Design and Planning of Production
EBS032A05
Pre-MSc Supply Chain Management & Technology and Operations Management
Lecture 1: Introduction..........................................................................................................................................................2
Lecture 2: Manufacturing Strategy....................................................................................................................................2
Lecture 3: Product Process Matrix.....................................................................................................................................5
Lecture 4: Resource Based View.........................................................................................................................................8
Lecture 5: Introduction Lean...............................................................................................................................................9
Lecture 6: Technical aspects of lean 1............................................................................................................................12
Lecture 7: Technical aspects of lean 2............................................................................................................................15
Lecture 8: Human Aspects of Lean...................................................................................................................................20
Lecture 9 (is embedded in lecture 3 of week 1).........................................................................................................23
Lecture 10: Small Batches...................................................................................................................................................23
,Lecture 1: Introduction
Two factories in Groningen
- Tecnovia Inaxxion: very modern, “factory of the future”
o Machining of parts
o Completely automated, almost no humans needed
- Werkman Hoofcare: world player in Horseshoes since 1909
Why does a seemingly old factory survive, and a new factory fail?
- (bankruptcy Tecnovia Inaxxion)
Lecture 2: Manufacturing Strategy
Two Factories in Groningen
- Tecnovia Inaxxion: very modern, “factory of the future”
- Machining of parts
- Completely automated, almost no humans needed
- Werkman Hoofcare: world player in HOrseshoes since 1909
- Why does a seemingly old factory survive, and a new factory fail?
- (bankruptcy Tecnovia Inaxxion)
Goals of this video lecture
- As engineers you look at machines and processes:
- How can we increase the speed of machine? Or improve the tolerances of production
- How can we streamline the flow of products through the factory?
- You can make something really efficient, but is it also effective?
- Always consider the Manufacturing Strategy in design of production systems
Operations Management (OM)
- Definition: area of management concerned with designing and controlling the process of
production and redesigning business operations in the production of goods or services
- Elements of a production system:
- Resources (machines, warehouses)
- People (operators, managers)
- Products (raw material & parts, finished products)
- Information (demand, stock levels, plans)
, - Basic question in OM: Why, when, and how do i get from raw materials to finished products? →
decisions!
- Strategic level: decisions which shape the long-term capabilities of manufacturing
- Design of operations: determine approach to production organization and production
control (NEXT VIDEO LECTURE)
- Operational control: day to day decisions (NEXT WEEK)
Manufacturing Strategy
Three scientific articles that help to structure these decisions:
1) Manufacturing strategy: Defining the missing link (the role of manufacturing in a company)
→ Wheelright, S. C. (1984). Manufacturing strategy: defining the missing link. Strategic management
journal, 5(1), 77-91
→ a manufacturing strategy provides the umbrella under which day-to-day operating decisions are
made
→ main choice: competitive priorities: what do you choose to be good at? Three ways to express this
choice: 1) Dominant orientation, 2) diversification patterns, 3) strategy of growth
→ Competitive priorities
- You can’t be the best in everything simultaneously. One, maybe for a few, but not all. So,
distinguish order winners from order qualifiers:
- Qualifiers: what is the minimum level of performance?
(don’t invest more than necessary)
- Winners: enables you to distinguish yourself. Make sure
to be on the performance frontiers with order winners,
otherwise, your competitors will be.
- Your competitive priorities must be congruent with the decisions
that you make at alle levels: identity, diversification, growth.
1st driving force: Dominant orientation
- Market: know what your customer want (Heineken, Apple)
- Product: to be an expert in a product, find new uses for it (Shell, Tata Steel)
- Technology: be able to exploit the newest technologies in your processes and products, push
them to the market (ASML, Tesla)
The dominant orientation drives your focus and culture. Mixing them is risky!!
2nd driving force: Diversification patterns; back to core business or expand?
