Production System Design

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Contents Preface and acknowledgements Chapter 1 Introduction 1. Organisa 1.1.1. Population ecology and in organisation theory 1.1.2, Some further notions onthe fit concept when applied t smminism strategie choice debate 2 Fit and misfit in practice. an example from the peat / 1.2.1. Fordish mass 1.22. The effeets of fit and misfit, its development and the tole of dominant designs 1.3. Theory on designing consisient production organisations 1.3.1. Holistic theories 13.2. Partial theories and methods Isthe lack of adequate theory ref 3/4, Conclusions on design theories od in pr 14, The formulation of the revearch objective and question 5. Research design 1.6, Outline ofthis thesis Chapter 2 Towards a descriptive framework 2.1 The process-based contingency model of organisations 2.2. Determining the elements of the model which should be operationalised in order to ft the research objective 3. Interaetion benween the production 5 23.1. Customers and customer demands al suppliers 24th 227 the production sistem and is internal environment 24. oducts 2.42. The strategie choices on markers 2.4.3, Inieraetion between the produetion system and the sales operations The manufacturing system The strategie roe of manufacturing The structuring ofthe transformation processes in the manufacturing system ‘Means, people and layout 26. The manufacturing control system 26. Production contral concepts, 16 6 is 19 19 of a very extensive literature study Mintzberg (1979) presents a range of organisational design parameters and contingency factors. He uses these to develop five ideal types of char internally and externally consistent configurations, i. organisation designs in which the na design parameters fi together and that fit to their contingent context. However. both aise contributions are on too high a level of aggregation to make actual proditction system 7 ‘Scope as os In marketing literature the realisation of external consisteney is coupled wit p orientation concept, There are several definitions of market orientation. A common £ day in them is that a company is market orientated if ts customer needs and wants are known, rane and consistently pursued in all operations of the company in order to generate superior performance for the customer and thus generate profits! (e.g. Kobli & Jaworski, 1990 Naver & Slater, 1990; Greenley, 1995). The market orientation concept advocates th need for intemal consistency by stressing that making the market visible to all parts of the ompany and pursuing a single marketing vision is @ precondition for obtaining external consistency", However, Kohli and Jaworski (1990) point out that: ‘though the literature ves Sheds some light on the philosophy represented by the marketing con o the specific activities that translate the philosophy into p he market orientation’. Van Raaij et al (1998) come to a simil he implementation of a market orientation in an organisation has in The theory on market orientation lacks the detail necessary to use it to Operates eigenen Within the operations management literature there consistent production systems. Basically there are two groups. The first group are de frame works / strategies that provide a plan of action for achieving a consistent desi ond group are theories that are b everal theories! methods to de on a philosophy and a set of techniques 1 that isin line with the philosophy. Although most fone oF other group, th nas a rigid theories ean be attribut json should not be s sul 25 wal. However, this aio can be defined es being market ercried, ae the ere any consistency with the customers ie meant bhd nek wit aor eiementsct the envio production system. However, a8 it includes a set of supporting techniques and methods losophy. It ean be used to design production systems. ‘philosophies basically only distinguish one range and be valid for every environment, the total is more than a mere phil | limitation of this type of theory is that t Jesign, Some methods claim to have a wi rs are less pretentious. ‘A well-known example in this eategory is Just In Time (IT the operations in a production system in order to ght time. However, it is not ). JIT in itself is an idea on how to design and contr products the market wants in the right quantities at the theory in the traditional sense, but a set of techniques and methods that, when used foncther, will result in te ability to make products atthe exact moment and inthe exact soeeunty that the customers request. Not surprisingly the term JIT is used for both the shy and the set of methods and techniques. Other ‘theories that belong to this vement, Computer Integrated Manufacturing (CIM) and category are Scientific Mi ductive M Summary Based on this section it is concluded that there are holistic Consistent production systems, but the majority of them lack detail. Some of the Jetail, such as JIT, but have a limited and somewhat ambi theories do provide range. In an attempt to find ft good level of detail the partial theories and methods are ut whether there are discussed in the next section, 2. Partial theories and methods es and methods, and their role in the design of consistent production systems are discussed. The theories and mettods are split into two theories and methods that include a link with the market and 2) partial i focus on internal relationships only. As there are even more In this section partial design groups, 1) part theories and methods 1 partial theories than holistic theories it would be impossible to address each of them selection has been made, After discussing the two groups, n theories and methods to design intemal and external individually