INCLUDING ENGINEERING IN OPERATIONS STRATEGY

Today's markets are characterized by time and product quality-based competition. Companies must compete through their ability to manage the whole cycle of product realization and delivery, from the initial concept through to delivery and support at the customer. They must do this through managing an integrated company, not a set of separate functions. This paper addresses the issue of how companies should develop operations strategies for engineering and manufacturing combined. It uses field research into 15 engineering companies to develop the concept of the manufacturing system mission, and proposes strategic choices for manufacturing, engineering and linked functions.     

Manufacturing cycle time reduction using balance control in the semiconductor fabrication line

In semiconductor manufacturing, wafer fabrication is the most complicated and important process, and is composed of several hundred process steps and involves several hundred machines. The productivity of the manufacturing process depends mainly on controlling the balance of WIP (work-inprogress) flow to achieve maximum throughput under short manufacturing cycle times. This paper discusses how to determine the proper WIP level for operations, against which balance status can be measured. Balance measurement can be applied in mathematical modelling for bottleneck scheduling and operations management of the fabrication line. Performances are evaluated through computational experiments to show that balance driven management leads to 15-33% more production in 21% shorter manufacturing cycle time than production driven management.     

INTRODUCTION: SHAPING THE FUTURE OF MANUFACTURING AND SERVICE OPERATIONS

The challenges and opportunities in production and operations management (POM) are almost unlimited because in the world economy, manufacturing andservice operations account for more than 10 trillion dollars per year and in any single industry, the performance varies widely from country to country and from organization to organization. The goal of Production and Operations Management is to contribute to improving the management of manufacturing and service operations all over the world. The editors and reviewers judge the papers published in the journal for their contribution to improving of business practices and to further closeness between research and practice. The journal will publish high quality papers on a broad range of topics in POM, and it encourages all paradigms, old and new. We also invite managers from around the world to describe specific POM problems that provide challenging opportunities for academic research.     

Linking long-term capacity management for manufacturing and service operations

For firms that combine manufacturing and service operations in one system, the task of managing capacity is not straightforward. New goods and services may not have the same set of competitive priorities, and the models and concepts available in the literature for service operations differ from those for manufacturing operations. We address this problem and review the concepts and models for capacity management in the long term in both streams of literature, i.e. manufacturing and services, to develop a unified framework for manufacturing and service operations. The framework creates transparency between new goods manufacturing and service operations, since the same long-term capacity management structure is used for both product types, as well as between capacity strategy and planning strategy, since new goods and services are treated simultaneously. In the framework, the concepts of chase and level strategies are redefined for service operations to allow for integration with manufacturing operations. A case study demonstrates the usefulness of the integrated approach for long-term capacity management.     

John A. Buzacott and His Pioneering Contributions to Manufacturing and Service Systems

John A. Buzacott is a pioneering and premier contributor to the field of production and operations management. He has been a principal architect of the development of a unified framework and a rigorous engineering foundation for many of the major approaches currently used in the design, planning, and control of manufacturing and service systems. His innovative use of stochastic models to explain many phenomena occurring in manufacturing and service organizations has distinguished him not only as a great researcher but also as a great teacher. His contributions have inspired scholars throughout the world. We provide an overview of John's research works and accomplishments.     

Operations network development: internationalisation and externalisation of value chain activities

Considering the increased significance of both internationalisation and externalisation of manufacturing, this paper aims to provide an integrated understanding of internationalisation and externalisation and seek to identify further development trends. First, this paper investigates and summarises the existing literature in order to examine what has been done on internationalisation and externalisation. An adapted matrix is further presented in order to illustrate a roadmap for the manufacturing system evolution. Claiming that conceptual insights tell only one of the two worlds (i.e. research and practice) of operations management, this paper successively explores what is actually happening in practice on the basis of three case studies selected from the global operations networks (GONE) project, which is a joint-effort between several Danish universities and aims to deepen the understandings on GONE. The empirical findings suggest that the discussions on internationalisation and externalisation need to be extended from manufacturing activity to other value chain activities. Two development trajectories are further identified and combined. Their similarities and differences are correspondingly compared. Based on these findings, some managerial recommendations are given at the end.     

