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Result of Key Manufacturing task:

Greater Simplicity Lower Costs Support organization & Manufacturing

directed towards successful competition

Developing explicit, Brief corporate objectives & Strategy for 3 to 5 years Corporate Objective by Market share for next 5 years via a strategy:

Customization of product as per customer

needs Offering advanced & Special product features at a modest price increment Gaining competitive advantage via rapid product development & service orientation to all size of customers

Translating objectives and strategy into plant level:


How to achieve corporate objective and

support strategy Weaknesses to achieve the objective Identifying probable area of failure Loosing one of the elements, but gain in overall combination of some of them Introduction of new customized products, with lower lead times as compared to competitors Introduction of new process, so as to overcome technical problems, maintain reliability & acquiring rapid changes

Careful examination of each element of the production system:

Reorganization of elements of structure to produce a congruent focus which gives the ability to do most important and limited things well to complete task
E.g. If the company is currently involved in the 5

How it is setup, organized, focused and manned Identifying strength of production systems How to implement the key manufacturing task?

different products, technologies, markets or volumes, does it need five plants, five sets of equipment, five processes, five technologies and five organizational structures? But the practical solution need not involve selling the big multi-purpose facility and decentralization into 5 small facilities

More Practical approach Plant Within a Plant (PWP)


PWP facility divided both organizationally &

physically into 5 PWPs Each PWP has its own facilities, which concentrate with manufacturing task, own work force management approaches, Production control etc. Quality & volumes levels are not mixed Clear focus on worker training and incentives, as per expertise on engineering processes, equipment & Materials handling.

Production System elements

Present Approach (Conventional Factory)

Implicit Manufacturing tasks of present approach


Low manufacturing costs on a steady runs of a few large products with minimal investment

Changed approach (Focused Factory)

Equipment & Process Policies

1. One Large Plant 2. Special Purpose equipment 3. High volume tooling 4. Balance Capacity with functional layout

1. Separate old, standardized products & new customized products into 2 PWP 2. Provide general purpose equipment 3. Temporary tooling & modest excess capacity with product oriented layout 1. Create fewer jobs with more versatility 2. Pay for breadth of skills & ability to perform a variety of jobs 3. Provide more foremen for solving technical problems at workplace

Work-Force Management Policies

1. Specialized job with narrow job content 2. Incentive Wages 3. Few Supervisors 4. Focus on volume Production hour

Low costs and efficiency

Production Present Approach System elements (Conventional Factory)


Production scheduling & Control 1. Detailed, frequent sales forecasts 2. Produce for inventory economic lot sizes of finished goods 3. Small decentralized production scheduling group

Implicit Manufacturing tasks of present approach


Short Delivery lead times

Changed approach (Focused Factory)


1. Produce to order special parts & stock of common parts based on semi-annual forecast 2. Staff production control to closely schedule and centralized parts movements No Change

Quality Control

Control engineers and large inspection groups in each department

Extremely reliable quality

Organizational Structure

1. Functional 2. Production under super indents of each area 3. Inspection reports to top

Top performance of the objectives of each functional department i.e. many tasks

1. Organize each PWP by program and project in order to focus organizational effort bringing new products smoothly and on time

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