Prof. Delcho Jovanoski
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
FOCUS of the conference:
Discussions/ideas from Grenoble
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Prof.
Prof.
Prof.
Prof.
Prof.
...
Jensen:
Kochar:
Fahrni:
Meier:
Deuse:
education
sustainability of the changes
continuous restructuring
production – not financial issues
research
(of course: the colleagues have not thought that a single
focus excludes the others!)
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Continuous restructuring
… there is at least one point in the history of a
company when dramatic changes should be
made in order to achieve a next level of
performance. … (former Intel manager)
(not one point; there are many!)
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Division of Industrial Engineering and Management:
Activities
Education
• Manufacturing
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systems
Operations research
Management
Project Management
Product Development
Work Study
Management of
Technology
Entrepreneurship and
Small Business
Modeling and
Simulation
...
Research
• Methodology for
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Enterprise
Restructuring
CAPP
IS
Technical
Investment
Planning
Organizational
Design
Capacity Planning
HRM
PPC
...
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Applied Projects
• Enterprise
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Restructuring
Factory Planning
Implementation of
New Technologies
Continuous
Improvement
Investment
Planning
Business Start-Up
Quality Management
Logistics and SCM
Process optimization
...
Enterprise Restructuring: COMPASS
(COmpany’s Management Purpose ASSistance)
Partner institution: Fraunhofer Institute für Produktionstechnik und Automatisierung (IPA)
Customer demands
Top management
Strategy
Goals of
the strategy
GAP ANALYSIS I/P MATRIXES

consistency of the strategy goals
and the performance measures
Insight in theenterprise doing
Analysis
Benchmarking
Performance
Measurement
Actions for improvement of the
situation
PERFORMANCE MEASUREMENT SISTEM
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Enterprise Restructuring – COMPASS:
from a single organizational/functional unit to the whole enterprise and
from a single KE to the bunch of KE
Structuralfunctional area
Sub-area
MARKETING
Market analysis
Defining the product spectrum
Advertising
R&D
R&D of new technologies
R&D of new products
Analysis of new investments
CONSTRUCTION Technical documentation - new
products
Technical documentation adaptations
PURCHASING
Making purchasing orders
Vendor management
SALES AND
DISTRIBUTION
Duration
W
Value
0,1
0,2
0,6
0,2
0,2
1,2
0,3
0,9
0,1
0,1
0,8
1,1
1
0,2
3,8
0,8
TIME
Reliability /
Dependability
W
Value
Flexibility
W
Value
1
0,45
1,2
Packing
Distribution
Making order for production
Customer management
Servicing and technical support to the
customer
Making an offer
TOTAL
VALUE of the subKEi
VALUE of the KE
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
1
0,35
0,5
0,875
I-P matrix: portfolio
(for only two key elements for success)
PERFORMANCE
10
Productivity  Labor

5
Costs –
 Labor
Costs Equipment
Productivity Energy

Productivity  Material

Productivity Equipment

Costs Overheads
Costs - 
Material
Productivity Facilities 
0
0,5
1
IMPORTANCE
Legend:
 - False alarm
 - OK
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
 - OK
 - Gap
7
Scenarios …
C
A
E
B
D
1
Costs
2
3
F
improvement
more than 10%
4
G
H
I
5
6
9
J
10
13
15
improvement more
than 10%
8
12
11
14
improvement less
than 10%
7
16
improvement less
than 10%
improvement less
than 10%
Critical
Factor 1
improvement
more than 10%
improvement less
than 10%
improvement
more than 10%
Critical
Factor 2
Critical
Factor 1
improvement less
than 10%
improvement more
than 10%
Critical Factor 3
Critical Factor 3
improvement less
than 10%
improvement more
than 10%
Critical Factor 4
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
8
RESTRUCTURING OF A COUNTRY:
National strategy for sustainable development of R.
Macedonia (Partner institution: SIDA, Sweden)
Strategic Objective
Sustainable Development in the Republic of Macedonia, encompassing the economy, social and
environmental dimensions
Project Objective
To lead a participatory process of developing a National Strategy for Sustainable development
meeting the requirements of EU – accession for the Republic of Macedonia.
Specific Project Objective Area 1
Specific Project Objective Area 2
Specific Project Objective Area 3
Awareness Increased
NSSD Prepared
Capacity Increased
1. Awareness of sustainable development
among the stakeholders and the people of the
Republic of Macedonia increased
2. Framework for sustainable development in
the Republic of Macedonia, as ground for
acceleration of domestic and foreign
investments, defined
5. Capacity for planning and management of
sustainable development among key
stakeholders strengthened
3. Strengths of the Republic of Macedonia to
fully participate in the process of globalisation
identified
6. Institutional setup and coordinating
mechanisms for implementation and
maintenance of the process of sustainable
development established
Hundreds of
projects for
sustainable
improvement
of the whole
economy
4. National Strategy for Sustainable
Development in compliance with EUrequirements elaborated
Chart No. 1: Project Strategic Objective, Specific Objectives and Outputs
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
9
Production – not Finance: actually all functions!
 Cooperations (in development, sales, purchasing, …)
 Strategies (followed and planned)
 SWOT of the company
 Measures from Controlling
 Benchmarking of economic performance measures
 Personnel
 Product spectrum and development
 Manufacturing organization (manufacturing, assembly,
maintenance, quality management, sales, PPC, transport,
warehouses, ...)
 Purchasing
 Know-how
...
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Strategic Planning
Partner institution: Fraunhofer Institute für Produktionstechnik und
Automatisierung (IPA)

