business process reengineering office furniture industry · • the furniture industry is...
TRANSCRIPT
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Business Process ReengineeringBusiness Process Reengineering
Office Furniture IndustryOffice Furniture Industry
Team 4
Alejandra
Valeria
Kevin
Karen
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IntroductionIntroduction
• The Furniture Industry is classified as one of the most important
manufacturing industries in the world.
• Modular furniture industries are normally small or medium size.
• Shorten lead times and accurate deliver time are the most important
things to achieve competitive advantage.
• Because of the changing economic environment, these companies
have a motivation to adopt BPR for reengineering their original process • Cost reduction
• Better performance
• Customer satisfaction
• Flexibility
• Innovation
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Office Furniture Industry ChallengesOffice Furniture Industry Challenges
• Furniture manufacturers share many common characteristics
• Challenges
• Mass customization
• Reduced lead times
• Sales automation
• Access to business information
• Technology integration
•Highly competitive•Price and delivery critical•Demand driven – flexiblemanufacturing
•Variety of products
•Variety of finishes ⇒ highly customized
•Labor intensive•Large-scale automation difficult to achieve
•Low stock holding•Long lead times
•Highly competitive•Price and delivery critical•Demand driven – flexiblemanufacturing
•Variety of products
•Variety of finishes ⇒ highly customized
•Labor intensive•Large-scale automation difficult to achieve
•Low stock holding•Long lead times
• Solutions• Implementing ERP system
• Modifying the manufacturing process to create high flexibility
• Moving towards mass customization approach
• Providing a customized service
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Key elements to achieve Key elements to achieve
competitive advantagecompetitive advantage
• Improve designing process ⇒ innovative methods such as digital design
• Reduce complexity of product designs ⇒reduce product offering without eliminating different options such as colors and configurations to achieve mass customization
• Cross-functional integration of different areas of the company ⇒ ERP system
• Implementation of Just-in-time in the logistics process ⇒ decrease inventory and improve productivity
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Case StudyCase Study
• Research Objectives: Try to improve existed problems, simplify manufacturing process, reengineer original business process and shorten the lead time.
• Sample Company: Herman Miller SQ&A
• Subsidiary specialized on Office Furniture
• Core competences: Innovation and customer service
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As Is Design Process
• Mockups , 2D views • Old catalogue & show rooms
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Improvement of designing process & Improvement of designing process &
Reduction of complexityReduction of complexity
• Design software 3D view
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Improvement of designing process & Improvement of designing process &
Reduction of complexityReduction of complexity• A customer applies for several kinds of designs
which have been well arranged and choreographed.
• More standardized designs with different options (color & configuration)
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As is business modelAs is business model
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As Is Order As Is Order
Fulfillment Fulfillment
ProcessProcess
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Information ModelInformation Model
- Invoice code
Order Information
Invoice
- Name
- Department
- Function
- Address
- Work
Schedule
Human
Resource
Product Style
Material Requirement
Inventory Information
Machine Requirement
Human Resource
Manufacturing due date
Manufacturing
Information- Name- Quantity
- Price
- Color
- Style
Product
Style
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Organization ModelOrganization Model
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As Is Simulation ParametersAs Is Simulation Parameters
• Initial quantity of objects
(Customer’s request)=
10
• Simulation Time = 2
months
Activity Average Time
Selecting furniture 0.6
Designing 1
Designing Verification 1
Checking Inventory Status 2
Checking Manufacturing Capacity
1
Checking delivery Schedule 1
Verifying Costs 1
Offer confirmation 1
Order Placement 0.25
Manufacturing 7.5
Delivery and Installation 1
Total time (Days) 17.35
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As Is Behavior As Is Behavior
ModelModel
-- Order fulfillment Order fulfillment
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As Is Result AnalysisAs Is Result Analysis
Activity Flowing objects
Selecting furniture 10
Designing 10
Designing Verification 10
Checking Inventory
Status
7
Checking
Manufacturing Capacity
7
Checking delivery
Schedule
6
Verifying Costs 5
Offer confirmation 4
Order Placement 3
Manufacturing 2
Delivery and
Installation
2
Total time (Days) 81.75
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As Is Result AnalysisAs Is Result Analysis
Activity Time * # Objects (t)
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As Is Result AnalysisAs Is Result Analysis
1527.5Manufacturing
1472Checking Inventory Status
10101Design Verification
10101Designing
Total# ObjectsAverage timeMost time consuming Activities
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AsAs--Is Manufacturing ProcessIs Manufacturing Process
• Main products: bookcases, cabinets,
desks, chairs, tables.
