The factory of the future

By Fransisca Dini Ariyanti,

Faculty member
Binus University

The factory of the future

Factories of the future must have
transformable structures in order to
master the increased turbulence that
began in the 1990s.
(Source : Handbook of Industrial Engineering, ch10, Gavriel Salvendy)
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THE CURRENT MARKET

SITUATION: NOTHING
NEW

Latest 30 years, companies should able to handle same

Market situation :
Market turbulence, high cost, competition pressure
the speed of change adds a new dimension to market
turbulence
product life cycle shows that innovation speed has increased
considerably in the last 15 years
Example : Siemens survey shows that sales of products
older than 10 years have dropped by two thirds over the last
15 years and now amount to only 7% of the companys total
turnover. In contrast, the share of products younger than 5
years has increased by more than 50% and accounts for
almost 75% of the current Siemens turnover
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The Changing Life Cycle of Siemens

Products. (From Kuhnert 1998)

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 Due to short product

life cycle, the first half
of the year, the sales
trend of some
product groups could
be predicted based
on past results, but
not possible for
second half year.

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Factory tranformability
an enormous adaptation effort on the part
of the company was required (see Figure
3).
The overall objective is to raise a
companys or factorys transformability,
the new determinant of corporate market
success.
Transformability is the ability to adjust
rapidly to increased turbulence and
recognize changing indicators early
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TRANSFORMABLE STRUCTURES TO
MASTER INCREASING TURBULENCE

Companys competitiveness can be

enhanced through improved technology ,
efficient combination of existing
technology with new company structures.
Factories of the future must have
transformable structures in order to
master the increased turbulence :
external structure networking and
self-organize and self-optimize structures
and processes internally enhance the
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CORPORATE NETWORK
CAPABILITY
Corporate network capability describes the capacity of an
enterprise to integrate both itself and its core competencies
into the overall company network.
This cooperation is continually optimized to benefit both the
individual company and the network, Benefit are :
1. Focus on their core competencies and profit from the
company networks integrated and comprehensive service
range.
2. The information flow in the company network is sped up by
the continual networking of suppliers and customers.
3. Get market changes information and adjustments in
consumer and supplier markets, thus respond proactively to
technological and market changes.
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Behr is an example of an
automobile supplier with high
network capability. The
companys focus is vehicle air
conditioning and motor cooling.
Its customers include all the
large European car
manufacturers. In order to offer
its customers a comprehensive
service range, Behr is involved in
numerous global and local
networks. In 1997 and 1998,
Behr joined six cooperation
projects with other automotive
suppliers in which the
cooperation partners were
distinguished by their expertise,
flat hierarchies, and
accompanying short information
and communication paths as well
as similar corporate culture.
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How to be come company with network

capability
Transform Corporate
? with self-organization and self-optimization,

The authority to make decisions is shifted to the value-adding

units, creating semiautonomous organizational units
semiautonomous units have to integrate management and
planning functions as well as coordinate functions to ensure global
optima and avoid local optima in financial
semiautonomous organizational coordinate with the
global/common profit target system
advantages of semiautonomous structures :
1. improved labor productivity
2. increased corporate transformability
3. better staff motivation, mean positively affects transformability

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Case study
A manufacturer of packaging machinery changes in the
organizational structure and the transition to self-optimizing
structures.
Before - company had a classical functional organization structure,
led to a high degree of staff specialization, which was
unsatisfactory in terms of the value-adding processes
After - semiautonomous units based on the fractal company which
performed all functions necessary for processing individual
customer orders.
New structure included organizational units that focused on
product groups for customized assembly processes.
Reducing the interfaces in the planning process and at the same
time adjusting the planning and control principles to the new
corporate responsibility structure cut the cycle time for producing a
machine by 60%.
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NEW METHODS & TOOLS FOR

PLANNING AND OPERATING
TRANSFORMABLE STRUCTURES

These methods and tools will speed up

processes also increase performance
quality and integrate existing methods.
1. Process Management through Process
Modeling, Evaluation, and Monitoring
2. Integrated Simulation Based on
Distributed Models and Generic Model
Building Blocks
3. Participative Planning in the Factory of
the Future
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Process Management through

Process Modeling, Evaluation,
and
Monitoring
Pemetaan dan evaluasi proses managemen menggunakan pendekatan
1.

2.

3.
4.

terpadu dan holistik, secara terus menerus , disesuaikan dengan

kecepatan perubahan. Tahap-tahapnya:
Pemodelan proses , untuk memetakan aliran proses sesuai
tingkat/spesifikasi, proses dapat digambarkan secara lebih rinci atas
beberapa tingkatan. Setiap modul proses dapat dilengkapi dengan fitur-fitur
seperti frekuensi, durasi, dan kondisi tertentu, SDm dan dokumentasi untuk
memungkinkan evaluasi alur kerja
Pada evaluasi proses dan optimasi panggung, struktur model proses
dievaluasi dan dioptimalkan dari sudut pandang yang berbeda sebelum
diteruskan ke tahap pemantauan proses yang berkesinambungan
Evaluasi dan optimalisasi proses didasarkan pada hasil kinerja : kualitas,
batas waktu, jumlah dan harga, dan biaya maksimal.
Pada tahap monitoring, perlu untuk mengumpulkan up-to-date angka
proses. Berdasarkan angka-angka kunci, di analisa variasi biayanya.
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Integrated Simulation Based on

