1 PM Historic Perspective 2017 2018 para PDF

Production Management
Gesto da Produo
2017/2018
Manufacturing systems and

production function evolution: an historic perspective
Course included in
Master (MSc) in Mechanical Engineering

Mestrado Integrado em Engenharia Mecnica
1
ppecas@tecnico.ulisboa.pt
Manufacturing systems and production function Production Management
evolution: an historic perspective. Gesto da Produo
Some Definitions
Operations Management
Consists in the design, the operation and the improvement of the
production systems that create the companys primary products.
Like marketing and finance, OM is a functional field of business
Marketplace
Corporate Strategy
Finance Strategy Operations Strategy Marketing Strategy
Operations Management
INPUTS OUTPUTS
People Plants Parts Processes
Planning and Control Systems

Materials Products
Customers Services
Production System
2
Some Definitions
Customer Satisfaction
Organizations are viable only if they provide satisfaction to the
costumer
The customer may be either outside or inside the organization
Analysing and
Integrating
Facility Resources Plans
Explicit Forecasts
Identification
and The Close Loop Supplying
Forecasting Facility
Facility of Customer
Satisfaction
Needs
From Customer Production/operations
Customer to Customer INPUTS
Satisfiers
Distribution Transformation
Facility OUTPUTS Facility
3
Some Definitions
Production Systems
Is the systems that uses operations resources to Transform Inputs
into some desired Outputs
Determinants of successful and continuous operation:
Quality, Reliability, Flow and Cost of the product and
Cash flow of the organization.
Requires a Framework of Resources and Functions Accomplishment
4
Production/operations management: A Framework
Five Ps: Concepo

do Produto
Product Planeamento
Controlo do Processo e da Produo
Equipamento de Produo
(Funciona- de Processos
Plant lidade,
Projecto, (Preparao
Planeamento
da Produo Processos de Fabrico Produto
(corte, enformao, injeco,
Processes Prottipos do Trabalho, Final
(Programao soldadura, fundio, montagem)
Testes) Mtodos e
e afectao de
Tempos)
Programmes recursos) (Mq.-Ferramenta, equip. auxiliar)
(Retroaco, Superviso, Optimizao)

People
CUSTOS E CAPACIDADES
Criatividade
(Ideias, conceitos)
Necessidades de mercado
(Especificao do Produto)
Inovao
(Inveno, I&DT)
5
Functions: Global procedure of manufacturing management
Long Range Medium Range

Technical Information
External information Forecast information
Production Plan
Strategic Production Aggregate Master Production

Planning Production Planning Scheduling
Material Requirements
Planning (MRP) Process Planning
Detail Capacity
Job Assignment Order Scheduling
Planning
Production Control Process Batch, Rate or

Flow
Short Range
6
Information flow
CIM - Computer
Integrated
Manufacturing (1990)
Global integration of
production functions,
supported by
information
technology systems
Examples:
CAD
CAM
MRP
ERP
CAPP
Etc.
7
Information flow
CIM - Computer Integrated Manufacturing
8
Competitive Strategies the evolution

Accelerating change is the only thing which is stable.Necker,1991
The factors influencing corporate action and development
globally are changing more and more rapidly.Pfeifer, 1994.
Changing values and structures in society

Increasing technological progress
Increasing demands on products and services
Changing market structure
Improving communication and transport technologies
9
http://www.ibaset.com/
10
http://www.slideshare.net/SPRICOMUNICA/basque-industry-40-the-fourth-
industrial-revolution-based-on-smart-factories 11
12
Industry 4.0
http://www.industries-4.com/
13
"Industrie 4.0" - Bosch
http://www.criticalmanufacturing.com/
Industry 4.0
http://www.hannovermesse.de/ 14
ppecas@tecnico.ulisboa.pt http://www.slideshare.net/KamolbhanOlapiriyakul/revolution-to-industry-4-55101213 15
most of the effort shall be put

into finding adequate substitutes
for materials and/or
processes enabling true change
towards eco-effectiveness.
The Positive Factory 4.0 (C. Herrmann et al. 2015)
16

Understanding past evolutions permits to anticipate and be
prepared to the next evolutions
Product market evolution
High demand Increasing requirements Internationalization Changing markets

Moderate competition Strong competition Tough competition Legal restrictions
Mass production Buyers market Shorter innovation Mass customization

