the factory of the future
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The factory of the future
By Fransisca Dini Ariyanti,
Faculty member
Binus University
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Bina Nusantara
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 URRENT 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 company’s totalturnover. 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 productlife cycle, the first half
of the year, the sales
trend of some
product groups could
be predicted based
on past results, but
not possible forsecond half year.
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Bina Nusantara
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Factory tranformability
• an enormous adaptation effort on the partof the company was required (see Figure
3).
• The overall objective is to raise acompany’s or factory’s transformability,
the new determinant of corporate market
success.• Transformability is the ability to adjust
rapidly to increased turbulence and
recognize changing indicators earlyBina Nusantara
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TRANSFORMABLE STRUCTURES TO
MASTER INCREASING TURBULENCE
• Company’s competitiveness can beenhanced 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 theBina Nusantara
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CORPORATE NETWORK
CAPABILITY
• Corporate network capability describes the capacity of anenterprise 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 network’s 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 anautomobile supplier with high
network capability. The
company’s focus is vehicle air
conditioning and motor cooling.
Its customers include all the
large European car
manufacturers. In order to offerits 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 thecooperation 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
Bina Nusantara :
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Bina Nusantara
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Case study
• A manufacturer of packaging machinery changes in theorganizational 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 FutureBina Nusantara
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Process Management through
Process Modeling Evaluation
and Monitoring
• Pemetaan dan evaluasi proses managemen menggunakan pendekatan
terpadu dan holistik, secara terus menerus , disesuaikan dengan
kecepatan perubahan. Tahap-tahapnya:
1. Pemodelan proses , untuk memetakan aliran proses sesuai
tingkat/spesifikasi, proses dapat digambarkan secara lebih rinci atasbeberapa tingkatan. Setiap modul proses dapat dilengkapi dengan fitur-fitur
seperti frekuensi, durasi, dan kondisi tertentu, SDm dan dokumentasi untuk
memungkinkan evaluasi alur kerja
2. 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
3. Evaluasi dan optimalisasi proses didasarkan pada hasil kinerja : kualitas,
batas waktu, jumlah dan harga, dan biaya maksimal.
4. Pada tahap monitoring, perlu untuk mengumpulkan up-to-date angka
proses. Berdasarkan angka-angka kunci, di analisa variasi biayanya.Bina Nusantara
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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, start-
up 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 dapat mempertahankan dan mengadaptasi model sendiri.Bina Nusantara
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Bina Nusantara
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Participative Planning in the Factory
of the Future
• Perencanaan partisipatif di lakukan karena kerjasama sangatmeningkatkan efisiensi dalam mencari solusi untuk masalah yang
kompleks
• perencanaan pabrik interaktif menggunakan unsur-unsur virtual
dalam model komputer
• Metode perencanaan interaktif ini perlu waktu perencanaansingkat, 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 akuntansidikombinasikan dengan data proses lain
• Balanced scorecard juga berfungsi
sebagai sistem peringatan dini untuksebuah perusahaan sehingga dapat aktif
merespon perubahan pasar.
• Balanced scorecard membantuBina Nusantara
Th B l d S d (BSC) "O f th t i t t
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1992 2009
Based on presentation of Balanced Scorecard Collaborative
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
1996 2000
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:
Business Value of IT — Non-financial Measurements
“The Balanced Scorecard” is translated into 18 languages
The Balanced Scorecard (BSC) - "One of the most important
management practices of the past 75 years" HBR
Measurement
and Reporting
Alignment and
Communication
Enterprise-wide
Strategic
Management
Informed Risk Decisions
Wh t i t b “B l d”
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Financial
Perspective
• Objectives
• Key Performance Indicators
• Targets
• Initiatives
Strategy
Learning & GrowthPerspective
• Objectives
• Key Performance Indicators
• Targets• Initiatives
Customer
Perspective
• Objectives
• Key Performance Indicators
• Targets
• Initiatives
Internal Process
Perspective
• Objectives
• Key Performance Indicators
• Targets• Initiatives
Kaplan and Norton, 1996
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
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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
E l f th B i B ildi Bl k f th St t
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Internal Process Perspective
Financial Perspective
Learning & Growth Perspective
Customer Perspective
Return onInvestment
Price Quality Time Function Image Relatio-ship
Value Proposition
Sources of Growth Sources of Productivity
Technology
Infrastructure
Climate for
Action+ +
“Build the
Brand” “Make the
Sale” “Deliver the
Product” “Service
Exceptionally”
RevenueStrategy
ProductivityStrategy
1. The economic model of
key levers driving financial
performance
2. The value proposition oftarget customers
3. The value chain of corebusiness processes
4. The critical enablers ofperformance improvement,change and learning
Staff
Competencies
Source: Presentation of Balanced Scorecard Collaborative
Example of the Basic Building Blocks of the Strategy
and displaying the strategy’s cause-effect hypotheses
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CONCLUSION
• The transformability of future manufacturing structures will become an
important feature, enabling quick and proactive response to changingmarket 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
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