KM

1
KM  Other Information-Intensive Management
Areas

• Yale BraunsteinJune 2004

2
Agenda

• Just-in-Time Manufacturing
• Out-Sourcing
• Modular Manufacturing
• Flexible Manufacturing

I. Agenda 1. J-I-T Manufacturing 2. Out-Sourcing
3. Modular Manuf. 4.. Flexible Manuf.
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Just-in-Time Manufacturing

• Logistics and manufacturing strategy
• Customer satisfaction (right time/quantity/locatio
  n)
• New organization of processes in material and
  information services
• Cost savings, reduced inventories
• - Value adding process arranged with customer
  needs

I. Agenda 1. J-I-T Manufacturing 2.
Out-Sourcing 3. Modular Manuf. 4.. Flexible Manuf.
Source Prof. Horst Wildemann, TUM
4
The Toyota Production System

• a technology of comprehensive production
  management
• -continuous flow of products in factories in
  order to flexibly adapt to demand changes

I. Agenda 1. J-I-T Manufacturing 2.
Out-Sourcing 3. Modular Manuf. 4.. Flexible Manuf.
-quantity control, quality assurance ,
respect-for- humanity, small warehouse -concept
s just-in-time, autonamation, flexible work
force
Source R.Balakrishnan
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Out-Sourcing

• - outsourcing offers strategic advantages
• - greater flexibility
• - concentrate on absolute core competencies
• - offload the peripheral activities
• risks
• escalating costs, diminishing service levels,
  loss of expertise
• e.g. IT Out-Sourcing

I. Agenda 1. J-I-T Manufacturing 2. Out-Sourcing
3. Modular Manuf. 4.. Flexible Manuf.
Sources Michelle Delio, Benoit A. Aubert et al.
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Modular Manufacturing
Product

I. Agenda 1. J-I-T Manufacturing 2.
Out-Sourcing 3. Modular Manuf. 4.. Flexible Manuf.
Modules
Standard Interfaces
Source Bürschgens
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Modular Manufacturing

• shift production of components and assembly lines
  to sub-contractor
• different products contain the same modules
• cost reduction
• shift RD to sub-contractors (knowledge shared)
• e.g. cars, computers

I. Agenda 1. J-I-T Manufacturing 2. Out-Sourcing
3. Modular Manuf. 4.. Flexible Manuf.
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Volkswagen

• Golf consists of 31 main modules and 54
  submodules
• continuous flow of products in factories in order
  to flexibly adapt to demand changes

I. Agenda 1. J-I-T Manufacturing 2. Out-Sourcing
3. Modular Manuf. 4.. Flexible Manuf.

• suppliers are located around the factory
• deliver parts (doors, cockpits, gearboxes)
  directly to the production line
• Problems
• Can there be too much modularization?
• Role of product differentiation

Source Volkswagen
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Flexible Manufacturing

• fast configuration of products built by modules
• modern assembly lines
• cost reduction
• satisfy customer needs
• better position in the market

I. Agenda 1. J-I-T Manufacturing 2.
Out-Sourcing 3. Modular Manuf. 4.. Flexible Manuf.