1. What is management and its role in CIM?

2. What is the traditional view in managing manufacturing?

3. What are the new manufacturing management concepts and their relationship to CIM?

4. What is lean manufacturing and its relationship to resource management?

5. What is total quality management and its relationship to quality management?

6. What is participative management and its relationship to people management?

7. What are the obstacles and barriers to CIM success?
 
 

The managerial issues of CIM

1. Management - Plan, Organize, Direct, Control

• Interpersonal (Figurehead, Leader, Liaison)
• Informational (Monitor, Disseminator, Spokesperson)
• Decisional (Entrepreneur, Disturbance handler, Resource allocator, Negotiator)

• Leadership - top management involvement and commitment
• Integration - breakdown departmental turfs or group politics

• Business model - understand the problem environment & develop a strategic plan
• Functional model - understand the business processes, functions, and activities to support the strategic plan
• Information model - identify information needs, flow patterns, database requirements to support the functional model
• Network model - identify communications networking requirements to support the information model
• Organizational model - identify organizational implications (organization structure, policies/procedural changes, skills requirement, conflict resolution etc.) & make preparation for implementation
• Implementation plan

2&3.
 

TRENDS
Industrial Society	Information Society
Short term	Long term
Representative Democracy	Participatory Democracy
PARADIGM
Commute	Telecommute
Products	Products & Services
Markets	Products
Physical Capital	Intellectual Capital
Strategy ® Technology	Strategy « Technology
Hierarchical	Delayering
Vertical Integration	Disaggregation
MANUFACTURING STRATEGIES
Technology Driven	Customer Driven
Build	Supply
Cost	Time
Data/Information	Knowledge
Product Quality	Process Quality
Functional	Enterprise
Downsizing	Rightsizing
Just-in-Case	Just-in-Time
High Volume	Custom/Lots of One
Procurement	Logistics
Adversarial	Alliance
Multiple Sourcing	Sole Sourcing
Interfacing	Integrating

Traditional view of manufacturing management	New concepts of manufacturing management
Design novelty	Customer focus
Economical lot sizes	Lot size of ONE
High machine utilization means queues	Eliminate queues; reduce WIP
Multiple suppliers	Single supplier
Reduce direct labor	Reduce quality variations & non-value-added activities
Push material through	Pull material through
Safety stock	Zero inventory
Solve problems	Prevent problems
Work harder	Work smarter

 

4. Resource Management ® Lean production

• Seek perfection the first time
• Avoid waste of time & materials
• Train employees
• Adopt new organization relationship

Buffered manufacturing

• high inventory level to buffer against unexpected quality problems,
• built-in buffers at assembly lines to keep production moving if equipment broke down;
• legions of utility workers were kept on the payroll to buffer unexpected periods of high absenteeism;
• repair areas were huge to buffer against poor assembly line quality
• low short-term risks and the potential for long-term performance gain
• may achieve economies of scale or increased utilization rates

Lean manufacturing

• inventory were kept at an absolute minimum so that costs could be shaved and quality problems quickly detected and solved;
• bufferless assembly lines assured continuous-flow production;
• utility workers were conspicuous only in their absence from the payroll. If a worker was absent without notice, the team would fill in;
• repair areas were tiny as a result of the belief that quality should be achieved within the process, not within a rectification area
• higher risks/high return ventures

Toyota Lean Manufacturing System

• A full development & integration of all existing technology, policies, & human resources through team leader system.
• The team leader has no direct responsibilities on the line. Rather, he/she is responsible for activities traditionally performed by industrial engineers, quality control staff, maintenance workers, trainers, and other specialists. These tasks include work organization, preventive maintenance, quality inspections, and team member training.
• A grass-roots involvement with all aspects of the operation at the workforce level is the key to an integrated, continuous incremental improvement of skills, machines, and processes.

Implications from Toyota Lean Manufacturing Systems

• Expensive flexible automation is NOT a prerequisite to high plant performance (e.g., productivity, quality, flexibility)
• Effective production management policies can be shaped regardless of plant location
• Lean manufacturing policy is most conducive to improved productivity and quality performance
• The inherent risks associated with lean management policies can be neutralized by developing
• a well-trained, flexible workforce
• product designs that are easy to build with high quality
• a supportive, high-performance suppler network.

