05: Production Philosophies & Performance Measurement Flashcards
Seminal POM books:
- Book1
- Book2 + 1 special topic n idea
- Book3 + principle
- 1500s De re metallica - Georgius Agricola
- >> 1776 Wealth of Nations - Adam Smith + Pin factory n DIVISION OF WORK multiplying PRODUCTIVITY by 1800!!!
- >>> 1835 On the econ f machinery n manufactures + Babbage FINANCIAL principle: skilled workers spend lot f time performing tasks below their skill level
Frederick Winslow Taylor:
Breakthrough book n 4 principles
+ consideration
+ super quote
1911 “Principles of SCIENTIFIC MGMT”:
- The scientific approach replaces rule-of-thumb
- Select, train and develop the workman
- “Heartily cooperate” with men to ensure the scientific method
- Those who think versus those who do
+ work n rest for scientifically studied times
+ “Are you a high-priced man”?
Henry Ford
2 means to productivity breakthrough
+ 2 Innovations for workers, but…
1912 - My life n work
- Mass production
- Moving assembly line! (w standardized tasks!) w cycle time f 1.19 minutes
+ 8h workday n higher salaries => can afford cars! but unpleasant work
Human relations movement
- When
- 2 effects
- 1920s/1930s
- Hawthorn effect: ppl work faster when observed
- having a social environment helps! > As a mgr, consider how you treat workers
Lens Gyllenhammar
Book n 3 principles n outcomes
1977: “ppl at work” Volvo experiments
- -humanisation f work eg team build 1 whole car
- -quality f working
- -autonomous teams
+ lower productivity > cancelled, but learnt importance f TEAMWORK
Taiichi Ohno:
- when,
- what,
- where,
- 2 why’s,
- compared w Ford
1970s ‘Just in time’ at Toyota
- > produce only what/when you can sell
- > achieve all goals of the impossible triangle of competitive priorities
- > Ford was right as new monopolist, Ohno was right in saturated market
Toyota Production System:
overarching philosophy
+ inventor
+ 4-fold slogan
+ seminal book
1 goal, 2 pillars & 3 bases (temple metaphor):
- lean production
- Taiichi Ohno
-
“Produce only
- 1. what is needed,
- 2. at the time it is needed
- 3. at the right quality,
- 4. in the right quantity”
-
“Produce only
- “The machine that changed the world”
=> analysis by Womack, Jones & Roos, not by Taiichi Ohno - “temple”
goal:
Highest Quality, Lowest Cost, Shortest Lead Time
just in time respect for ppl
————————Standardised work———————-
——————Continuous improvement——————
————Stability, Orderliness and Evenness———-
Industry 4.0:
5 buzzwords
- «Smart factory»
- Digitization of manufacturing
- Internet of Things
- Intelligent production
- Distributed manufacturing (end of factories?)
Mass customization:
- def
- 4=2+2 reqs
- “Mass production” of customized parts
- Mass Customization requires:
- 2 production system characteristics:*
- System for customer to specify requirements easily: Modularization
- Advanced manufacturing systems to enable economies of scope and scale
- 2 order-related characteristics:*
- Make-to-Order approach
- Minimum order quantity of one
Describe:
a. Craftsmanship
b. Mass production
c. Scientific management
d. Human Relations movement
e. Quality movement
f. Total Productive Maintenance
g. Toyota Production System / Just-in-time h. Lean production
i. Six Sigma
j. Mass customization
read chapter for concepts in bold:
- *a. Craftsmanship**
b. Mass production
c. Scientific management
d. Human Relations movement - *e. Quality movement
f. Total Productive Maintenance**
g. Toyota Production System / Just-in-time h. Lean production
i. Six Sigma
j. Mass customization
XPSs:
1 tradeoff & 3 characteristics
- one best way VS own best way
=> An XPS is a company- specific variant of the Toyota Production System (Lean production) - 3 characteristics:
- Tailored to the specific company, not general
(select principles of TPS, Lean, TQM, Six Sigma…)
* A **lasting** programme, not a project
(comes with top-management support)
* A common improvement **system and language**
(tool to transfer best practices within the firm)
performance measurement:
3 why’s
+ 3 cautionary notes
- “You cannot manage what you cannot measure”
- “You get what you measure”
- “If you cannot measure it, you cannot tell if you have improved”
- easy to measure <> right thing to measure
- measurement must align w operational strategy
- measurement must align w organizational culture
performance measurement:
3 definitions, bottom-up
-
perf mgmt sys = what we do with it
usually involves feedback loop
for continuous improvement
and includes:- Management
- Planning and control
- Improvement
- Development
- Rewards and recognition
-
perf measurement sys = how we measure
- Defintions
- Frequency
- Trustworthiness
- Responsible
-
perf measures = what we measure
- Safety
- Quality
- Delivery
- Cost
- Environment
- People
- metrics
- Flexibility
performance measurement: KPIs explained
in 3 bottom-up levels
+ classifications in 2 types
3 levels:
- KeyPIs => the ~10 most important ones from the below
- PerformanceIs => calculated aggregating the below
- Indicators => direct measurements
2 types:
- lagging ~ past
- leading ~ future
performance measurement:
3+ perf mgmt frameworks
- The Performance Pyramid:
objectives - alignment - measures - The Balanced Scorecard
4 perspectives - The Performance Prism
5 facets of performance - various others
