Handbook of Production Management Methods 0750650885-ch000-prelim.fm Page i Friday, September 7, 2001 4:52 PM 0750650885-ch000-prelim.fm Page ii Friday, September 7, 2001 4:52 PM Handbook of Production Management Methods Gideon Halevi OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI 0750650885-ch000-prelim.fm Page iii Friday, September 7, 2001 4:52 PM Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801-2041 A division of Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 2001 © Reed Educational and Professional Publishing Ltd 2001 All rights reserved. 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Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 5088 5 Typeset in India at Integra Software Services Pvt Ltd, Pondicherry 605 005 For information on all Butterworth-Heinemann publications visit our website at www.bh.com 0750650885-ch000-prelim.fm Page iv Friday, September 7, 2001 4:52 PM Preface 1 Trends in manufacturing methods 2 List of manufacturing methods 2.1 List of manufacturing methods 2.2 Classification of methods by type 2.3 Mapping the methods by main class 3 Mapping systems 3.1 Mapping by method objective 3.2 Mapping by functions that the method focuses on 3.3 Mapping the manufacturing methods 4 Decision-making method selection 4.1 Objective grading tables 4.2 Function grading tables 4.3 General selection method based on the decision table technique 4.4 Summary 5 110 manufacturing methods 5.1 Introduction to manufacturing methods 5.2 Brief descriptions of the 110 manufacturing methods Activity-based costing ABC Agent-driven approach Agile Manufacturing Artificial intelligence Autonomous enterprise Autonomous production cells Benchmarking Bionic manufacturing system Borderless corporation Business intelligence and data warehousing Business process re-engineering (BPR) CAD/CAM, CNC, Robots Computer-aided design and manufacturing 81 Cellular manufacturing 85 Client/server architecture 87 Collaborative manufacturing in virtual enterprises 88 Common-sense manufacturing CSM 90 Competitive edge 93 Competitive intelligence CI 95 Search addresses on the Web 98 Computer-aided process planning CAPP 98 Computer integrated manufacturing CIM 101 Concurrent engineering (CE) 105 Constant work-in-process CONWIP 109 Cooperative manufacturing 111 Computer-oriented PICS COPICS 112 Core competence 114 Cost estimation 117 Cross-functional leadership 119 Customer relationship management CRM 122 Customer retention 125 Cycle time management (CTM) 127 Demand chain management 128 Digital factory 130 Drum buffer rope (DBR) 133 E-business 135 E-manufacturing F2B2C 137 Electronic commerce 140 Electronic data interchange EDI 142 Electronic document management EDM 145 Enterprise resource planning (ERP) 146 Environment-conscious manufacturing ECM 150 Executive Excellence 153 Expert systems 155 Extended enterprise 156 Flat organization 156 Flexible manufacturing system FMS 159 Fractal manufacturing system 162 Fuzzy logic 165 Genetic manufacturing system 167 Global manufacturing network (GMN) 169 Global manufacturing system 170 Group technology 174 Holonic manufacturing systems (HMS) 179 Horizontal organization 184 House of quality (HOQ) 184 Human resource management HRM 184 Integrated manufacturing system IMS 188 Intelligent manufacturing system (IMS) 191 Just-in-time manufacturing JIT 194 Kaizen blitz 197 Kanban system 199 Knowledge management 201 Lean manufacturing 204 Life-cycle assessment LCA 207 Life-cycle management 207 Life-cycle product design 207 Manufacturing enterprise wheel 210 Manufacturing excellence 211 Manufacturing execution system (MES) 213 Master product design 216 Master Production Scheduling 219 Material requirements planning MRP 222 Material resource planning MRPII 224 Matrix shop floor control 225 Mission statement 227 Mobile agent system 229 Multi-agent manufacturing system 231 One-of-a-kind manufacturing (OKM) 234 Optimized production technology OPT 236 Outsourcing 237 Partnerships 241 Performance measurement system 243 Product data management PDM & PDMII 246 Product life-cycle management 249 Production information and control system PICS 251 Quality function deployment QFD 253 Customer value deployment CVD 254 Random manufacturing system 255 Reactive scheduling 257 Self-organizing manufacturing methods 260 Seven paths to growth 263 Simultaneous engineering (SE) 265 Single minute exchange of dies (SMED) 265 Statistical process control (SPC) 266 Strategic sourcing 268 Supply chain management 271 Taguchi method 274 Team performance measuring and managing 276 Theory of constraint (TOC) 277 Time base competition TBS 282 Total quality management (TQM) 284 Value chain analysis 288 Value engineering 290 Virtual