Development of Modular Integrated Systems Strategy in Formulating a Manufacturing Strategy - Case Study Example

Appendix I Investigate existing practices at low cost! A0 Modern Concepts Checklist A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A11 A12 - Just-in-Time/Cellular Manufacture - Total Quality Management - Advanced Manufacturing Technology - Total Productive/Preventative Maintenance - Flexible Manufacturing Systems - Manufacturing Resources Planning (MRPII) - Computer Aided Tools: CAD, CAM, CAPM, CAE - Computer Integrated Manufacture - Modular Integrated Systems Strategy - Continuous Improvement - Human Resource Management - Business Process Re-Engineering B0 Work Study B1 B2 B3 B4 B5 - Method Study - Time Study - Synthesis/Analytical Estimating - Work Sampling Techniques - Predetermined Motion Time Systems (PMTS) C0 Quality and Reliability C1 C2 C3 C4 C5 - Acceptance Sampling - Mean and Range Charts (SPC) - Attribute Control Charts - Cumulative Sum (Cusum) Charts - Failure Mode and Effect Analysis (FMEA) D0 Variety and Value D1 D2 D3 D4 D5 - Classification and Coding - Pareto/ABC Analysis - Value Analysis - Variety Reduction - Group Technology Appendix II Checklist for the Rebuild and Re-design of Major sub-systems based on module 5 Check list 1. FACTORY LAYOUT e.g. Cellular manufacture and Group Technology GT Activities to include: - Machine and capacity analysis - Processes - Set-up times - Machine times and batch times - Loading of machines - Tooling change overs - Infinite capacities - Preventative maintenance 2. PRODUCTION PLANNING AND CONTROL SYSTEMS e.g. Low inventory manufacturing and material flow movement Activities to include: - Throughout times/production volumes - Work-in-progress - Minimise inventory - Synchronise material flow - Plant and material flow - Materials handling - Product model mix and variability - Forecasting/MPS - Bills of Materials - Routing - Capacity Planning - Scheduling rules - Priority work sequence - Uniform work loads - Work/cost centres - Picking lists - Inventory/stock control - Factory loading 3. ORGANISATION AND OTHER MANAGEMENT SYSTEMS e.g. Management of Change Activities to include: - Work and Method study - Value analysis/value engineering - Product design - Quality procedures - Maintenance procedures - Incentive and productivity deals - Environmental issues 4. ADVANCED TECHNOLOGY e.g. Any new technology Activities to include: - Not required at this stage! Appendix III Development of Rules, Guidelines and Checklists for MISS Implementation! Number Checklist General Rules Major sub-systems Integration of MRPII rules and guidelines into the major sub-systems Bills of Materials (BOM) Routing Capacity Decision rules Quality Assurance Simulation Jigs and Fixtures Knowledge systems 12 6 1 4 5 6 1 6 1 3 2 Appendix IV Estimated Time-span for Implementation Checklist Module 1 4 weeks Module 2 1 week Module 3 12 weeks Module 4 12 weeks Module 5 1 week Module 6 12 weeks Module 7 1 week Module 8 8 weeks Module 9 4 weeks Module 10 Daily Estimated Total Time 55 weeks Appendix V Monitoring and Feedback Mechanism after implementation (CI) for modules 1-9 Running Head: Manufacturing Strategy and MISS Development of Modular Integrated Systems Strategy (MISS) in formulating Manufacturing Strategy [Author’s Name] [Institution’s Name] Manufacturing Strategy Manufacturing strategy is an important part of the manufacturing activities. The term manufacturing strategy basically refers to the decision making issues and problems that the managements of the manufacturing companies have to handle during their manufacturing practice to achieve their manufacturing objectives by linking the performance measures to their manufacturing activities and functions (Bin, 1994). The manufacturing strategy deals with the decisions of the management related with the matter that how will they manufacture the product, how the resources will be deployed in the production process and how will they arrange and organize the necessary infrastructure to support the activities of the manufacturing process. Manufacturing strategy is a broad term that covers wide range of decisions and policies that the management of the manufacturing sector has to take to assure the conduction of their work in the right direction of the attainment of their objectives. It basically requires the management of the manufacturing firm to take the major decision regarding some of the key issues. The first and most important issue in front of the manufacturing firm is to define their activities, type of manufacturing products and the methods of manufacturing. Along with that the management also has to decide that how should they adopt the strategies through which the entire manufacturing process will contribute to the competitive advantage of their business. These issues are resolved by the manufacturing companies under their manufacturing strategy as the core decisions regarding these issues are taken by the management under the manufacturing strategy designing and adoptability (Chase and Aquilano, 2000). The manufacturing strategy plays integral part in determining the performance and success of a manufacturing sector because the determination of the long term goals as well as the objectives of manufacturing companies are based on the manufacturing strategy adopted by the manufacturing firm. (Chen and Small, 1994) The roots of manufacturing strategy could be traced back to the Harvard Business Review article, "Manufacturing- Missing Link in Corporate Strategy" by Skinner in 1969. In this article the writer suggested that the supervisors of