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Handbook of Production Management Methods
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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
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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
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A catalogue record for this book is available from the British Library
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A catalogue record for this book is available from the Library of Congress
ISBN 0 7506 5088 5
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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.
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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
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[...]... 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
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