International Technology. Transfer Management. Industrial Engineering. Dr. rer.
nat. Dieter Lubkoll. Wintersemester 2003/2004. Lecture Notes by Phillip Kern ...
International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
Industrial Engineering 1
LITERATURE ................................................................................................................. 2
2
CASE STUDY 1................................................................................................................ 2
3
DEFINITIONS ................................................................................................................. 3 3.1 3.2 3.3
INDUSTRIAL ORGANIZATION ....................................................................................... 3 SYSTEMATIC OF INDUSTRIAL ENGINEERING ................................................................ 4 FUNCTIONS OF IE IN ENTERPRISES .............................................................................. 5
4
DOCUMENTATION OF A PRODUCT........................................................................ 5
5
ROUTING PLAN / MASTER ROUTE SHEET (FERTIGUNGSPLAN) ................... 6 5.1
6
BUILDING OF ROUTING ................................................................................................. 7
CASE STUDY 2................................................................................................................ 9 6.1 6.2 6.3 6.4 6.5
7
CREATE A TEAM CHART FOR THIS TEAM .................................................................... 10 WHICH PRODUCT DOCUMENTATIONS ARE NEEDED FOR THE TRANSFER? ................... 11 DEFINE THE POTENTIAL STEPS FOR THE TRANSFER .................................................... 11 DEFINE A MILESTONE PLAN FOR THE TRANSFER ........................................................ 11 TRANSFER OF SPECIAL EQUIPMENT AND FIXTURES TO SIGNA .................................... 11
METHODS TO FIND OUT STANDARD TIMES ..................................................... 12 7.1
8
STANDARD COST CALCULATION
................................................................................ 13
WORK ORGANIZATION............................................................................................ 14 8.1 8.2
DIRECT DEPARTMENTS ............................................................................................... 14 INDIRECT DEPARTMENTS ........................................................................................... 23
9
MATERIAL MANAGEMENT..................................................................................... 24
10
ORDER PROCESSING AND PRODUCTION PLANNING & CONTROL (PPC)26 10.1
TASKS, OBJECTIVES AND DEFINITION OF PPC........................................................... 26
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
1 Literature -
Manufacturing Handbook of Best Practices (Jack B. Revelle) Arbeitswissenschaft (H. Luczak) The Memory Jogger
2 Case study 1 Due Dilligence “Behrendson AB(GmbH)”/Sweden goal: • • •
check of potential acquisition sign confidentiality agreement find recommendation to Senor Management (Æ YES or NO)
Create a team that will try to achieve the goals. team functions: - finance - marketing - industrial engineering - sales - R&D topics, the industrial engineer has to deal with: - organization - new product development processes (NPD) - skills / training methods (of personal) - wages / incentives (Prämien) - lead times - personel (Shifts, employees, White-Collar-Workers[WCW], BCW) - maintenance - environment - safety standards -
goals (production/department) stock / warehouse suppliers production lines / products work method(s) quality / corrective actions IT equipment / tools / automatication standard costs outsourced productions ratios (Kennzahlen )/ productivity order processing technical planning
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
3 Definitions 3.1 Industrial Organization -
describes a system of permanent regulations and input/output relations determine the work of the operative and ensure function-fulfilment (Wiendall/Spur)
Industrial Organization contains 2 items: • structure organization • work process organization
3.1.1 Structure organization Arrangement and organizational structuring of enterprises/operations according to principles of division of labour and organizational units (work places, divisions) as well as their cooperation/communication and coordination processes (Birker) monolithic line organization
specialization of functional areas
P
P
staff line organization Management
Sales
Marketing
R&D
Operations
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
Matrix Organization Management
Operations
Product Manager A
Production
Product Manager A
Production
A
B
R&D
Sales
Marketing
Admin
A
A
A
A
B
B
B
B
3.1.2 Process organization Special and temporal arrangements of work functions along the supply and production chain within the operational structure. The process organization regulates the activities for execution of tasks (Birkel)
3.2 Systematic of Industrial Engineering six levels of analysis: 1st 2nd 3rd 4th 5th 6th
level: level: level: level: level: level:
Enterprise/Company plant manufacturing area / planning area work team work place job/function
Macro level Meso level
Micro level
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
15.10.2003
3.3 Functions of IE in Enterprises
layout
Production control
Production facilities
Production planning
Quality assurance
IE
purchase manufacturing
Internal logisics Industrial medicine
R&D
Industrial hyginie and safety
4 Documentation of a Product product documentation
technical drawing
bill of material (BOM)
numbering system
(Stückliste)
-
-
types: • explosion drawing • single part drawing • component drawing CAD program (Autocad X / Proengineering) intellectual property of the company Æ important to save (e.g. microfiches)
list of all the parts of a product types: • one level BOM • structureBOM • summarized BOM • variant BOM
-
-
identifying article number for every special product e.g. SAP/R3
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
5 Routing plan / master route sheet (Fertigungsplan) -
order independent documentation of the manufacturing process works for one level
routing
types routing for: • final assembly • parts/components • repair
structure written as: full list or short list (abbreviations)
content top data : • Art.-Nr. • description of part/product • Nr. editions (versions) • lot size material data: • Mat.-Nr. • description of material • units (kg,m, …) • quantity production data • process data • working place • standard times • production facilities information
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
5.1 building of routing IE: step1: “make or buy” – decision (e.g. “in house production” or “outsourcing” or “purchase supplier”) step2: check • • • • • •
drawings BOM Article-No. equipment working place quality (how to test)
step3: think about • lot sizes (5 or 50000 units/year) • final production date (how long it will take to build up the production line?) • service life of product step4: think about • work study • production technology (machines, programming of machines) • organization step5: planning of similarities (maybe you can use similar technologies from other products) define processes planning of production equipment • tools Å data from R&D (especially plastic, rubber need long time) • fixtures (fest angebrachtes Zubehörteil) • test equipment step6: cycle time definition • standard times
estimation(e.g. based on similarities) ask the worker Methods time measurement(MTM) (standard calculation)
step7: planning of logistics step8: need of NC-programs (for numeric controlled machines)
⇓ Routing plan ___________________________________________________________________ 7/35
International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
standard time Time required by a average skilled operation, working at normal pace to perform a special task using a prescribed method allowing time for personal needs, fatigue(Ermüdung) and delay.