Finding and Implementing Energy Efficiency Projects in Industrial Facilities

This study addresses the challenges of finding and implementing profitable energy efficiency (EE) projects, a critical foundation for sustainable operations. We focus on manufacturing enterprises, but many of our findings apply also to the back office of service operations. Our starting point is that, in nearly every industrial enterprise, there are many profitable EE projects that could be implemented but are not. An oft‐cited hindrance to implementation is the lack of an internal management framework in which to find, value, and execute these projects. Using a conceptual approach, we rely on proven sustainable operations tools to develop such a framework. We identify three major value drivers of EE projects: savings intensity, “green” image, and project complexity. We then describe a framework for understanding the context of EE projects in industry, with an underlying analytic foundation in optimal portfolio analysis. A case study of a large manufacturing site is used to illustrate emerging best practices—based on Kaizen management principles—for integrating EE project management with operations, engineering, and strategy.     

The implementation of digital technologies for operations management: a case study for manufacturing apps

Abstract

Manufacturing applications address business to business (B2B) with highly customised applications developed for specific requirements, offering highly specialised solution-oriented and service-based software components, systems, and digital tools that aim at a fast and accurate decision-making support system. The purpose of this paper is to describe the implementation of digital technologies for operations management using manufacturing or engineering apps (eApps), for product design and manufacturing processes. In particular, starting from the specific needs of two companies from mature European industries as automotive and food, this work depicts how this kind of solutions can support companies and improve their operations. In particular, related benefits and challenges faced for the full implementation of the developed tools are highlighted. Moreover a business model to exploit the manufacturing apps is also proposed. The business model proposed for the exploitation of the eApps supports the commercialisation of all the revenue streams offered by this rapidly growing sector taking into account the specific needs of the concerned stakeholders through a diversified value proposition.     

In search of American and British productivity and quality of organization

America and Britain have taken a long time to accept conceptually and pragmatically the post-war economic performance of Japan and other capitalist countries. Our understanding of how to improve our production infrastructure remains inadequate. This paper addresses the critical area of manufacturing organization and restructuring production operations to offer substantial and immediate results. Most of the resources required to become a world class manufacturer are already in place in the UK and the US, yet the organization of these resources remains lacking. The purpose of this paper is to review the importance of productivity and energy conversion within an integrated manufacturing strategy. Current differences in operations management thinking that exist between     

CIM implementation for job-shop environments

Abstract

Abstract. The small to medium-sized job-shop manufacturing industry can benefit most from the implementation of computer integrated manufacturing (CIM) technology, to meet the increasing demand for high-quality and economically priced products. The injection mould making industry is a typical representative for this group, where a manufacturer would generally produce moulds which consist of parts that are standard to every mould type or very similar. Thus, manufacturing techniques, such as group technology (GT), and production planning and control (information) management systems could make significant contributions in improving the efficiency of design and production operations.

The objective of the project, presented in this paper, was the development of a GT-based classification and coding (C/C) system for injection mould parts especially for the design and process planning phases, and the development of a production planning and shop-floor control (SFC) information management system.

An extensive investigation was carried out on existing GT-based C/C systems. This investigation, followed by a thorough examination of many injection mould parts for determining geometric similarities, led to the development of part families (classes) required for GT implementation. An OPITZ-type GT system was developed, thereafter, for the C/C of the manufactured parts of the target company.

The production planning and control software that has been developed for the target company utilizes a relational data base management system. It consists of 13 application programs, which provide a tool of organizing information for efficient production planning and SFC. The programs are designed to cover all manufacturing operations of a job from the proposal to the final testing stage. Shop orders and dispatch lists are created using this software for effective and prioritized SFC. Shop status and job status reports are generated based on feedback information received through time card entries.     

