the factory of the future

8/17/2019 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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Bina 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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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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Bina Nusantara


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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


• Targets• Initiatives

Customer

Perspective

• Objectives


• Targets

• Initiatives

Internal Process

Perspective

• Objectives


• 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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the factory of the future

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