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. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE. 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 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 0750650885-ch000-prelim.fm Page viii Friday, September 7, 2001 4:52 PM [...]... 9 11 13 18 26 43 51 54 55 56 58 59 60 62 69 70 77 79 81 83 89 93 94 96 0750650885-ch002.fm Page 18 Friday, September 7, 20 01 4:56 PM 18 Handbook of Production Management Methods 23 25 27 29 30 35 40 41 44 46 48 50 52 53 57 63 64 65 66 67 73 74 76 80 85 86 87 88 97 10 0 10 5 10 7 11 0 1 7 10 19 20 21 24 Cooperative manufacturing Core competence Cross-functional leadership Customer retention Cycle time management. .. system 1 11 12 12 21 18 CNC CONWIP COPICS CRM CSM CTM DBR E-business E-commerce ECM EDI EDM ERP F2B2C FMS GMN HMS HOQ HRM IMS 20 12 22 24 28 16 30 33 34 36 40 37 38 39 35 45 49 52 54 55 56 0750650885-ch002.fm Page 17 Friday, September 7, 20 01 4:56 PM List of manufacturing methods 17 Manufacturing method Method number Method type M M M M M M M M M M M M M M M M M M M M M M M M M M 98 99 10 1 10 3 10 8 10 9... manufacturing Virtual product development management – VPDM 0750650885-ch002.fm Page 15 Friday, September 7, 20 01 4:56 PM List of manufacturing methods 15 10 6 10 7 10 8 10 9 11 0 Virtual reality for design and manufacturing Virtual reality Waste management and recycling Workflow management World class manufacturing Some of the methods are referred to by their abbreviations Although the abbreviations are given... operation of an enterprise to one that encompasses both technological and managerial operations of an enterprise as an integrated manufacturing operation From the late 19 80s to the late 19 90s there were tremendous advances in the field of computer science The technological problems that inhibited the 0750650885-ch0 01. fm Page 10 Friday, September 7, 20 01 4:53 PM 10 Handbook of Production Management Methods. .. organization House of quality – HOQ Human resource management – HRM Integrated manufacturing system – IMS Intelligent manufacturing system – IMS Just-in-time manufacturing – JIT Kaizen Blitz Kanban system Knowledge management 0750650885-ch002.fm Page 14 Friday, September 7, 20 01 4:56 PM 14 Handbook of Production Management Methods 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86... made the centrepiece of the architecture of the system because they must be the overall driving force and controllers of the functions to be performed in the plant The basic technology and engineering data is supplied by the human user who also makes 0750650885-ch0 01. fm Page 11 Friday, September 7, 20 01 4:53 PM Trends in manufacturing methods 11 logical decisions Most of the proposed methods emphasize... will be able to select a method that is most suited to his/her organization 0750650885-ch002.fm Page 13 Friday, September 7, 20 01 4:56 PM List of manufacturing methods 13 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Competitive intelligence – CI Computer-aided process planning – CAPP Computer integrated manufacturing... 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 10 0 10 1 10 2 10 3 10 4 10 5 Lean manufacturing Life-cycle assessment – LCA Life-cycle management Life-cycle product design Manufacturing enterprise wheel Manufacturing excellence Manufacturing execution system – MES Master product design Master production scheduling Material requirements planning – MRP Material...0750650885-ch0 01. fm Page 2 Friday, September 7, 20 01 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 is to make sure that the requirements of all disciplines are considered and... 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 . manufacturing CIM 10 1 Concurrent engineering (CE) 10 5 Constant work-in-process CONWIP 10 9 Cooperative manufacturing 11 1 Computer-oriented PICS COPICS 11 2 Core competence 11 4 Cost estimation 11 7 Cross-functional. September 7, 20 01 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. leadership 11 9 Customer relationship management CRM 12 2 Customer retention 12 5 Cycle time management (CTM) 12 7 Demand chain management 12 8 Digital factory 13 0 Drum buffer rope (DBR) 13 3 E-business