Distributed Models and Generic
Model Building Blocks
Simulasi adalah metode penting untuk meningkatkan transformability
sistem, sistem produksi dapat dievaluasi selama operasi standar, startup dan periode fluktuasi. Dua metode simulasi :
Metode pertama menghasilkan modul perusahaan dan industri spesifik
yang dapat disatukan untuk menciptakan simulasi model individu.
dengan mengubah parameter tanpa membangun model baru
keseluruhan.
Metode kedua meningkatkan penciptaan model simulasi dengan
memungkinkan model terdistribusi yang berinteraksi melalui platform
umum atau protokol. Dengan demikian, berbagai alat khusus masalah
dapat dimasukkan ke dalam tindakan sehingga tidak perlu untuk
menerapkan alat tunggal untuk semua masalah.
Upaya pemodelan dan pemeliharaan dibagi oleh semua peserta. Oleh
karena itu, setiap Unit perusahaan semiotonom dan mitra di jaringan
perusahaan dapatBina
mempertahankan
dan mengadaptasi model sendiri.
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Participative Planning in the Factory

of the Future

Perencanaan partisipatif di lakukan karena kerjasama sangat

meningkatkan efisiensi dalam mencari solusi untuk masalah yang
kompleks
perencanaan pabrik interaktif menggunakan unsur-unsur virtual
dalam model komputer
Metode perencanaan interaktif ini perlu waktu perencanaan
singkat, tetapi tetap berkualitas tinggi.
berlaku untuk kasus-kasus perencanaan kualitas tertinggi yang
penting karena margin keuntungan yang rendah dan investasi
yang tinggi, dan tekanan waktu yang ketat, dan mitra dengan
pengetahuan yang ber beda-beda.

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The Integrated Evaluation Tool

for Companies

Balance scorecard dikembangkan oleh

(Kaplan dan Norton 1996), adalah
metode yang mudah dipahami
menyajikan data akuntansi
dikombinasikan dengan data proses lain
Balanced scorecard juga berfungsi
sebagai sistem peringatan dini untuk
sebuah perusahaan sehingga dapat aktif
merespon perubahan pasar.
Balanced scorecard membantu
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The Balanced Scorecard (BSC) - "One of the most important

management practices of the past 75 years" HBR
Measurement
and Reporting

Enterprise-wide
Strategic
Management

Alignment and
Communication

1992

2009

Articles in Harvard Business Review:

The Balanced Scorecard

Measures that Drive
Performance January February 1992

Putting the Balanced

Scorecard to Work
September - October 1993

Using the Balanced

Scorecard as
a Strategic Management
System January - February
1996

Endorsement by Gartner Group 2009:

The balanced scorecard methodology
developed by Drs. Kaplan and Norton
extends beyond financial measures to
link vision to action.
The Harvard Business Review has
acclaimed the balanced scorecard
as one of the most influential ideas
of the past 75 years

Source: Gartner Group; 2009

Feature Article:

The Balanced
is translated
into 18 languages
BusinessScorecard
Value of IT Non-financial
Measurements

Informed Risk Decisions

Based on presentation of Balanced Scorecard Collaborative

1996

2000

What is meant by Balanced

The task of developing a comprehensive strategy demands systematic consideration and
integration of various perspectives. We have to balance between financial and non-financial
considerations and apply a measure combination. The basic framework as conceived by Kaplan
and Norton, 1996 is presented below. The actual contents of each perspective are tailored to
the specific organizational/unit realities, needs and challenges.
For making the strategy explicit we use the Strategy Map/s

Financial
Perspective
Objectives
Key Performance Indicators
Targets
Initiatives

Customer
Perspective
Objectives
Key Performance Indicators
Targets
Initiatives

Internal Process
Perspective

Strategy

Learning & Growth

Perspective

Kaplan and Norton, 1996

Objectives
Key Performance Indicators
Targets
Initiatives

Objectives
Key Performance Indicators
Targets
Initiatives

What do we balance

Financial versus Non-financial measures

Tangible versus Intangible assets
Long-term versus Short-term Goals
Internal versus External Perspective
Performance Drivers versus Outcomes

Cause-effect relationships hypotheses

Example of the Basic Building Blocks of the Strategy

and displaying the strategys cause-effect hypotheses
Financial Perspective
Return on
Investment

Revenue
Strategy

Productivity
Strategy

Sources of Growth

Sources of Productivity

Customer Perspective

2. The value proposition of

target customers

Value Proposition
Price

Quality

Time

Function

1. The economic model of

key levers driving financial
performance

Image

Relatioship

Internal Process Perspective

Build the
Brand

Make the
Sale

Deliver the
Product

Service
Exceptionally

Learning & Growth Perspective

Staff
Competencies

Technology
Infrastructure

Source: Presentation of Balanced Scorecard Collaborative

Climate for
Action

3. The value chain of core

business processes

4. The critical enablers of

performance improvement,
change and learning

CONCLUSION

The transformability of future manufacturing structures will become an

important feature, enabling quick and proactive response to changing
market demands.
Transformable manufacturing structures, will focus to:
1. the accomplishment of factory structures that employ of the latest
technology.
2. Human beings, with their unique power for associative and creative thinking,
will then take a crucial part in guaranteeing the continuous adaptation of
factory structures.
Implementing transformability requires the application of new manufacturing
structures and enterprises.
These structures are distinguished by their capacity for external networking
and increased internal responsibility.
Combining new structures with new design and operation methods will lead
to factories exceeding the productivity of current factory structures by
quantum leaps.
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SEKIAN