01 From Taylorism to Industry 4.0 and Business Process Modelling Flashcards
Key paradigm of industrial revolution
Interchangeability of Parts
- Basis for spread of the taylorian approach
- Individual adaption of parts for assembly was no longer necessary
- Technical possibilities for measuring small part tolerances are another necessity for interchangeability
Economies of Scale
Reduction of cost per unit with accumulated production or over time are the result of three mechanisms:
Learning Curve Effect:
- Due to experience gained during the repeated execution of the same tasks, the time required and thus the unit costs sink
Automation:
- An increase in the repetition rate of process steps makes the use of automation measures profitable. Initially, these are associated with an investment, but ideally lead to a reduction in unit costs.
Technical Progress:
- The use of technical innovations, e.g. new manufacturing technologies, leads to an increase in process efficiency and thus to a reduction in costs per unit.
Abbildungen für Klausur relevant!
The four industrial revolutions
- Industrial Revolution:
- One centralized large steam engine –> Development towards many decentralized engines - Industrial Revolution:
- Division of labor at a synchronized assembly line with workplaces very close to each other –> Development towards a division of labor between geographically distant units - Industrial Revolution:
- One central mainframe computer –> Development towards many decentralized small computing units - Industrial Revolution:
- Development towards a strong increase in productivity through decentralized collaboration
Common feature about all industrial revolutions: They begin with a centralized structure and then develop towards decentralized structures. -> Phenomenon changes with fourth industrial revolution
Industry 4.0
Real-time capable, intelligent, horizontal and vertical interconnection of people, machines, objects and ICT systems for the dynamic control of complex systems.
Visualization by Stage Logic
o Visualization -> Increased data availability, near real-time (“What happens?”; See)
o Transparency -> Increased interpretability of large date amounts (“Why does it happen?”; Understand)
o Prediction -> Improvement of predictability by known patterns and realistic models (“What will happen”; Be prepared)
o Adaptability -> Decisions based on smart data (“How to react automatically?”; Self-Optimization)
Abbildung für Klausur relevant!
Elements of Industry 4.0
- Connectivity
- Real Time Capability
- Cyber-Physical Systems
- Big Data
- Artificial Intelligence
- Vertical and horizontal integration
- Machine learning
- Assistance systems
- Automation of decisions
Latencies in project realization
- Data Latency
- Analysis Latency
- Decision Latency
- Implementation Latency
Elements of Industry 4.0 can reduce these latencies
Abbildung für Klausur relevant!
Internet of Production
- Data structure constitutes the basis for realizing Industry 4.0
- Infrastructure of Internet of Production can be used for the entire lifetime cycle of products: Development Cycle > Production Cycle > Utilization Cycle
Working with the Internet of Production
- Multitude of raw data is generated
- Access to the application software has to be realized
- Extracted data is refined to smart data
- Data models are provided to smart expert
- Made decisions are given back to the level of smart data
- Data is returned to the application software by synchronizing smart and raw data
(Ausführliche Version in Zusammenfassung)
Process (Definition)
A process comprises clearly-defined inputs as well as a concrete output.
-> All factors which contribute (directly or indirectly) to the added value of a service or a product are inputs
Business Process (Definition)
A business process is a sequence of logically connected activities, that contributes to the value creation of the company, that has a defined beginning and a defined end, is typically executed repeatedly and is generally focused on the customers.
The business process can be subdivided into
- Management Processes
- Company Processes
- Supporting Business Processes
Different business processes can be identified:
- Purchasing Processes
- Distribution Processes
- Production Processes
Negative Effects on Business Processes
- Grown functional structures
- Multitude of departments are involved in order processing
- Decisions are taken only after several authorities
- Creation of departmental optima
–> Cause inefficiencies and delays
Business Process Management (Definition)
Business process management is the holistic planning, monitoring and control of business processes from the process beginning up to the completion across all functional areas.
Model
Each model is designed for and shaped by a particular question or issue. -> Different models of the same situation cannot be directly compared with one another but only evaluated regarding their appropriateness concerning the related issue.
Types of models
From objective to subjective
Descriptive models:
- Description of the current state of a system or how the system has developed in the past (e.g. technical drawing)
Explanatory models:
Explanation of the operating principle of a system (e.g. road map)
Decision models:
Focus on the derivation of measures (e.g. accounting, controlling)
Design models:
Focus on the output of a decision process (e.g. TQM, lean production)
Question of Business Process Modelling
Business process modelling deals with the question:
“Who (players) does what (tasks), when (chronological order), how (quality), utilizing what (resources) and for what reason (company goals)?”
Primary Goals of Business Process Modelling
o Business process improvement and restructuring
o Documentation
o Preparation of automation and IT support
o Compliance Management
o Fulfillment of requirements
o Determination of process key figures
o Benchmarking
o Best practices
o Definition of service level agreements
Common Methods in Business Process Modelling
o Flowchart (EPK notation)
o Flowchart (UML notation)
o Value stream mapping
o Aixperanto
Aixperanto (Analysis Instrument)
o Single process steps are defined and reproduced
o Relationships and sequences of steps are visible at a glance
o The process structure is easily recognizable
o Weaknesses are rendered visible
Process Parameters in Aixperanto
Stocks
Rejects
Iterations
Media discontinuity
Contribution to value creation
Degree of standardization
Control principles
Visualization of Process Parameters in Aixperanto
Traffic light logic (Assignment of the values “good” and “bad”)
Process elements (Easy to understand elements Intuitive understanding of process)
Swim lanes (Clarification of the interactions between departments/people involved in the process)
Kaizen lightning bolts (Direct addressing of known problems)
Benefits of using Aixperanto
Due to transparency of the most important process parameters, a uniform and company-wide understanding is created
The solution approach of a participatory process optimization enables employees to optimize the relevant core processes themselves
Employees are supported in their efforts to autonomously detect weaknesses in the processes, as well as to define and implement packages of measures
Process Mining (Definition)
Process mining is a technology for the systematic analysis and evaluation of business processes. The process mining technology uses key process performance indicators (KPPIs) to identify possibilities for the correction or improvement of processes.
Example Questions that process mining gives answers to
o Which provider offers the best chance of meeting the promised delivery date?
o Which employees do not follow the process?
o Which channel partner is more likely to downsell than upsell?