The 5 S
 

Japanese	Meaning	English
Seiri	Throw out or discard	Sort
Seiton	Orderliness	Straighten
Seiso	Cleanliness	Shine
Seiketsu	Clean up	Standardize
Shitsuke	Discipline	Sustain

 

5. Quality Management ® Total Quality Management

Quality: the totality of features and characteristics of a product or service that meets or exceeds customer expectations

Key dimensions of quality

• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics

Quality Management

 4 concepts

• Quality is conformance to requirements
• Prevention
• Zero defects
• Quality is measured by the price of nonconformance

• Elimination of wastes
• Put things in order
• Training & self-discipline

Total Quality: the involvement of all employees in seeking to achieve customer satisfaction through continuous improvement activities

Total Quality Management: a total system approach to continuous improvement

• Pioneered by W. Edwards Deming and Joseph Juran
• Uses teams drawn from all parts of the company to define and tackle problems
• Relies on statistical measurement to identify problems and chart progress

7 Quality Control Tools
 

Pareto Analysis	A diagram for tallying the percentage of defects resulting from different causes to identify major quality problems.
Flow Charts	A diagram of the steps in a process; helps focus on where in a process a quality problem might exist.
Check Sheet	A fact-finding tool for tallying the number of defects for a list of previously identified problem causes
Histogram	A diagram showing the frequency of data related to a quality problem
Scatter Diagram	A graph showing the relationship between two variables in a process; identifies a pattern that may cause a quality problem.
Statistical Process Control Chart	A chart with statistical upper and lower limits; if the process stays between these limits over time it is in control and a problem does not exist.
Cause-and-Effect Diagram	A "fishbone" diagram; a graph of the causes of a quality problem divided into categories.

 

Source: Yung, W.K.C., "The Values of TQM in the Revised ISO 9000 Quality System", International Journal of Operations and Production Management, vol.17, no.2, 1997, pp.221-230.
 
 

TQM Strategies
 

TQM Strategies	% of Users
Employee Involvement	89%
Customer Driven	75%
TQM Teams	65%
Statistical Process Control	60%
Benchmarking	50%
Quality Circles	35%
Quality Award Criteria	30%
Quality Function Deployment	20%

 Source: Randhawa, S.U., McDowell, E.D., Tabaka, P.J., and Howard, N.L., "TQM Practices: A Survey of Companies in the Pacific Northwest", Industrial Engineering, October 1994, pp.28-30.

Quality Function Deployment (House of Quality)

• Identify customer requirements
• Identify technical requirements
• Relate the customer requirements to technical requirements
• Competitive evaluation
• Evaluate technical requirements and develop targets
• Determine which technical requirements to deploy in the production process

Statistical Process Control - a methodology in which operators, supervisors, and managers use control charts to monitor the output from a process to identify and to eliminate special causes of variation

- vs. Statistical Quality Control - involves employees in quality measurement & improvement activities, e.g., inspection, statistical sampling, etc.

- vs. Offline Quality Control: activities employed during design, product planning & development stages to infuse quality, e.g., Taguchi method

- vs. Online Quality Control: quality engineering activities employed during production, e.g., statistical process control
 
 

Quality Circle - teams of workers and supervisors that meet regularly to address workplace problems involving quality & productivity

6. People Management ® Participative Management

• Empowerment - empower people, put responsibility & authority where work is done
• Teamwork (Integrated Planning Process)
• Measures - have everyone develop specific performance measures & related goals
• Support - create a work structure that produces the desired results
• Learning - create a learning organization: make ongoing education and enriching work experience part of the job.

A team is a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable.
 
 
 

Working Group	Team
Strong, clear focused leader	Shared leadership roles
Individual accountability	Individual & mutual accountability
Shares the same purpose as the organizational mission	Specific team purpose that team itself delivers
Individual work products	Collective work products
Runs efficient meetings	Encourages open-ended discussion & active problem-solving meetings
Measures performance indirectly by its influence on others	Measures performance directly by assessing collective work products
Discusses, decides & delegates	Discusses, decides & does real work together

 

How team works best:

Develop a common purpose and translate it into specific goals

Small size - 2 to 25 people

Develop a right mix of skills - technical + problem-solving + communication

Develop strong commitment to a common approach (i.e., how they will work together to accomplish their purpose)

7. Obstacles to CIM Implementation

• Inertia, territorial rights, turf wars
• High costs of CIM projects
• Intangible benefits, e.g., improved quality
• Lack of standards
• Fear of job security

CIM doers

• Automakers
• Aerospace
• Defense
• Electronics producers

Barrier to CIM Implementation
 

Barrier	Causes
STRUCTURAL Excess focus on direct labor and ratios  Failure to perceive true benefits  High risk for managers  Lack of coordination & cooperation  High hopes & hidden costs	Obsolete decision criteria  Lack of measures of intangible benefits  Reward systems discourage risk taking  Organization fragmentation  Overselling
HUMAN Uncertainty avoidance  Resistance  Hasty decisions	Fear of change & uncertainty  Fear of loss of power & status  Action orientation: impatience with planning & waiting
TECHNICAL Incompatibility of systems	Purchase of a variety of software & hardware