company 292 Virtual enterprises 292 Virtual manufacturing 294 Virtual product development management (VPDM) 297 Virtual reality for design and manufacturing 297 Virtual reality 299 Waste management and recycling 302 Workflow management 304 World class manufacturing 307 Index Preface Manufacturing processes require a knowledge of many disciplines, including design, process planning, costing, marketing, sales, customer relations, cost- ing, purchasing, bookkeeping, inventory control, material handling, shipping and so on. It is unanimously agreed that each discipline in the manufacturing process must consider the interests of other disciplines. These interests of the different disciplines may conflict with one another, and a compromise must be made. Managers and the problems they wish to solve in their organization set particular requirements, and compromises are made by ‘weighting’ each of these requirements. Different organizations will have different needs and thus differently weighted requirements. More than 110 different methods have been proposed to improve the manu- facturing cycle. Each of the proposed methods improves a certain aspect or several aspects of the manufacturing cycle. The list of methods shows that some are of a technological nature, while others are organizational and archi- tectural, and yet others focus on information technology. Some are aimed at lead-time reduction, while others aim at inventory reduction, and yet others focus on customer satisfaction or organizational and architectural features. In some methods environmental issues are becoming dominating, while others focus on respect for people (workers); many of these proposed methods are based on human task groups. Such a variety of methods and objectives makes it difficult for a manager to decide which method best suits his/her business. The aim of this book is to present to the reader a brief description of pub- lished manufacturing methods, their objectives, the means to achieve the objectives, and to assist managers in making a method selection decision. To meet the objective, over 1000 published papers in journals, conferences, books, and commercial brochures were reviewed and summarized to the best of our ability. Other authors might consider some methods differently. We hope that we have been objective in our summations. The reader may refer to the bibliography to find further details of each method. Although some specific decision-making methods are described, they are not obligatory. They are used merely to demonstrate that a methodic decision can be made. Each manager should examine and decide how best to make this decision. The first chapter is an overview of the evolution of manufacturing methods and techniques. It main purpose is to show trends and how new technologies, such as computers, have been adapted and improved. Some of the adapted technologies failed while others were successful. 0750650885-ch000-prelim.fm Page vi Friday, September 7, 2001 4:52 PM Preface vii Chapter 2 lists the 110 manufacturing methods that are described in this book. Survey shows that many of the early-period methods are still in use in industry. Therefore this book presents known methods, regardless of their ‘age’. This chapter can be used as an index to the methods listed in Chapter 5. In addition the methods are mapped according to their type (Technological, Software, Management, Philosophical, Auxiliary) and according to the topics that they focus on. These rough mappings may assist in the selection of a group of methods to be considered. Chapter 3 considers method mapping by objectives and by Functions. Six- teen objectives are considered, including: rapid response to market demands, lead-time reduction, and progress towards zero defects (quality control). Twenty-four functions are considered, such as focus on cost, focus on enter- prise flexibility and focus on lead-time duration. Each of the 110 methods is graded for each of the 40 mapping categories. This grading has been done to the best of our ability, however, the user should not regard the gradings as absolutes – other ‘experts’ could arrive at alternative gradings. Chapter 4 proposes a general technique for decision-making. One manufac- turing method may support several objectives and functions, while the user might wish to improve several objectives. A decision-making table is described with several examples. Chapter 5 is the main part of the book, in which the 110 manufacturing methods are briefly described and for which a comprehensive bibliography is provided. Installing a manufacturing method might be a very expensive and time- consuming project. There is no one system that is best for everyone. We hope that this book will be of assistance in making the right decision, in selecting an appropriate manufacturing method/methods for specific company needs. Gideon Halevi 0750650885-ch000-prelim.fm Page vii Friday, September 7, 2001 4:52 PM [...]