Approaching new markets
Development of new products
Production organization analysis
Lower
Costs


Planned strategies










CIM
Product standardization
Reduction of the manufacturing
depth
Reduction of the hierarchical level
Quality management, certificate
Organizational forms (e.g. profit
centers)
Derived demands/measures
Derived demands/measures versus
the competition, management
deficit, know how
Self -assessment of the weaknesses
in lead times, costs
Product mix
Lack of personnel in sales
High delivery
readiness
s







Development of marketing
and other activities
Quality management,
certificate
Organizational forms (e.g.
profit centers)
Product standardization
Lead times reduction
Development of cooperation
Cleaning of the product mix
Improvement of the
Employee qualifications
KAIZEN/CIM
Big number
of products


High quality
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -


Reduction of the hierarchical
levels
Reduction of the
manufacturing depth
Automation
Computer integration, CIM
High priority
Strategies
Middle priority



Goals
Low priority
Followed strategies
Product development
Share of revenue and costs
50
50
45
Costs share
Revenue in %
40
Revenue share
40
35
35
30
30
25
25
20
20
15
15
10
10
5
5
0
0
1. group
of products
2. group
3. group
4. group
of products of products of products
Development
and Design
Ss. Cyril and Methodius University
Faculty of Mechanical Engineering
- Division of IE&M -
in Skopje
Actions for different product groups
Income shares
%
Product group 2
Product group 1
40
Increasing
Income shares
Cleaning of the product mix
30
Marketing
activities !
(new products which make
Income are needed)
20
Product group 4
10
Product group 3
0,35
0,7
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
1,05
1,4
Cost shares /
Income shares
Restructuring strategy for company Y
Partner institution: SINTEF, Norway
Project tasks
Find capital/
Increase volume
Search for
partner
- Identify potential
partners
- Clarify interest of
potential partners
and what RK can
offer
- Identify type of
partnership(s)
- Develop prospect(s)
Improvements
Increase market
presens and
awareness
- Establish marketing
department
- Joint participation in
tenders with foreign
companies
- Investigate lost tenders
- Investigate competitors
and their advantages
- Identify markets/
tenders that are
suitable
with regards to Rade
Koncar's current
capabilities and
capacities
- Political influence on
markets of the new
government
- Establish continuos
investigations of
available donors,
donations, creditlines,
tenders, funds, etc.
- Alternative use of
competencies
Short term
Mid/long term
- Financial restructuring
- Identify bottlenecks
- Organisational
adjustments
-Re-establish brand
name
-Maintenance of
machines
-Financial aspects
-Marketing development
-Training of staff
-Standardisation and
modularisation
-Continous
improvement
-Quality management
-Maintenance of
machines
-Modernisation of
equipment
-Production planning
and control
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Fractal Company Approach
Nr
.
PRODUCTION
PHASE
CONCEPTS OF THE FRACTALS
I
1
2
3
Entrance control
Warehousing
Material preparation
(sheet metal, plastic
isolation)
4
5
6
7
8
II
1
1
Forming of package
(cutting through,
packaging,
isolation)
2
2
Casting of the
plastic parts
3
3
Casting of the nonferrous metal parts
4
4
Metal cutting and
forming
Pre-assembling
6
5
7
8
9
III
1 + cutting
through
7
V
1
1
10
9
5
6
IV
2
2
2
3
3
3
4
4
4
5
8
6
7
5
6
7
5 6 7
9
10
11
Final-assembling
Inspection
Packing
12
Warehousing and
delivery
10
10
8
8
8
Quality
management
11
11
9
9
9
13
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
1
0
Layout Optimization
Partner institution: SINTEF, Norway
Sheet store
Store
Cutting
Pres6
Drill
Bending
Saw
Lathe
Saw
Manual
br.
Final product
Assembly
store
Bending
Bending
Cutter
tool
Press
Bendin
g
tubes
Product I
Painting
Welding
Area
(as a separate
fractal)
WELDING
Electrostatic
painting
Assembly
Product II
Store for finished
products
Kiln
STORE
Pain
t
sho
p
Assemb
ly
Stor
e
Bend.
ASSEMB
LY
WELDI
NG
Cut
SA
W
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Ben
d.
ng
OFFICE AREA
PROPOSAL 5A
BB
P
P
D S
MIL
L
L
SA
W
stor
e
TEMPUS-Project:
Quality Management at Universities in Macedonia
Partner institution: Vienna University of Technology and Fraunhofer Institut für Produktionstechnik und
Automatisierung (IPA)
Project Structure
1.
1.1 Development of a
specific project time table for
all activities
Creation of a general
QM Model and QMSystem for the
Rectorates
1.2 Kick-Off-Meeting: QM
Philosophy and Mgt Tool
2. Development of the
specific QM Systems and
Implementation in the
Rectorates of four Universities
2.1 Training for W orking
groups at the Rectorates before
the work on QMS