the manufacturing system must adopt a top down strategy in their business operations. Skinner (1985) further explains the concept and objectives of the manufacturing strategy as broad array of activities that range from different structural as well as infrastructural decisions that are taken by the management of a manufacturing firm with the intention of determining the capabilities of their manufacturing system (Skinner, 1985). Integrated Manufacturing strategy is all about the coordination of the objectives and actions of company that are applied within the functions of the manufacturing sector. The main intention of this coordination is the attainment of the medium as well as long terms objectives of the firm. The main intention of the manufacturing strategy is also to bring the manufacturing company in to the position where it can compete well with the domestic as well as foreign firms both at domestic and international level. The manufacturing companies operating in different sectors give much importance to the manufacturing strategy because the critical importance of the manufacturing strategy for the success of the entire manufacturing process is realized by most of the experts and specialists operating in the manufacturing field. (Grant et al, 1991). Manufacturing Strategy development framework for SMEs The development of effective manufacturing strategy is an important and critical issue for the SMEs operators because the SMEs tend to play a defining role in the economic development of a country. It is possible only through the formulation and adaptation of efficient manufacturing strategy that assure the success and high level performance of the enterprise. The failure of SME in increasing their productivity is also due to the fact that many SMEs are commonly found operating without an adequate manufacturing strategy. There are certain steps and frameworks designed by the experts to assist the SMEs in the development of their manufacturing strategy. The concept of Manufacturing Integrated Systems Strategy (MISS) possesses great importance in the context of manufacturing strategy development of the SMEs because it allows the companies to organize all the manufacturing process related activities in a manner that all the activities and operations are supported and complimented by each others. It allows the SMEs to focus upon each and every aspect of the business that has the potential to affect the process or outcome of the manufacturing operations. The MISS framework consists of 10 modules and there are different steps, guidelines, analysis, strategies and checklists included under each module so provide the SMEs with comprehensive tool of managing manufacturing strategy through extensive research and analysis work. Below is the flow chart of MISS framework to show different steps and modules. Figure 1 – The MISS Flow Process MISS framework for Our Own Corporation Limited (OOCL) The modules included in the MISS framework provide extensive information about the analysis and research work that is needed for the development of manufacturing strategy of any SMEs using the MISS framework. These modules are followed to design an effective manufacturing strategy for Our Own Corporation Limited that has recently entered the field of apparel and sportswear manufacturing. Following is the description of different MISS modules followed for the formulation of manufacturing strategy for the company. Module 1: What business are we in? The firm operated in highly competitive marketplace. The company deals in the business of manufacturing of apparel and sportswear that involves the manufacturing of wide range of products meant for the sporting activities and other casual use. The SWOT analysis of the firm revealed that the main strength of the firm is its sound financial position and human resource. The firm has hired high qualified professionals in all the departments that have years of experience in the field. The firm is established suing high capital. The firm does not have any market name and reputation so far that is the main weakness of the company. There are lot of opportunities in front of firm like availability of cross border trade options and use of advanced technology within the manufacturing process. The high market competition is major threat being faced by the company. 1. What Business are we in? Internal Analysis Strengths (S) Weaknesses (W) Availability of adequate Finance Lack of experience Human resource support Lack of market reputation and popularity External Analysis Opportunities (O) Threats (T) Availability of advanced technology Intense Market competition Use of cost effective measures Sound market share and reputation of competitors Module 2: Process and Infrastructure The company deals in the manufacturing of sportswear and apparel. There are different types of products included in the product line of the firm from sport shoes, T-shirts, track suits, trousers and caps. There are some well established firms operating in the industry like Nike, Puma etc that have years of experience in the field. The plant of the company has been established in China to take the benefit of low labour cost. The manufacturing control information function has managed through advanced information technology based system. The financial and human resources are managed by employing qualified and competent staff. The company is committed to produce high quality products to international market however; the market competition is the main problem area that hinders company to build a reputable market image. Module 3: Database for