• The flow present in the modular
furniture industries is lineal.
• The manufacturing plant works with
assembly lines, supplied with semi-
finished products and produce
finished modules.
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ModularityModularity
• Common components are
used in the design of a
product
• The modules can be
combined in different ways.
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AsAs--Is Manufacturing ProcessIs Manufacturing Process
Yes
No
Production schedules based
on product categories (i.e.
chairs, desks) that were
directly to warehouses.
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As Is Simulation Parameters As Is Simulation Parameters --
ManufacturingManufacturing
Activity Average Time
Verifying manufacturing order 0.5
Checking availability of materials 1
Ordering materials to suppliers 3
Subassembly 1 0.6
Subassembly 2 0.6
Subassembly 3 0.6
Transportation of materials from warehouse
0.3
Final assembly 0.9
TOTAL TIME (days) 7.5
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AsAs--Is Behavior Model Is Behavior Model -- Manufacturing Manufacturing
Process Process
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To be business modelTo be business model
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ToTo--Be Manufacturing ProcessBe Manufacturing Process
ImprovementsImprovements
• Mass customization approach• The means for achieving customization at mass production costs
• Flexible computer-aided manufacturing systems
• Order-center approach• Just in Time and
• Kanban systems
Modularity(mass
productioncosts)
+ Cosmetic
Customization
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Improvements in MImprovements in Manufacturing Processanufacturing Process
Combining Kanban systems and
Just In Time production, one
complete order can be built at a
time.
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ToTo--Be Manufacturing ProcessBe Manufacturing Process
Reconfiguration of
Subassembly stages, to
produce one order at a time
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To Be Simulation Parameters To Be Simulation Parameters --
ManufacturingManufacturing
Activity Average Time
Verifying manufacturing order 0.2
Checking availability of materials 0.2
Subassembly 1 0.6
Subassembly 2 0.6
Subassembly 3 0.6
Final assembly 0.9
TOTAL TIME (days) 3.1
From 7.5 to 3.1 days
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ToTo--Be Manufacturing ProcessBe Manufacturing Process
JIT and Kanban
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To Be Order Fulfillment ProcessTo Be Order Fulfillment Process
ERP systemERP system
y
y
y
Job material requirements
and availability
Job status and material
requirements
Inventory availability and
status
Assembly capacity
Job sequencing
Shipping schedules and
installation
JIT material’s flow
FINANCE AND
ACCOUNTING
SALES AND
DISTRIBUTION
MATERIALS
MANAGEMENT
ERP SYSTEM
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To Be Order Fulfillment ProcessTo Be Order Fulfillment Process
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To Be Behavior Model To Be Behavior Model –– Order Fulfillment Order Fulfillment
processprocess
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To Be Simulation ParametersTo Be Simulation Parameters
6.85TOTAL
1Delivery and Installation
3.1Manufacturing0.25Placing order2.0Confirming offer
0.25Verifying order (ERP)
0.25Designing processTime (days)Time (days)Time (days)Time (days)ActivityActivityActivityActivity
TOTOTOTO----BE ModelBE ModelBE ModelBE Model• Initial quantity of objects (Customer’s request)=
10
• Simulation Time = 2
months
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To Be Simulation Parameters To Be Simulation Parameters
(comparison)
6.85TOTAL1Delivery and Installation
3.1Manufacturing0.25Placing order2.0Confirming offer
0.25Verifying order (ERP)0.25Designing process
Time (days)Time (days)Time (days)Time (days)ActivityActivityActivityActivityTOTOTOTO----BE ModelBE ModelBE ModelBE Model
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To Be Result AnalysisTo Be Result Analysis
Activity Flowing objects
Designing Process 10
Verifying offer (ERP) 10
Confirming offer 10
Placing order 8
Manufacturing 8
Delivering order 8
Total 54
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To Be Result AnalysisTo Be Result Analysis
Activity Time * # Objects (t)
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ConclusionsConclusions
• A process reengineering is a “must-be-done” task for every company that wants to be competitive.
• Tools such as INCOME 4 can be useful to identify bottlenecks to work on.
• A BPR process can definitely cut down costs and improve customer satisfaction, as shown by the results of our project. (From 17.35 days to fulfill and order to 6.85 days).
• The implementation of an ERP system is critical to improve the flow of information and accelerate the movement of the whole business process.
• Modular manufacturing and JIT systems, combined can be a successful tool to reduce production times, eliminate unnecessary inventories and reach the benefits of a mass customization.