Broad market Increasing variants and periods Globalization
ppecas@tecnico.ulisboa.pt complexity Environment concern 17

Quality market evolution
8000 BC to 1900 Companies
Quality Control Focus on the Product Characteristics
Reaction to defects at Present
1900 to 1950 Statistical Process Survival

Focus on the Product and Process Performance
Understanting Control
1950 to 1990 Focus on the Manufacturing Procedures Occasionally in the

Implementing Quality Assurance Quality Management and Specific Training
Quallity ISO9000:94 Market
1990 to 1995 Focus on Customer Satisfaction

Total Quality Consistent Market
Emphasis on Suppliers as partners
Assurance Continuous Improvement Zero Defects Share
customer needs
1995 Philosophy of Management

All organization 6 Sigma approach
Total Quality
involvement
Management
Quality as a cost reduction engine Market Leadership
Peoples Lean Thinking
empowerment (ISO9000:2004)
18

Labour market evolution
Highly functional Lack of workers Increasing prosperity Severe competition

division of activities Complex activities Leisure society Changing political
Simple activities conditions
Many unskilled Inflow of foreign Increasing expenses Flexibility of labour

workers employees High level of Motivation and self-
Increasing importance qualification organization
of qualification
19

Organization evolution
Few variants Increasing complexity High-complexity Process efficiency

Functional division of of products Little awareness of Extreme low
activities More planning required global business response time
process
One-dimensional, Severe functional Working in groups Lean structures

function oriented division Island principle Auto-control and
organization Matrix organizations Outsourcing responsabilization
Self-learning
structures
20
Production management paradigms evolution

1900 Taylorism (Frederick Taylor)
Standard method for performing each job.
Select workers with appropriate abilities for each job.
Training for standard task.
Planning work and eliminating interruptions.
Labour time should include rest breaks, to increase productivity
Wage incentive for increase output.
Created the Scientific Management:

Motions study
Time study
Quality control implementation
High productivity increasing

21

1910-1920 - Frank and Lillian Gilbreth
Process Charts
Methods study:
Identifying the elemental motions in work
Combination of these motions to form methods of operation
Basic time of each motion took.
Elements characterization what value added
Micro-motion elements quantification
Methods study should precede Time Study
Workers motivation study
Influence of workers attitudes in the process outcome
Rough idea of Eliminating Waste

Workers motivation increasing
Taking advantage of some workers ideas
22

1910-1939 Ford System (Henry Ford)
Assembly lines continuous system for Model T
manufacturing - 10 million were sold
Flow lines to supply the Assembly Line
The entire productive process is design to assure high
production rate assembly line and standardization
Low influence of worker skill and attitude
The concept of Mass Production was created
System based in (and very dependent on):

Desperate labour force
No product variation (any colour if black !)
Inexistence of labours unions
Ford System created several production management
principles that are excellent and use at present
23
Evolution of production attributes

< 1900 1900-1939 >1990
Focus Task Product Customer
Synchronize flow &
Operations Single items Batch & queue
pull
Reduce cost & Reduce waste & add
Overall aim Mastery of craft
increase efficiency value
Inspection (a 2nd Prevention (built in by
Quality Integration (part of craft)
stage after production) design & methods)
Business Economies of scale & Flexibility &
Customization
strategy automation adaptability
Workforce driven
Master driven Expert driven periodic
Improvement continuous
continuous improvement improvement
improvement
24

The concepts
MASS PRODUTCION
The manufacturing of large quantities of standardized products efficiently,
frequently based on assembly line technology).
AIM: to fulfill an almost infinite market with progressively lower price product.
MASS CUSTOMIZATION
It must be produced ONLY What was demand from the costumer, How
much demand from the customer and When was demand from the
customer, in the shorter period of time and with the lower possible cost.
AIM: to satisfy each customer with an high performance product, adjusting
permanently the product value (price&quality) to the competing ones.
Relation of Price, Cost and Profit:

Infinite Market: Cost + Profit = Price
Competitive and Customer Demanding Market: Price Cost = Profit
25

1940-1960 Total Quality Management
Statistical Process Control and Quality Simple Tools (Ishikawa)
14 points to achieve Zero Defects (Deming and Juran)
Single-Minute Exchange of Die (Shingo)
Off-Line Quality control (Taguchi)
1950 Toyota Production System (Taichii Ohno and Shingo)