Analyzed and Refined information The research work and analysis of the situation conducted in the module 1 and 2 has allowed developing a systematic approach towards the attainment of the information required for this module. All the gathered information is integrated within the new database of information as illustrated below Module 4: Investigate Existing Practice at low cost At this stage there are number of appropriate management concepts employed for the investigation of the existing practice at low cost and some weaknesses in the manufacturing strategy are identified like lack of international supply chain management, weak logistics system, need of employing advanced technology etc. The check list provides the list of concepts used for the investigation (Appendix I) Module 5: Structure of integrate manufacture The physical structure of the factory has been designed by an architecture company that has technical knowledge regarding the special factory needs of a manufacturing company. The location is selected according to the environmental suitability. The plant and equipments are also arranged according to the process of manufacturing of the products. The production planning and control system concentrate on low inventory manufacturing to manage the flow of material and control the production process. The management focuses upon the interplay and interaction of the individuals. Up to date technology has been used like individual machines, flexible manufacturing system etc. Module 6: Rebuild and re-design the major sub-systems The major sub system rebuilt activities are conducted like the examination of machine and capacity, processes, tooling change over, loading of machine, capacity planning etc. The complete list of the activities conducted during this module is listed in the table (Appendix II). Module 7: Rules, guidelines for MISS implementation During this module, the rules and guidelines are developed for checking the implementation of MISS. The development and fulfilment of these rules and guidelines is assured through the check list (Appendix III). The development of these rules and guidelines assure the proper management of human resource as well as the manufacturing operations of the firm. Module 8: formulate and Implement final design and recommendation During the module, the company works for the formulation and implementation of the final designs of the manufacturing integrated systems strategy. The rules for communication purpose were written and the front cover of the manual is also developed that consists of company name and company logo. Module 9: Time span for MISS implementation The time span for the implementation of MISS is formulated using GANNT chart and PERT technique. The estimated time for the implementation of MISS is 55 weeks. The details of the activities and their time is estimated in the table (Appendix IV) Module 10: Monitoring and Feedback Mechanism This is the final module of the development of manufacturing strategy using the MISS framework. During this module the company introduces a monitoring and feedback mechanism in order to assure the continuous improvement of all the activities that have been conducted during the last nine modules. Appendix V illustrates the Monitoring and Feedback Mechanism after implementation of module 1-9. Recommendation and Conclusion The development of manufacturing strategy for Our Own Corporation using MISS framework allow focusing upon each and every aspect of the manufacturing process. It is recommended that the company should be well aware of the fact that it is operating in intensely competitive marketplace where some companies have already gained reputation and sound market share on the basis of years of experience in the field. OOC is supposed to adequately follow the marketing strategy developed using MISS framework because it could be able to compete with the existing firms on the basis of high quality and well manufactured products and it is only possible through the employment of an affective manufacturing strategy. In sum, the MISS framework is an effective marketing strategy development framework that consists of rules, guidelines and tips to assist the companies throughout the process of manufacturing of the products. It is also revealed that complete fulfilment of the rules and guidelines included in the MISS framework assure the commencement of manufacturing process with desired level of quality. The framework is useful for the development of manufacturing strategy of any new or existing company engaged in the manufacturing of any category of product. References Bin, W. (1994), “Manufacturing Systems Design and Analysis: Context and Techniques”, Production engineering, Springer, p468 pages Chase, R. B., and N. J. Aquilano (2000), Production and Operations Management: A Life Cycle Approach. Fifth Edition. Homewood, Ill.: Irwin. Chesbrough, Henry William (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, MA: Harvard Business School Press Chen, I.J., Small, M.H. (1994), "Implementing advanced manufacturing technology: an integrated planning model," OMEGA, Int. J. of Mgmt. Sci., Vol. 22, No. 1, 1994. Skinner, W. (1985) "Manufacturing – the formidable competitive weapon", Wiley, New York Galende, Jesús and Fuente, Juan Manuel de la (2003), “Internal factors determining a firms innovative behaviour, Research Policy, Volume 32, Issue 5, May 2003, Pages 715-736 Grant, R.M., Krishnan, R., Shani, A.B., Baer, R., Grant, R. (1991), "Appropriate manufacturing technology: A strategic approach," Sloan Management Review, Vol. 33, No. 1, fall 1991 Read More