Systems Thinking in Manufacturing. Bhavya Lal ESD.83 November 13, 2001. Zhou Dynasty Bronze Wine Vessel 11th century B.C. Continuum of Systems Thinking. Shifts in Systems Thinking in Manufacturing Manufacturing becoming more systems driven
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Systems Thinking in Manufacturing Bhavya Lal ESD.83 November 13, 2001 Zhou Dynasty Bronze Wine Vessel 11th century B.C.
Continuum of Systems Thinking • Shifts in Systems Thinking in Manufacturing • Manufacturing becoming more systems driven • necessitated and facilitated by customer demand and availability of technology • System boundary shifting and systems getting more complex • around the “enterprise” rather than “process” • mass customization
Characteristics of Systems • Environment/Boundary - Manufacturing systems exist within an environment that is external to them the boundary "defines" the system • Parts - which are themselves systems • Processes - things go on inside the system that ensure that it fulfils its purpose and survives • Input and Output - things enter the system from the environment and enter the environment from the system • Dynamic - change in non-linear ways • Hierarchical, Complex etc.
Key System Characteristicsin the Context of Manufacturing • Manufacturing is an open system • interactions with the environment • eg supplier dependence, customer preferences, economy, availability of raw materials etc.
Key System Characteristicsin the Context of Manufacturing • Internal Processes, Structures and Interactions • things go on inside the system that ensure that it fulfils its purpose and survives • 12 variables • 66 linear (11+10 +.. +1) • 220 triangular relations 12!/(3!*9!)
Key System Characteristicsin the Context of Manufacturing • Feedback the control mechanism in manufacturing • measuring the output of the system, comparing the output with a standard and using any difference to modify subsequent input to ensure that the output conforms to the required standard
Craft Production • 1885 • machine then harden • fit on assembly • customization • highly skilled workforce • low production rate • high cost • Evidence of Systems Thinking • internal relationships among sub-tasks FEW • interactions with the environment MINIMAL • feedback loops ELEMENTARY, ONE?
Mass Production • Ford (1908) combined in an assembly line to mass produce the Model T • Eli Whitney - Interchangeable parts • Elihu Root - Division of labor • Oliver Evans - Continuous flow production • Frederick Taylor - Time and motion studies to improve efficiency of workers • After assembly line took off, a car took 10 seconds to assemble instead of 12 hours and 20 mts • William Durant (1904) recognized manufacturing as more than designing new products or improving production systems. Made GM/Chrysler large complex corporations
System Boundaries: Onion not Parfait • Layer 1: Around the Manufacturing Process Itself Input Process Output Feedback
Mass Production • Evidence of Systems Thinking • internal relationships among sub-tasks RISING • interactions with the environment MODERATE • feedback loops FEW • 1913 • parts interchangeability • moving production line • production engineering • workers as automatons • unskilled labor quality problems • high production inflexible • low cost
Toyota Production System (Lean) • Initially fed by information and automation, but soon realized needed new concepts - ways of thinking • lifecycle • overlapping steps • not solely concerned with the technology of making the widget but also with the role of people, the organizing processes and the relationships and interactions
Systems Boundaries II • Layer 2: Entire Manufacturing Enterprise HR Materials Management/ Purchasing Design Production Planning Prototyping Feedback Manufacture Shipping Sales Marketing
Toyota Production System (lean manufacturing) • 1955+ • workers as problem solvers • worker as process owner enabled by training, minimal inventory, JIT • eliminate waste • responsive to change • low cost • high productivity/quality • Evidence of Systems Thinking • internal relationships among sub-tasks TIGHT • interactions with the environment SIGNIFICANT • feedback loops TIGHT
Mass Customization • What it is • delivery process through which mass-market goods and services are individualized to satisfy a very specific customer need, at an affordable price. • serves as the ultimate combination of "custom-made" and "mass production." • rapidly emerging as the organizing business principle of the 21st century. • based on a product strategy, not just product Dell Computers
MC System Characteristics • Dynamic • Feedback loops • process tech loop • integrate design and sales before production • product tech loop • defines the product types, rates, features and options. • define all the associated marketing information • Technology Intensive • Interactive media, eg Internet • Shared customer information systems Source: http://www.managingchange.com/masscust/newpara.htm
System Boundaries III • Layer 3: Societal - Manufacturing a sub-part of society Transportation International markets Manufacture Enterprise Education Suppliers Competitors Government regulations Technological Change Import/export Society/Family Values
Mass Customization • 2000+ • small volumes - in many cases, lot sizes of one • competitive cost, timely deliveries • move away from centralized manufacturing to more distributed production. • a high degree of product/service flexibility, • reduced inventory risk, and a competitive edge in the marketplace. • Evidence of Systems Thinking • internal relationships among sub-tasks TIGHT • interactions with the environment BASIS OF APPROACH • feedback loops TIGHT
Why the Shift? New Paradigm • What has changed about manufacturing? • It is now globalized, networked, customized, digitized • This has changed the definition of manufacturing • old - transformation of raw materials into useful goods • new - general transformation of resources to meet human needs