and so tations of using partial de consistent production systems are discussed hods that include a link with the market Tink the market, or some of its characteristics, aples: the Partial theories and me Tere are many theories and methods th: with elements of the design of the production system. To give a few © Customer Order Decoupling Point (CODP) theory of Hoekstra & Romme (1985, 1992) predominantly links time and product range related demand characteristis withthe basic 3% pougn TM waried out os 0 JT toot ane was orginally focussed on maintenance, t hee broadened nd now eomprenends lags parts cf te design of reduction syst provid rmanufa nelude supply woods ope ( propo: ort 990 oft as t Tink contn hese 27 ‘and Slack et al (1995) id with the choice of that control structure of the production system. Both Hill (198: provide frameworks that link the characteristics of the manufacturing operations process type. The process types are a form of typolo} inelude several clements of both the manufacturing system design and its control. Also Supply chain management links the environment (customers and/or suppliers) with the goods flow control of the production system. These theories and methods all vary in Scope (which parts of the environment and the production system itsolf are addressed), range in terms of different design solutions they support, and the level of detail. In al the level of detail is much higher than that of the holisti is sufficient jan theories have some limitations th s. However, partis the next subsection discussed aft | design theories and methods that focus on internat relationships onty are algo many theories and methods that link parts of the production system desixn For example Bertrand et al. (1990) | systems, There with each other in order to achieve consistency. intemally consistemt!* production cont yout that is consistent with the products, production ‘and demand characteristics (Muther, 1955: Slack et al. 1995), or on how to information strictures for different production struct obtain consi Rijn, 1986). heories try to Fink in order to obtain a vary, but in general many of these theories can be characterised by a very high level of etal, adequate for design purposes. However, partial design theories clo have som limitations th lesign theories anal methods Although the level of detail is oflen sufficient to ma have a limited range. Consequently a theory that fits the environment has 10 be ted out of $e ory is adequate, 8 production control system there are several possibilities to choose from: MRP, JIT and DIPT based design shares, n more widely applicable aby Beara eta (2090) the leaden approach of Wien (1987) and 30 00, As the range of several (ee Niones ie not eear, H can be eifcult to select the theory that est fils the ent tah dated yrducton conto system. Aids that can hep 0 make adi tepocses max of Hil (1985) an Slack et Wy of Grobe Oetnghes (1972). These typologies enable a quick (eet une between the characteris of the environment and adequate production uch expecially for stualions tht have mulple valid solutions Pearse and provi only limited suppor. For example @ produce each eae tt Pima production line or make them all on one line. Te fist design i ‘ral possible theories before a design can be made, However, whieh and which is not. is not always obvious, For example in de proach 0} choice are typologies such as th: (199! of the typol control theories. H these typologies are somew' company that produces a range of several product families can decid expensive in terms of inve design is likely to require less investment but requires more complex production contro Which d Jined when both production structure and production control d a gn is best can only be del Jered simultaneously, Applying partial desi 28 nd production control d yen impossible, to methods that address the production structure instead of simultancously will make it difficult, o ienpare the two alternatives or any compromise design. In sucht instances the company runes significant risk that it will not end up with the best design “Another limitation of partial theories is tha, although each is adequate to design a part of stencies elsewhere. It is often not i. For example several theories ation, their partial nature can result in incor nw different partial design choices will in sited te production control are either on the goods flow contol level (MRP Tike u supply chain management) or on the production unit level (order scheduling reoreehine level). They fail to incorporate the impact the two have on each other. Local lobal suib-optimisation on all performance of 1 therefore Tead t0 a ive impact on nal consistency ‘optimisation on produetion unit level ¢ goods flow control level. This ean have the production system and endange ‘Summary The disevssion of the literature on designing consistent production systems in sections 1} Land 1.3.2 shows that the current design methods lack cither detail, range. scope oF 8 caination of the three. However, this does not automatically mean there is a problem -arrjeatny. Tt could be that industrial companies do not have a problem in making a atcnt designs and that theory has simply not caught up with practice, In order 10 din the next sec dis ahiish ifthis is the case the practical situation is 1.3.3: Is the lack of adequate theory reflected in practice? he two pr that there is a lack of adequate theory on production systems design. This soction discusses whether this investigate whether the lack of adequate theory on blem in practice would be to directly investiga jous sections indica appropriate way consistent production systems is a pr

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