3. Testing the QMDocumentation, Audit,
Improvements,
Dissemination
3.1 Preparation and Releasing
of the QMS-Documentation
4.
Overall Project
Outcomes
Dissemination and
sustainability
3.2 Training of the further
employee in the Rectorates
1.3 Preparation and scanning
of the current situation
- Organization
- Products/Services
- Processes + Documentation
1.4 Analysis and Synthesis of
the collected Data
2.2 Analysis of the differences
between the general and
specific QMS
3.3 Monitoring of the
implementation of the QMSDocumentation
Quality control and
monitoring
3.4 Training of the personnel for
Internal Audits
1.5 Creation of a general
QMS-Manual
1.6 Presentation and
Analysis of the QMS-Manual
2.3 Creation of specific QMSManuals
- Q-Plan (Processes+PR)
- Q-Policy, Q-Goals
- Presentation of QMS
3.5 Testing of the personnel for
Internal Audits
3.6 Preparation of the Int. Audits
3.7 Carrying out Internal Audits
1.7 Creation of detailed,
general QMS-Documentation
- Procedures,
- W ork Instruct.
- Forms
1.8 Presentation and
Analysis of the detailed,
general QMS-Documentation
2.4 Creation of specific QMSDocumentations
- Procedures,
- W ork Instruct.
- Forms
3.8 Analysis of Internal Audits
and Preventive/Corrective Meas.
3.9 Choosing of Certif. Inst.
2.5 Harmonization of the
developed QMSDocumentation
3.10 Carrying out of the External
Audits
3.11 Promotive Conference and
Closing of the Project
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Management of the
project
Pre- and Post-calculation
Partner institution: SINTEF, Norway
Components of the cost calculation
Our
approach
REFA approach
Material unit cost
MET
Material general cost
MOT
Material cost
M
MT
Direct labor cost
DTI
General cost for manufacturing
OTI
Manufacturing cost
VT
TI
TI
Separate manufacturing cost
PETI
Production cost
PT
Aod
Cost for development and design
TK
Aop
General management cost
OTU
General cost for sale
OTPr
Asap
General cost for management and sale
OTUP
Separate unit cost for sale
PETP
Total cost
OT
TE
CE1 = M1 + tn,1 *(Ct,1 + ka + ksap + kot,1)
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
CE
University Ss Cyril and Methodius Business Start-up Centre
Partner institution: ADA, Austria
• Dissemination of the entrepreneurial
spirit among the students
• Entrepreneurial training
• Development of business plans
• Support of the established companies
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Project proposal for Sustainable
development of SMEs
I. PROMOTION
1. General promotion
of the project
II. APPLIED PROJECT ACTIVITIES
2. Specific
promotion of
problem areas
3. Preparatory phase for the applied
projects (for 40 companies)
4. Detailed elaboration, implementation
and follow up of the applied projects
(for 20 companies)
Problem
area 1
-
public appearance
-
public awareness
-
face-to-face
promotion
-
initial workshop
(general info on all
problem areas)
Problem
area 2
Scanning,
analysis and
determination
of strategies
On-job
training
(focused on
the strategy)
Solution of the
identified
problem
Implementation
of the
applied projects
…
Problem
area 8
Selection
Selection
Selection
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Selection
Follow-up
of the
applied projects
Some of the Problem areas
PROBLEM AREA
POSSIBLE OUTPUTS
Development of new,
competitive products
- New, competitive product (in case of simpler products)
- Concept of new, competitive product (in case of more complex
products)
Costs reduction
- Reduced costs in the enterprise through
o
o
o
Optimized inventory
Transport minimization
Elimination of non-value added activities,
etc.
- Developed and implemented system for pre- and post-calculation
(of product costs)
Quality improvement
- Implemented QMS in accordance to ISO 9001:2000 in the
company
- Certified QMS in accordance to ISO 9001:2000 in the company
- Implemented SPC
- Reduced scrap
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Expert forums – dedicated to the
restructuring/improvement
 officials from the
Government
 experts from the university
community (from many
countries)
 experts from the industry
and services (domestic but
also foreign ones)
 experts from the Macedonian Academy of
Science and Art
 experts from national agencies
 experts from international institutions
 chambers of commerce
 labour unions
 donors for projects (SIDA, GTZ, ADA,
JICA, USAID, , Embassies, . . .)
 association of the municipalities
 some companies ”Champions”
 students
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Presentations today: Examples from
projects
 Prof. Fahrni:
 Prof. Santarek:
 Prof. Veža:
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -
Thank you for your attention
Ss. Cyril and Methodius University in Skopje
Faculty of Mechanical Engineering
- Division of IE&M -