PEDAGOGICAL CHALLENGE: TEACHING INTERNATIONAL PRODUCTION AND OPERATIONS MANAGEMENT COURSES

There should be two distinctly different pom introductory courses (or even tracks) for MBAs. Course one (called pom) would consist of traditional pom materials emphasizing domestic POM course materials. Course two, called international production and operations management (ipom), would focus on international aspects of pom, emphasizing cross-boundary operations. Training of instructors differs significantly for the two courses. ipom accentuates operations crossing borders where different languages, cultures and currencies apply. The ipom syllabus employs cases and examples based on companies and/or divisions located in a great variety of countries. Three important drivers of the international pom curriculum should be recognized: (1) supply chain management with ipom responsible for coordinating sources-of materials as well as making and delivering goods and services across global boundaries, (2) portfolio management because ipom can reduce risks by geographically diversifying operations, and (3) capabilities management because ipom must spot, develop and implement special global opportunities. Teaching how these three international drivers interact challenges the pom field to provide proper curriculum development and instructor methodology.     

Visualizing the factory through meta- manufacturing processes

Milestone or deadline driven production management is predominant in most manufacturing companies. Problems and other disturbing occurrences tend to see their first daylight during phases where plans are implemented into reality, for example, when production commences, prototypes enter manufacturing and deliveries are expected. Conventional control routines fail to depict the true progress and procedures of the company on an on-line basis, which means that instead of being proactive they serve as means to react to already existing problems. This paper studies the application of advanced visualization techniques to the already existing information embedded in a comany's information infrastructure, and how it can help management to anticipate probable near future pitfalls. By studying those daily operations of a company which share a document relationship with the true manufacturing process, that is, the meta-manufacturing processes, a completely new perspective on the company's value-adding activities is drawn. By mining the existing data reservoirs of a company traditionally difficult management processes, such as product development, vendor integration, production planning, can be analysed and the problems identified in a novel way to react in advance. The paper displays several empirical examples from bulk to one-of-a-kind production where the method has been successfully implemented.     

LOGISTICS MANAGEMENT SYSTEM: AN ADVANCED DECISION SUPPORT SYSTEM FOR THE FOURTH DECISION TIER DISPATCH OR SHORT-INTERVAL SCHEDULING

The Logistics Management System (LMS) is a real-time transaction-based system combining decision technologies from AI, MS/OR, and decision support system that serves very successfully as a dispatcher or short-interval scheduler by monitoring and controlling the manufacturing flow of IBM's semiconductor facility near Burlington, Vermont. LMS coordinates the actions and decisions of several logically isolated participants in a serially dependent system of activities. Therefore, it balances the requirements of several goals (cycle time, output, serviceability, and inventory management) that compete for the same resource, exploits emerging opportunities on the manufacturing floor, and reduces the distortion from unplanned events. This paper provides an overview of the LMS application, the concept of interrelated decision tiers in manufacturing decision making, and the need for the dispatch decision tier to successfully reduce apparent randomness. Historically, production and operations management has ignored this decision tier. This has significantly limited our ability to make an impact on the performance of the manufacturing operation.     

THE USE OF INDUSTRIAL SOFTWARE TO CREATE EXPERIENTIAL LEARNING ACTIVITIES IN OPERATIONS MANAGEMENT COURSES

Computer-based manufacturing planning and control (MPC) systems are widely used in industry to gain competitive advantage through integration and coordination of managerial activities. In collegiate business schools, important operations management activities are taught and studied, often by sequential examination of discrete topics such as aggregate production planning, master production scheduling, capacity planning, material planning, and production activity control. This paper explores the potential use of industrial MPC software in the classroom to create experiential learning activities that address the dynamic and integrative nature of operations management. Experiences with this pedagogical approach over the past decade are reported.     

提高小批量ODM企业敏捷性的方法研究

通过对现实中知识管理思想的应用与ODM企业在信息化进程中呈现出来的一些问题进行分析探讨,提出将两者结合运用,以知识管理思想指导企业的信息化进程,并采取“渐进式”的BPR技术,试图找出一条能有效提高小批量ODM企业敏捷性的途径。给出了一个已实现这一方法的企业案例,以说明方法的可行性,并分析其成功经验。     

Lessons from the ‘made in Switzerland’ study: What makes a world-class manufacturer?

