1. Chapter 3 MANAGING THE TRANSFORMATION PROCESS

2. Issues in Transformation Process
Issue #1: Investment in Technology
Is your technology increasing your competitive advantage?
The decision is about the right technology for the right reason.
Technology is dynamic, and must be integrated with other areas, such as human skills and capabilities, and financial aspect
Invest or not to invest? Yes/No? – Justification in investment!
has to go beyond simply replacing labour costs to the principle of competitive advantage in other areas, such as product quality, delivery speed and delivery reliability.
Issue #2:The process choice
The decision about the appropriate method and process (technology) transforms inputs into products within the plant
Must the understand the layout. The layout decision will have the impact on the process choice

3. Fixed-Position Layout
Product remains in one place
Workers and equipment come to site
Complicating factors
Limited space at site
Different materials required at different stages of the project
Volume of materials needed is dynamic

4. Process-Oriented Layout
Surgery
Radiology
ER triage room
ER Beds
Pharmacy
Emergency room admissions
Billing/exit
Laboratories
Patient A - broken leg
Patient B - erratic heart pacemaker
Figure 9.3

5. Process-Oriented Layout
Arrange work centers so as to minimize the costs of material handling
Basic cost elements are
Number of loads (or people) moving between centers
Distance loads (or people) move between centers

6. Product-Oriented Layout
Organized around products or families of similar high-volume, low-variety products
Volume is adequate for high equipment utilization
Product demand is stable enough to justify high investment in specialized equipment
Product is standardized or approaching a phase of life cycle that justifies investment
Supplies of raw materials and components are adequate and of uniform quality

7. Product-Oriented: assembly line

8. Cellular Layout
Cellular Layout :small teams of workers handle all aspects of building a component, a “family” of components, or even a finished product.
Each team works in a small area, or cell, equipped with everything that it needs to function as a self-contained unit.
Machines are sometimes configured in a U-shape, with people working inside the U.
Because team members often share duties, they’re trained to perform several different jobs. Teams monitor both the quantity and the quality of their own output.
This arrangement often results in faster completion time, lower inventory levels, improved quality, and better employee morale.

10. Process Choice Process Choice Layout Project processes: Unique
Not repeated
Large Scale
Complex
Example: House / ship building
Fixed Position layout

11. Process Choice Process Choice Layout Job processes: ‘one-off’ design
general purpose process technology
Many different products materials handling has to be modified to suit many different products and types.
Process Oriented layout

12. Process Choice Process Choice Layout Line processes:
Big volume
greater standardization
Value and cost are added at each stage of manufacture until the product is
completed.
The line is dedicated to a particular product
Short processing times
Workstations located closely to minimize materials handling
Materials flow and control is critical and stock-outs have to be avoided.
Product/Assembly layout

13. Process Choice Process Choice Layout Continuous processes:
Very high volume product
the process is dedicated to making only one product.
Huge investment for automation
Example:
Steel manufacturer
Food processing
Product layout

14. Summary the link between process choice and layout

16. Process choice and competitive factors

18. From Pure Standardization to Pure Customization

19. Flexible Manufacturing System
Flexible manufacturing is an element of mass customization
Where mass production’s process ‘strategy’ emphasized efficiency in production, modern world-class manufacturing firms emphasize product quality, differentiation and any other factor perceived to be important for customers.

20. Illustration example of a FMS

21. FMS Example Body Shop Paint Shop Final Assembly
Through the use of reprogrammable tooling in the body shop, standardized equipment in the paint shop and common build sequence in final assembly, Ford can build multiple models on one or more platforms in one plant.
In the body shop, where the sheet metal comes together to form the vehicle’s body, flexibility means more than 80 percent of the tooling is not specific to one model. It can be reprogrammed to weld a car or a truck or a crossover of similar size.
Body Shop
In the paint shop, flexibility means robotic applicators are programmed to cover various body styles – as they move through the paint booth – with equal precision. This results in minimizing waste and environmental impact while maximizing quality.
Paint Shop
In the final assembly area, flexibility means the build sequence is the same among multiple models on one or more platforms allowing for efficient utilization of people and equipment.
Final Assembly