- Multiple products in the same market (Suitsupply)
- Different markets with the ‘same’ products (Volkswagen/skoda)
- Multiple links in the SC (vertical): netflix originals (produces their own movies and series)
EBS032A05
Pre-MSc Supply Chain Management & Technology and Operations Management
Lecture 1: Introduction..........................................................................................................................................................2
Lecture 2: Manufacturing Strategy....................................................................................................................................2
Lecture 3: Product Process Matrix.....................................................................................................................................5
Lecture 4: Resource Based View.........................................................................................................................................8
Lecture 5: Introduction Lean...............................................................................................................................................9
Lecture 6: Technical aspects of lean 1............................................................................................................................12
Lecture 7: Technical aspects of lean 2............................................................................................................................15
Lecture 8: Human Aspects of Lean...................................................................................................................................20
Lecture 9 (is embedded in lecture 3 of week 1).........................................................................................................23
Lecture 10: Small Batches...................................................................................................................................................23
,Lecture 1: Introduction
Two factories in Groningen
- Tecnovia Inaxxion: very modern, “factory of the future”
o Machining of parts
o Completely automated, almost no humans needed
- Werkman Hoofcare: world player in Horseshoes since 1909
Why does a seemingly old factory survive, and a new factory fail?
- (bankruptcy Tecnovia Inaxxion)
Lecture 2: Manufacturing Strategy
Two Factories in Groningen
- Tecnovia Inaxxion: very modern, “factory of the future”
- Machining of parts
- Completely automated, almost no humans needed
- Werkman Hoofcare: world player in HOrseshoes since 1909
- Why does a seemingly old factory survive, and a new factory fail?
- (bankruptcy Tecnovia Inaxxion)
Goals of this video lecture
- As engineers you look at machines and processes:
- How can we increase the speed of machine? Or improve the tolerances of production
- How can we streamline the flow of products through the factory?
- You can make something really efficient, but is it also effective?
- Always consider the Manufacturing Strategy in design of production systems
Operations Management (OM)
- Definition: area of management concerned with designing and controlling the process of
production and redesigning business operations in the production of goods or services
- Elements of a production system:
- Resources (machines, warehouses)
- People (operators, managers)
- Products (raw material & parts, finished products)
- Information (demand, stock levels, plans)
, - Basic question in OM: Why, when, and how do i get from raw materials to finished products? →
decisions!
- Strategic level: decisions which shape the long-term capabilities of manufacturing
- Design of operations: determine approach to production organization and production
control (NEXT VIDEO LECTURE)
- Operational control: day to day decisions (NEXT WEEK)
Manufacturing Strategy
Three scientific articles that help to structure these decisions:
1) Manufacturing strategy: Defining the missing link (the role of manufacturing in a company)
→ Wheelright, S. C. (1984). Manufacturing strategy: defining the missing link. Strategic management
journal, 5(1), 77-91
→ a manufacturing strategy provides the umbrella under which day-to-day operating decisions are
made
→ main choice: competitive priorities: what do you choose to be good at? Three ways to express this
choice: 1) Dominant orientation, 2) diversification patterns, 3) strategy of growth
→ Competitive priorities
- You can’t be the best in everything simultaneously. One, maybe for a few, but not all. So,
distinguish order winners from order qualifiers:
- Qualifiers: what is the minimum level of performance?
(don’t invest more than necessary)
- Winners: enables you to distinguish yourself. Make sure
to be on the performance frontiers with order winners,
otherwise, your competitors will be.
- Your competitive priorities must be congruent with the decisions
that you make at alle levels: identity, diversification, growth.
1st driving force: Dominant orientation
- Market: know what your customer want (Heineken, Apple)
- Product: to be an expert in a product, find new uses for it (Shell, Tata Steel)
- Technology: be able to exploit the newest technologies in your processes and products, push
them to the market (ASML, Tesla)
The dominant orientation drives your focus and culture. Mixing them is risky!!
2nd driving force: Diversification patterns; back to core business or expand?
- Multiple products in the same market (Suitsupply)
- Different markets with the ‘same’ products (Volkswagen/skoda)
- Multiple links in the SC (vertical): netflix originals (produces their own movies and series)
