Transcript Slide 1

Mass Customization
Design Integration
The Impact of Computers
on Manufacturing
GEORGE C. HEINTZMAN
The progress of information in
terms of number of generations.
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300
Modern language
100
Writing
20
Printing
10
Scientific method
2
Information society
?
Digital computers
The impact of computers.
Carl Sagan - Astronomer
"Computers rival the invention of writing as one of the most profound
innovations in human history for they are remaking the world at a
phenomenal rate."
Mike Cocran - Toronto business man
"The current, as yet unnamed, information worker revolution will be more
profound, and yet shorter than the industrial revolution which took a
hundred and fifty years."
George Heintzman
"One of the most important impacts of computers is on lead time or
business speed."
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Computers are enabling new ways
of working.
Larger problems
Vibration analysis
Intregration
Big projects
Much smaller EOQ's mean many more shop orders
NC
Mini mills
Rapid prototyping
Wider span of control
Help desks
Order entry and tracking
Better customer service
Answer all questions while they are on the phone
Make to order
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Segmentation is changing our need
to communicate.
Work place
Tiers
Complexity of each tier
Specialization
New careers
All old careers are getting smaller
Result is we are working in lotsa, little, cross
organization groups which demand new skills
Presentation
Listening
Negotiation
Teamwork
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3 Trends are changing technology
decisions.
60 year economic cycle
Mass customization
Information worker revolution
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The 60 year cycle means cautious
buying decisions in this decade.
ƒ Buyers want value - slow decisions.
Advertising will stress value and warrantee
Buyers will place little or negative value on
unwanted features
ƒ Voters re-recognise that value has to
be created.
ƒ Less tendency to borrow even when
rates are low - no deficits.
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Peace and High Inovation have
meant deflation.
10
%
Inflation
5%
US Wholesale
0
Price changes
% change per year
10 Year moving average
5%
Source: Dr. Sherry Cooper
Senior VP and Cheif
Economist
Nesbit Burns
Deflation
10% 1810
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1830
1850
1870
1890
1910
1930
1950
1970
1990
Mass customization demanded by
market is made possible by technology.
Development cycle is reversed.
Redevelopment is part of the cycle.
Investments in flexible processes,
order processing and automated
engineering.
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There has been 150 year evolution
through Mass Production.
Invention
Dynamic
–Products
–Processes
–Schedule
Mass Production
Stable
–Product
–Processes
–Schedule
No thinking
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No skills
Craftsmanship
Specialists
The mass production cycle thrives on
stability to deliver consistent quality at low
cost.
New
Products
Long Product
Development Cycles
Long Product
Life Cycles
Stable
Demand
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Mass Production
Processes
Low-Cost, Consistent
Quality, Standardized
Products
Homogeneou
s Market
The Mass Customization cycle thrives on
Flexibility to deliver what the customer wants.
New Products
Short Product
Development Cycles
Short Product
Life Cycles
Demand
Fragmentation
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Flexible
Mass Customization
Processes
Low-Cost, High Quality,
Customized Products
Heterogeneou
s Market
The cycle is
reversed.
Renewal closes the loop of the
Mass Customization cycle.
Cycles
Mass Customization
Invention
Renewal
Mass Production
4
1
1-2-1-2-1-2
Process Improvement
1-2-3-1-2-3-1-2-3-
Mass CustomizationProduct
Mass Production Axis
change
Development
1-2-3-4-1-2-3-4-1-
Modularization
3
2
Linking
Mass Production
Continuos Process
Improvement
Process change
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Significant differences exist between
Mass Production and Mass
Customization.
Mass Production
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Mass Customization
Large Lot Size
Unit Lot Size
Inventory
No Inventory
Long lead time
Short Lead Time
High setup cost
Low setup cost
Limited selection
Large selection
There will be increased investment
in flexible, programmable processes.
Order entry tied to automated engineering and
programmed production.
(CD kiosk)
Order entry integrated with production control.
Motorola pagers
Visualization to assist ordering any place on the
globe. May be complimented with simulation.