Just-in-Time philosophy dramatic reduction of stocks
Partnership with suppliers and customers Pull Production and Kanban
Reduction of Setup time Small batches and high flexibility
Quality assurance at the source Zero Defects
Peoples empowerment Motivation, self-control and flow of ideas
Continuous improvement philosophy Kaizen events and quality circles
Cellular manufacturing elimination of waits and improve quality
26
1950 Toyota Production System

27

1980 to 1990 World Class Manufacturing
Based on the main goals of the TPS
It includes the principles of Lean Manufacturing
28

1990-2010 Lean Manufacturing
29

1990-2010 Lean and Agile Manufacturing
30
Lean Thinking
Lean = Eliminating WASTE
Types of Waste (muda) by Taiichi Ohno
Overproduction
Inventory Waste
Waiting Time
Transportation
Processing Waste
Motion Waste
Product Defects
Waste understood as anything that consumes resources and does not create Value
31
Lean Thinking
Lean Principles antidote to waste

SPECIFY VALUE Customer
Identify the VALUE STREAM Follow the Product
FLOW the product Eliminate Waste
PULL Produce Just in Time
PURSUE PERFECTION Improve continuously
32
Lean Thinking
http://quotesgram.com/lean-principles-quotes/
33
Evolution of production attributes and paradigms

CRAFT FLOW PRODUCTION LEAN THINKING
Focus Task Product Customer
Synchronize flow &
Operations Single items Batch & queue
pull
Reduce cost & Reduce waste & add
Overall aim Mastery of craft
increase efficiency value
Inspection (a 2nd Prevention (built in by
Quality Integration (part of craft)
stage after production) design & methods)
Business Economies of scale & Flexibility &
Customization
strategy automation adaptability
Workforce driven
Master driven Expert driven periodic
Improvement continuous
continuous improvement improvement
improvement
34
Readings
E. Henriques, P. Peas, Chapter 1, Gesto da Produo -
Introduo Gesto das Operaes, 2003.
Chase, Aquilano, Jacobs, Chapter 1 and 2, Production and
Operations Management, McGraw-Hill, 1998.
Also recommended:
E. Goldratt, J. Cox, The Goal, MPG Books, 1993.
http://www.strategosinc.com/
http://www.lean.org
35

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Production Management

Manufacturing systems and

Master (MSc) in Mechanical Engineering

Finance Strategy Operations Strategy Marketing Strategy

People Plants Parts Processes

Planning and Control Systems

Production/operations management: A Framework

Five Ps: Concepo

(Retroaco, Superviso, Optimizao)

Functions: Global procedure of manufacturing management

Long Range Medium Range

Strategic Production Aggregate Master Production

Production Control Process Batch, Rate or

Competitive Strategies the evolution

Changing values and structures in society

Competitive Strategies the evolution

Competitive Strategies the evolution

Competitive Strategies the evolution

Competitive Strategies the evolution

Competitive Strategies the evolution

"Industrie 4.0" - Bosch

Competitive Strategies the evolution

Competitive Strategies the evolution

most of the effort shall be put

The Positive Factory 4.0 (C. Herrmann et al. 2015)

Competitive Strategies the evolution

High demand Increasing requirements Internationalization Changing markets

Mass production Buyers market Shorter innovation Mass customization

Competitive Strategies the evolution

1900 to 1950 Statistical Process Survival

1950 to 1990 Focus on the Manufacturing Procedures Occasionally in the

1990 to 1995 Focus on Customer Satisfaction

1995 Philosophy of Management

Competitive Strategies the evolution

Highly functional Lack of workers Increasing prosperity Severe competition

Many unskilled Inflow of foreign Increasing expenses Flexibility of labour

Competitive Strategies the evolution

Few variants Increasing complexity High-complexity Process efficiency

One-dimensional, Severe functional Working in groups Lean structures

Production management paradigms evolution

Created the Scientific Management:

High productivity increasing

Production management paradigms evolution

Rough idea of Eliminating Waste

Production management paradigms evolution

System based in (and very dependent on):

Production management paradigms evolution

Evolution of production attributes

Production management paradigms evolution

Relation of Price, Cost and Profit:

Production management paradigms evolution

1950 Toyota Production System (Taichii Ohno and Shingo)

Production management paradigms evolution

1950 Toyota Production System

Production management paradigms evolution

Production management paradigms evolution

Production management paradigms evolution

Lean Principles antidote to waste

Production management paradigms evolution

Evolution of production attributes and paradigms

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