Many executives are currently striving to develop world-class manufacturing operations to ensure that they remain competitive in increasingly global markets. To do this, they are adopting a range of practices, from organisational changes such as empowerment and teamwork to the use of techniques such as pull production. Their goal is to substantially improve performance: faster cycle times, reduced manufacturing costs and greater customer satisfaction.The question of how far companies have moved towards world-class manufacturing is at the heart of the ‘Made in Switzerland’ project, a major benchmarking study of Swiss manufacturing practice and performance. The study was carried out in 1995 by IMD faculty and researchers working with consultants from IBM Switzerland. It is part of the internationally-based ‘Made in Europe’ project comprising similar studies in the UK, Germany, The Netherlands and Finland.The central hypothesis of the studies is that the adoption of best practice leads to high performance. The objective is to establish a benchmarking database for participating manufacturers around the world. The studies, which are highly structured, examine six areas of manufacturing practice and performance in detail and assess the relationship between them at individual plants. The areas covered in the study are quality, organisation and culture, concurrent engineering, logistics, lean production and manufacturing systems.Plants in each country are grouped according to their position on the practice and performance indices and then studied in order to pinpoint the issues and challenges facing the manufacturers within that group. Less than three per cent of the 800 plants currently on the ‘Made in Europe’ database are considered ‘world-class’. Yet for manufacturers striving to reach this level of performance, this small minority can provide some valuable insights for the way ahead.This article discusses many of the issues raised by the analysis described above, with particular reference to the ‘Made in Switzerland’ study. In the first section, it looks at the key lessons arising from the Swiss study and what insights these can provide for manufacturers, not only in the Swiss market, but across Europe. In the second section, it looks at how the study can be used for benchmarking and provides manufacturers with some general recommendations to help them focus their improvements and move closer to becoming world-class.     

Engineering change: A theoretical assessment and a case study

The competitive playground where nowadays firms struggle to survive has rapidly become unforeseeable: product life cycle has shrunk, becoming even shorter than in the past, and world-wide market is suffering for a strong customer differentiation which led to an increasingly wide product mix. In this industrial environment, the engineering change process is getting more and more attention throughout the branches of industry, as it appears as a critical process which seeps into the operations management core, thus influencing the overall firm's performances. A brief state-of-the-art in the area of engineering change is firstly presented. Then a proposal of classification and a new methodology for an effective engineering change process management are suggested. The new proposed methodology has been successfully applied to a real-life manufacturing system and the related case study is reported at the end of the paper.     

Making sense of visual management through affordance theory

Visual management is much used within operations management practice, particularly in association with process improvement initiatives in diverse areas such as production and healthcare. The practitioner literature abounds with suggested best practice. However, there is little attempt to theorise about why the design and use of ‘visual’ devices for such process improvement works in practice. Within this paper we describe a novel theory of operation which highlights the role that material and visual artefacts proposed by visual management practitioners play within particular ways of organising work. We develop an innovative way of employing the theory of affordances to explain how first- and second-order affordances, situated around the visual devices at the heart of visual management, connect three domains of action, which we refer to as articulation, communication and coordination. Our analysis of three cases from healthcare, clothing manufacturing and software production help ground the theorisation discussed.     

Important Strategic and Tactical Manufacturing Issues in the 1990s*

This paper reports the identification and ranking of major manufacturing issues that American manufacturing managers and academics must focus on and resolve in the 1990s to be competitive on a global basis. Vice-presidents of manufacturing from over 75 companies across the United States were asked in a Delphi study to rank the key strategic and tactical issues facing American manufacturing in the next three to five years. Based on three rounds of a Delphi study, quality management, manufacturing strategy, and process technology emerged as the top ranked strategic issues. The top ranked tactical issues were quality control, manufacturing planning and control systems, and work force supervision. These issues were valid across diverse industry groups, since the industrial and educational background of the respondents was shown to have no impact on the final consensus rankings and opinions reported in this paper. Factor analysis of the responses by the panel revealed that certain issues tend to be consistently viewed together, and were interpreted accordingly to provide insights into the ranking of issues. Apart from building a consensus among experts on key manufacturing issues of present and future importance, this study can also be helpful for setting future academic research and pedagogical priorities for the field of production and operations management.