Air planes
Feature and parameter driven design.
 Power transformers and
 Large electric motors
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What the customer cares about
crosses departments.
Customer
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The purpose of organization is to
solve problems.
Goals
Efficiency and productivity
Specialization
Control and measurement
Speed
Hand off's are
Result
killers
"What is this?"
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Slow
Fragmented
No clear responsibility
Customer disappears
Different companies respond
differently.
Company A
Decides they have too much administration
Fires all administrators without changing any process or forms or
procedures
Salesmen do the administrative chores
No one to do the selling
Technical work moved to customer
Company B
Every day asked underwriters how the work or system could be improved
Made the improvements they asked for quickly (days)
Moved from > 150 underwriters to < 30
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Doubled the insurance they were writing
We are in an information worker
revolution.
ƒ The industrial revolution took between 75 and
150 years.
ƒ The information worker revolution will take
between 10 and 20 years.
ƒ Productivity improvements over 5 to 1 will be
common.
ƒ The changes will be denied by public sector.
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One change model is
linear to controlled to empowered.
Order
capture
Credit
Check
Pricing
Terms
and
condition
s
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Issu
e
To improve control and reduce lead
time a control desk is implemented.
Order
capture
Credit Check
Pricing
Control desk
Terms
and
condition
s
More measurement means more delays.
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Stage three: the process is
improved and the flow is
eliminated.
Advisors
Credit
Finance
Legal
Request &
Response
Deal manager
Customers
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Support
New product design is being
improved in a similar way.
After:
Before:
Design
Marketing
Engineering
Marketing
Manufacturing
Design
Engineering
Manufacturing
Linear
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Team, data communication
based
Implementing numerical control
requires a large adjustment.
Numerical Control
NC
Driven by numbers called a program
No jigs just holding devices
Fast set-up - small lots - many small lots
One set-up instead of many
All tools required for the one set up
Short lead time
all in one
step
Traditional
Many machines
Many set-ups
Few tools at each set-up
Large lots - few jobs
Long lead time
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many
steps
Most companies take time to take
full advantage of NC.
hmmmm'
not what I expected
Problems
Not ready to supply all tools for one set up
Not ready for many small lots
–Can't track them
–Can't cost them
Not ready for short lead time
–Lead time is padded
–WIP higher than necessary
Put people on short jobs instead of long ones
Solutions
Education
Goals and objectives
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Separate tool room reporting to NC
department
What we should do is clear.
Have clear objectives
Work at the operational problems
Let the objectives guide us in our examination of
technology
Recognize that this takes long term effort
We are changing people
Their culture
Their behavior
Their jobs
Their satisfaction
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Mass Customization is
cross department
Technology
Data base
Communication
Configurators and automated design
People
Broader responsibilities
Aligned to customers
Specialists as consultants
Education
Team work
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Request
&
Response
A key difference is that all departments
get the same attention.
Across All departments
Flow is important
WIP is measured
Lead time is measured
Receive the same level of automation
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–Design
–Production
–Maintenance
–Order entry
–Accounting
–Production coordination
The goal of Mass Customization is
high customer satisfaction
ƒ Handling more different things
ƒ Handles it once
ƒ Each person completes more steps
ƒ Eliminate the task start up "What is this?"
ƒ Answer the customers question while they are on the
phone
ƒ Give the customer what they want - now.
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The structure of manufacturing is
changing.
Many more tiers
Top Tier markets products for consumers
ƒ Chrysler
ƒ Compac
All other tiers are suppliers of components
Competitors cooperate
IBM - Sun
ƒ Airlines
ƒ Automotive
ƒ Financial institutions
ƒ
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Increased need for cross
organization, multi-specialty
cooperation.
Communication
Negotiation
Team work
Objective
Interests
Contracts
Outcomes
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Specialization and tiers have facilitated
progress by taking it apart. The next
opportunity is to put it back together.
Cross specialty operational plans
Business plans
Profit (Financial) plans
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