THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing

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THE GLOBAL PLANT FLOORPlanetary Ecosystems for
Designing Making Things

• Presented By
• LaPortia James
• Jonathan Cullum
• Kelly Powell

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FAB LAB

• http//www.principalvoices.com/2007/technology.inn
  ovation/video/neil.gershenfeld/

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Peer Production of Physical Things

• Adoption of Wikinomics openness, peering,
  sharing, and acting global
• End of multinational production
• Lower costs
• Receding trade barriers allow for goods,
  knowledge, capital, and people to circulate
  freely in the market

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Out with the OLD, in with the NEW!

• Out with
• National silos
• Insufficient knowledge transfer
• In with
• Global resources and capabilities
• Human capital across borders and organizational
  boundaries

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• The emerging globally integrated enterprise
  fashions its strategy, its management, and its
  operations in pursuit of a new goal the
  integration of production and value delivery
  worldwide.
• Sam Palmisano, IBM CEO and Chair

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Managing the Ecosystem
Expertise
Capabilities
Operations
Innovationis more about orchestrating and
coordinating good ideas.
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Part II

• The Modular Motorcycle Gang

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Chinas Motorcycle Industry

• Chinas motorcycle industry illustrates peer
  collaboration and production at its finest
• Their collaboration has led to competitive
  advantages by means of efficiency and quality
  control
• Motor cycle production has tripled since the mid
  1990s in China

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History

• Yin Mingshan set up a motorcycle repair shop with
  14 employees in Chongqing
• That was over 14 years ago. Today, his company,
  Lifan, has 9,000 employees
• Lifan produces over 700,000 motorcycles a year in
  112 countries
• http//www.lifanmc.co.nz/

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Future of Lifan

• Lifan plans to double its workforce to 20,000 in
  five years
• Lifan wants to be a worldwide brand
• Hopes to be instrumental in building up Chinas
  automobile industry
• Makes mid-size cars in Asia, Middle East, and
  Caribbean
• The Lifan 520 has leather seats, air bags, a
  spacious trunk, and a DVD system for 9,700

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Peer Production

• Current thinking Peer production can only be
  utilized to make information-based goods
  (composed of bits, inexpensive to make, and
  easily subdivided).
• More people are beginning to believe that peer
  production can be applied to the production of
  actual products

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Modular

• If products are made to be modular then, like
  Wikipedia, producers should be able to add to and
  modify product components and designs
• Modular means consisting of interchangeable parts
  that can be swapped without hindering the
  performance of the product

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Collaboration

• Chinese motorcycle producers collaborate on
  manufacturing and designs (hundreds of companies)
• In less than ten years, Honda, Suzuki, and Yamaha
  have lost 40 of their market to Chinese firms
• This seems to be proof that peer collaboration
  and production has been a successful approach for
  the Chinese Motorcycle industry

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Other Reasons for Success in China

• Chinas transition from communist central
  planning to a market economy
• Long history of making Japanese products
• Some argue that there is no real innovation in
  China they knocked off the Japanese's design
• China has made reverse engineering more
  collaborative and organized

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Chinas Approach

• Loosely defined specifications to amend and
  improve performance (this is usually achieved
  through collaboration with other suppliers)
• Exchange of knowledge and skills among firms
• Face-to-face interaction encourages trust, and
  problem solving
• Increased specialization
• This is referred to localized modularization

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Risks to this Approach

• Gap in supply and demand caused by a lack of
  coordination between suppliers and producers when
  gauging the market
• Mismatched Parts- This can arise from a lack of
  integration

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The Lego Block Airplane
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Boeings Approach

• Planes are composed of Lego parts made from
  many different manufacturers
• Economic factors, including 9/11, caused Boeing
  to have to change the way it does business
• New approach, mass collaboration, to control
  costs and get new planes to market more quickly

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Boeing Continued

• Participants design and build the aircraft in
  ways similar to those who built the Linux
  operating system
• From this process came the 787 Dreamliner,
  IMPORTANT FOR THE COMPANYS SUCCESS
• Built among hundreds of suppliers in six
  different countries
• Boeings new model treats suppliers as partners
  and peers, and their involvement in the process
  begins much earlier
• Future passengers were also involved in the
  design process
• The final assembly process cut from 13-17 days to
  as few as three days

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Collaboration System

• Boeing created a collaboration system called
  Global Collaborative Environment
• Allows for collaboration in respect to design and
  product life-cycle management
• Engineer drawings and other important data can be
  accessed, reviewed, and revised using the system
  by all partners all over the world.
• There is also a sophisticated virtual design
  program, so suppliers can see how their parts
  will act together in real situations (at this
  stage benefits and problems can be seen)

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Risks

• Some worry that Boeings sharing of intellectual
  knowledge will cause them to lose its engineering
  edge
• Leaky knowledge
• Micromanage

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BMW

• German carmaker with a long-term reputation for
  quality car engineering.
• Large international company that has sales to
  people in many countries around the world.

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BMW

• BMW undergoing a shift from an emphasis on
  mechanical engineering to perfecting the driving
  experience.
• BMW focusing on more collaboration with their
  suppliers, and a shift to their suppliers doing
  more RD, design building, and assembly of their
  cars.

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How BMW harnesses the Global plant floor

• BMW estimates that 90 of its new innovations
  will come in the fields of electronics and
  software.
• Suppliers already develop and build 65 of new
  vehicles.
• Many of BMWs key innovations were from suppliers
• Opportunities to explore develop more customer
  co-creation using the internet

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BMW Car Models

• 528xi Sedan 335i Sedan
  M3 Sedan
• 6 Series Convertible X5 xDrive48
  Z4 Roadster

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BMW Website

• http//www.bmw.com/
• http//www.bmwusa.com/Default.aspx
• BMW Efficient Dynamics
• More driving pleasure
• Less emissions
• Hybrids/Clean energy

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BMW Efficient Technologies

• The engines
• Auto Start Stop function
• Brake Energy Regeneration
• Electric Power Steering
• Air vent control
• Gear shift indicator
• Tyres with reduced rolling resistance

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Summary

• 7 Lessons on how to harness the Global Plant
  floor
• 1- Focus on the critical value drivers
• 2- Add value through orchestration
• 3- Instill rapid, iterative design processes
• 4- Harness modular architectures
• 5- Create a transparent egalitarian ecosystem
• 6- Share the costs and risks
• 7- Keep a keen futures watch

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The End

• Jiangsu 125cc Motorcycle
  BMW 750Li
• Boeing 747