data for line balancing
Calculation (standard costs, Herstellungskosten(HK))
Standard time
data for wage payment
data for line simulation data for employment evaluation data for staffing
working hours begin and end of work without any break Æ 8:00 a.m. – 15:30 p.m. 1. organization (traditional working hours): • 1 Shift • 2 Shifts • 3 Shifts 2. flexible working hours • part time • job sharing • yearly working hours • capacity related working hours (work 10h/day if there’re orders, stay home if not) German labour law working hours: breaks:
9h)
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
29.10.2003
6 Case study 2 Transfer of production of printed circuit boards to Signa /Cz Situation: - Martin GmbH, Berlin wants to outsource the production and test of printed circuit boards (PCB) for the product program of Martin GmbH to Signa. - Martin has a program of 40 different PCB`s with yearly volume from 50 units/ year to 10 000 units/year. - The make or buy-analysis was done and the management decision was to outsource the production of PCB`s to Signa. Signa: - Specialized company for the production of PCB`s and test of PCB`s ATEX approved and certified ISO 9001:2000 - State of the art insertion and test machines (SMD devices etc) - 3 shifts operation - Spray coating equipment for PCB`s - 50 employees, engineering department for PCB layouts - CAD –system in use - Test adapters and test programs made by Signa Tasks: - The operations manager of the Martin GmbH has installed a team to manage the transfer. - Team members are engineers of R&D, Industrial Engineering, Production, Cost Accounting, Production Control and Purchase Department 1. 2. 3. 4. 5.
Create a team chart for this team Which product documentations are needed for the transfer? Define the potential steps for the transfer Define a milestone plan for the transfer Transfer of special equipment and fixtures to Signa
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
6.1 Create a team chart for this team Transfer of production of printed circuit boards to SIGNA Mission Statement
Team Inputs
Team Goals & Outputs
Team Members
Group Responsibilities
Timing
Transfer of production technology and necessary information of PCB-production to Signa, Czech Rep. enabling them to produce at same standards and output volume. Ensuring the right amount of PCB’s in the right time, right location and right quality. Information of present production 1. Risk Management: Plan “B” 2. Analysis of PCB portfolio (40 types, ABC-distribution) 3. Information politics 4. Basic data (documentation) 5. capacity planning for the next 6 months 6. Check of SW-compatibility 7. Copy of Test-SW 8. Direct contact with sufficient language skills (interpreter necessary?) 9. Interfaces of processes 10. Decision: Who is supplier for components of PCB’s? (Supply Chain Management) 11. Logistics: Transportation, delay due to customs, etc. 12. Outgoing or incoming quality tests? Project goals • Project finish (production running 100% of present volume and quality) end of April 2004 • Meet target costs Output: • Documentation • Project plan • Validation of processes Team leader Team sponsor • John Beschnidt • Andreas Reichert • Philipp Hartmann • Heiko Boelter • Haifeng Li • Russell Sahusilawane • Phillip Kern • Florian Hieber Successful transfer within cost and time limit Guarantee the communication between teams Guarantee the sufficient supply of PCB’s during transfer time and afterwards 1. 2. 3. 4. 5. 6. 7.