... exchange of dies Statistical process control Time base competition Theory of constraint Total quality management Value engineering Virtual product development management Virtual reality World class manufacturing 57 58 63 68 71 72 77 78 82 84 85 90 91 92 98 97 99 101 105 107 110 2.2 Classification of methods by type The list of manufacturing methods includes methods of many different types Some of the methods. .. List of manufacturing methods The trends in manufacturing methods in industry were presented in Chapter 1 Methods are described which have been used since the early 1960s up to the present time Survey shows that many of the early-period methods are still in use in industry, while many of the new methods are really only of academic interest Therefore this book will present known methods, regardless of. .. Trends in manufacturing methods The role of management in an enterprise is to: • implement the policy adopted by the owners or the board of directors • optimize the return on investment • efficiently utilize men, machines and money; and most of all – to make profit The manufacturing environment may differ with respect to: • size of plant; • type of industry; • type of production (mass production, job shop,... some methods environmental issues dominate (environment-conscious manufacturing), while others focus on respect for people (workers) and promote continual improvements, many of the proposed methods are based on human task groups Some of the proposed management methods are computerized versions of previous manual methods, for example, flexible manufacturing systems (FMS) are computerized versions of the... planning and routing production management: MRP, capacity planning, scheduling, dispatching, etc 0750650885-ch001.fm Page 2 Friday, September 7, 2001 4:53 PM 2 Handbook of Production Management Methods • • • • • • • • shop floor control economics purchasing inventory management and control costing and bookkeeping storage, packing and shipping material handling human resource planning Management s task... PM 16 Handbook of Production Management Methods IMS JIT LCA MES MRP MRPII OKM OPT PDM and PDMII PICS QFD SE SMED SPC TBC TOC TQM VE VPDM VR WCM Intelligent manufacturing system Just-in-time manufacturing Life-cycle assessment Manufacturing execution system Material requirements planning Material resource planning One -of- a-kind manufacturing Optimized production technology Product data management Production. .. resource management The plurality of goal conflicts which came up in the production field shows that the competitiveness of an enterprise cannot be fully guaranteed if solutions are used which cover only part of the whole production system All disciplines of an enterprise that are directly or indirectly involved in the production process have to be optimized all the time The potential benefits of implementing... data management – PDM and PDMII M M M P S S S S 0750650885-ch002.fm Page 22 Friday, September 7, 2001 4:56 PM 22 Handbook of Production Management Methods Focus on advanced organizational manufacturing methods 2 3 70 81 89 103 109 5 44 50 53 66 110 Agent-driven approach Agile manufacturing Master production scheduling Performance measurement system Seven paths to growth Virtual enterprises Workflow management. .. processing, and general management techniques Note: production costs are a parameter at all stages of production planning methods General methods are not included in this objective 3 Rapid response to market demands – product design This objective refers to methods that are aimed at decreasing the time from an idea for a product to the time that actual production starts This includes all production preparatory... turnround This objective refers to any methods or programs that deal with the subject of inventory management and control 7 Improve management knowledge and information – enterprise communication This objective refers to data collection methods and interpretation from all aspects of the enterprise, such as methods of converting information into useful knowledge and methods that capture ideas, technologies, . manufacturing methods 2 List of manufacturing methods 2.1 List of manufacturing methods 2.2 Classification of methods by type 2.3 Mapping the methods by. cycle. Each of the proposed methods improves a certain aspect or several aspects of the manufacturing cycle. The list of methods shows that some are of a technological