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Manufacturing Systems: Foundations of World-Class Practice (1992)

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159
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MANUFACTURING SYSTEMS: FOUNDATIONS OF WORLD-CLASS PRACTICE

enterprise as a cohesive whole, rather than as a set of discrete functions and organizations, raises some interesting issues. One issue is the interrelationships that organizations have and the changes necessary in these relationships to create a cohesive whole. This requires new thinking about how the various elements of an organization work together, organize, behave, relate, and measure; what they value; and how they are motivated. Timely solution of customer problems requires that a manufacturer have some collective unity and focus before a specific customer need is identified. Successfully addressing this interrelationship will allow us to develop the framework for an integrated organization. This unity will come by focusing on the operating excellence required by all customers and will be recognized through an operating vision that demonstrates that excellence. This vision encompasses the following elements:

  • Products and processes that “never fail.”

  • Shortest cycle time in the industry.

  • Competitiveness independent of volume.

  • Leadership in defining industrywide manufacturing excellence.

  • Leadership in the development of the best people.

This vision can be realized only in an environment that encourages a “learning process,” the mechanism that draws knowledge from the disciplines critical for success. Finally, the elements of a manufacturing enterprise need to view themselves from the perspective of the task that must be accomplished, not the organization in which they are members.

For example, a key manufacturing metric is cycle time. In traditional manufacturing, cycle time refers to the period of time required to produce the product. That is the duration of the production cycle in creating a finished good. Within the context of the Integrated Enterprise, cycle time is redefined as beginning when the customer expresses a need and ending when that need is fulfilled. It includes time for problem identification, sales, order processing, supplier delivery, design, assembly, shipment, invoice, installation, and service. Each element in this process and its relationship to other elements must be considered in order to reduce cycle time. The “ task” of reducing cycle times must be viewed in a broader context to identify all the variables that effect cycle time. Therefore, the definition of cycle time must extend beyond the traditional structures in order to encompass all the variables.

A second issue concerns developing the trust required to encourage a successful team orientation. What allows individuals to act as one, is having equal access to the information and knowledge that describe and justify the task. When people are excluded from information and knowledge, they should not be expected to act in unison. A supplier unfamiliar with marketing plans and product strategies cannot fully provide the resources and

Page
159
Front Matter (R1-R10)
Report of the Committee on Foundations of Manufacturing (1-2)
Executive Summary (3-8)
Introduction (9-13)
Overview (14-26)
Management Practice (27-42)
Measuring, Describing, and Predicting System Performance (43-60)
Organizational Learning and Improving System Performance (61-77)
Educational and Technological Challenges (78-82)
Globally Competitive Manufacturing Practices (83-84)
Involvement and Empowerment: The Modern Paradigm for Management Success (85-92)
Implementation Projects: Decisions and Expenditures (93-99)
Benchmarking (100-106)
Improving Quality Through the Concept of Learning Curves (107-115)
Organizing Manufacturing Enterprises for Customer Satisfaction (116-127)
Customer Satisfaction (128-136)
The Interface Between Manufacturing Executives and Wall Street Visitors--Why Security Analysts Ask Some of the Questions That They Do (137-148)
Taylorism and Professional Education (149-157)
The Integrated Enterprise (158-165)
Time as a Primary System Metric (166-172)
Communication Barriers to Effective Manufacturing (173-179)
Are There 'Laws' of Manufacturing? (180-188)
Taking Risks in Manufacturing (189-195)
Constant Change, Constant Challenge (196-203)
Manufacturing Capacity Management Through Modeling and Simulation (204-214)
The Power of Simple Models in Manufacturing (215-223)
Improving Manufacturing Competitiveness Through Strategic Analysis (224-232)
Going to the Gemba (233-237)
Jazz: A Metaphor for High-Performance Teams (238-244)
Consolidated Bibliography (245-253)
Committee Membership (254-255)
Biohgraphies of Contributing Authors (256-262)
Index (263-273)