Visit Signa plant Documentation of processes (BOM, Routing Plan, test plans, etc.) Define contacts Feasibility study for emergency plan Parallel production during transfer Extended stock production (300%) Pilot run
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
6.2 Which product documentations are needed for the transfer? Product documentation necessary for transfer Product information • Drawings • BOM • Routing Plans without minutes • Test plans • Test adapters • Special condition instruction (e.g. coating) • Samples
Process information • Agreed project schedule • Agreed production schedule (transfer and rolling forecast) • Supplier specifications (incl. names and prices) • Electric circuit plans • Quality history • R&D experience
6.3 Define the potential steps for the transfer Define the potential steps for the transfer (incl. milestones) 1. Analysis of portfolio (2 weeks) Æ ABC-Matrix 2. Collect documentation and translation (6 – 8 weeks) Æ Phase 1: Drawing, BOM, Routing, test sheets 3. Agree on schedules 4. Transfer of A-Runner PCB
6.4 Define a milestone plan for the transfer s.a. (6.3)
6.5 Transfer of special equipment and fixtures to Signa Transfer of special equipment and fixtures to Signa 1. know-how-transfer 2. disassembly of equipment 3. transportation 4. setup of equipment 5. test of equipment 6. know-how-transfer
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
12.11.2003
7 methods to find out standard times actual data (from experience) • time measurements • ask the worker • expert systems • self documentation of time
estimated data • MTM (Methods time measurement) • WF (Work Factor) • Simulation
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
7.1 standard cost calculation based on 100 units Labor burden: • heating • lighting • depreciations (Abschreibungen) • vacation • social cost / pension • rent/m² • cleaning • maintenance • production manager (partly) • Quality managers • Industrial Engineer
€ material burden (Materialgemeinkosten)
material cost variable cost labor burden
material cost
(Fertigungsgemeinkosten)
labor cost (wages…)
labor cost (wages…)
material burden: • warehouse cost • incoming inspection • shipping cost
standard costs (Normally 10-15%)
€
list price = standard cost * 3,x
list price
(Frank-Lynn-factor)
discount Sales price (Price for customer)
profit margin Sales/Marketing
R&D
standard cost
intercompany pricing: standard cost + x%
product cost (for company)
Admin
(for selling to a sister company)
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
19.11.2003
8 work organization 8.1 direct departments -
direct working on the product (assembly, testing, developing…) normally blue collar workers
8.1.1 Measures in Work Structuring: Job Enlargement
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.2 Measures in Work Structuring: Job Enrichment
Problem: not all workers want to do that, they are insecure 8.1.3 Measures in Work Structuring: Job Rotation
Advantage: more flexibility (in case of vacation/illness more workers can do the same work) Disadvantage: more qualification necessary ___________________________________________________________________ 15/35
International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.4 Groups and Teams
8.1.5 Quality Circles
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.6 learning room
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.7 workshop circle
8.1.8 example from Packing Industry
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.9 production cell
8.1.10 lean production
example for lean production see also 8.1.8 example from Packing Industry
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.11 Organization of Team work
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.1.12 Task: Introduce a work cell organization in production department 1. information of shop council / Wirtschaftsausschuß 2. Kick-Off meeting (start of the project) • all involved people (workers, supervisors, management, ProductionControl, QualityControl, Shop Council, (+ Consultant)) • project team ( ¾ team leader ¾ industrial engineer ¾ production control ¾ finance ¾ supervisor ¾ (shop council member) 3. next steps • groups • goals • functional organization Æ segmentation Æ group work
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
8.2 indirect departments -
not directly working on the product (e.g. industrial engineer)
Global steering teams: head and face protection -
sales market R&D production
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
2004-01-14
9 material management supply chain: material/goods/products flow
supplier
production
distribution
production control
rolling forecast
sales
customer
information flow
rolling forecast: based on: - sales statistics - market development - orders you already have normally done by sales department 2004 Jan product A product B product C product D
Feb 1000 500
March 1000 500 900
April 800 400 800 800
…
2005 Jan
Feb
… 700 900
you need this information to order from the supplier especially with respect to long delivery times
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
forecast SAP R/2 inventory
MRP
purchase orders
production orders production
warehouse
shipping dep.
supplier
incoming inspection certificated supplier
warehouse
customer
additional:
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
10 Order processing and Production Planning & Control (PPC) 10.1 Tasks, Objectives and Definition of PPC 10.1.1 Order Processing, Production Planning & Control (PPC) and Enterprise Resource Planning
10.1.2 Production, Planning & Control (PPC) – Tasks and Objektives
10.1.3 ___________________________________________________________________ 26/35
International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
PPC – Tools, Models Y-Integration-Model:
The Aachen Model of PPC:
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
Task Reference View of the Aachen Model of PPC:
Planning Levels of the Aachen Model:
10.1.4
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
Production Program Planning
10.1.5 Forecast Methods for Sales Planning
10.1.6
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
ABC-Analysis
10.1.7 Order Point Method and Order Rhythm Method
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
10.1.8 optimal Lot sizes and order quantities
10.1.9 Scheduling
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
If real delivery date is later Æ penalty think of bottle necks in production, that can be optimized 10.1.10 methods of lead time reduction
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
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International Technology Transfer Management Wintersemester 2003/2004
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
10.1.11 data management
10.1.12
Push Principle –and Pull Principle
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International Technology Transfer Management Wintersemester 2003/2004
10.1.13
KANBAN
10.1.14
Summary and Outlook
Industrial Engineering Dr. rer. nat. Dieter Lubkoll Lecture Notes by Phillip Kern
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