Manufacturing Management Techniques Part 2 of 2

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Module 2: Manufacturing Management Techniques

Introduction
Slide 01: Course Overview & Agenda
Welcome to the second of two courses on Manufacturing Management Techniques. These courses will
provide a survey of current business approaches that enable a manufacturing operation to be more
effective and efficient in its role.
The two courses together will address Lean Manufacturing, Theory of Constraints, Six Sigma, Total
Productive Maintenance, Reliability-Centered Maintenance, and Quick Response Manufacturing. This
course will focus on a discussion of the Theory of Constraints, Six Sigma, Total Productive Maintenance,
Reliability-Centered Maintenance, and the Quick Response Manufacturing approach.
This course was developed by Professor Robert Handfield, who is the Bank of America Distinguished
University Professor at North Carolina State University. Professor Handfield is also the Founder and Lead
for the Supply Chain Resource Cooperative at North Carolina State University.
Slide 02: Course Objectives

After completing this course, you should be able to do three things.
First, be able to discuss why these manufacturing operations improvement approaches came into being.
Second, describe the key concepts of each approach and understand the philosophy behind it.
Third, take the concepts of each approach and understand how to apply them in your own environment.
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Note: interactive elements such as activities, quizzes and assessment tests are not available in printed form.
Slide 03: Agenda

The first course in this series covered Lean Manufacturing. This course will address the remaining
improvement techniques.
Theory of Constraints which takes a different view of how to manage the flow issues in a manufacturing
operations environment.
Six Sigma which is an approach to minimizing variation in processes.
Total Productive Maintenance is a tactical approach that addresses both flow and variation issues by
putting daily machine maintenance, machine set-up and most machine adjustments in the hands of the
operators.
Reliability-Centered Maintenance is also a tactical approach that seeks to identify and manage a
machines maintenance needs throughout its lifecycle.
And, lastly, we will touch on Quick Response Manufacturing a less intense but potentially very helpful
approach to managing flow issues within the factory.
So lets start our first topic, managing flow in the factory using the Theory of Constraints.
Theory of Constraints
Slide 04: Theory of Constraints
In recent years, a fundamentally different approach to visualizing and managing capacity has emerged.
Developed by Eliyahu Goldratt, the Theory of Constraints (TOC) is based on the recognition that nearly
all products and services are created through a series of linked processes. These process chains can be
contained within a single organization or stretched across multiple organizations (i.e., a supply chain).
Each process step has a specific capacity to produce output or take in input (as is the case with
customers), and in every case, there is at least one process step that limits throughput for the entire
chain. This process step is referred to as the constraint.
Goldratt E. 1992. The Goal. 2nd ed. Great Barrington, MA. North River Press.
Slide 05: What is a Constraint

Constraint management is a way to minimize the effects of limiting influences within the production
environment. The constraint management process identifies weak areas which inhibit the efficient flow of
the production activity. Constraints can take many forms:
x
x
x
x
A punch press that has a slow cycle time

An overhead hoist that breaks down at least once a week
A workstation on the production line that has three difficult bolt insertions
A policy that limits how long a worker can stay in the furnace area
Just as kaizen represents continuous improvement in the Lean Manufacturing arena, constraint
management follows the same principles identify the constraint, understand why the constraint exists,
what can you do to resolve the constraint, and once the constraint is addressed, where is the next
constraint?
Slide 06: What is a Bottleneck?

Physical constraints (usually called bottlenecks) refer to specific processes that constrain flow. For
example, the constraint can be internal, such as the physical capacity of a process which limits output.
Another example of an internal constraint might be workers who are not trained, and therefore not yet
skilled enough, to perform operations needed during the manufacturing process.
External physical constraints could take form of inbound raw materials. Suppliers may not have access to
materials that are in shortage. Or, the transportation capacity to move enough materials to the factory
may not be available.
Types of non-physical constraints also exist. Policies, in the form of work rules, that prevent employee
participation in certain aspects of a Lean program, are often cited as a problem. For example, a set of
work rules may prevent a worker from doing 5S and other housekeeping activities. This situation
represents a constraint. Employee measurement rules that require a certain production level per hour
could well be a constraint in a Lean implementation.
Slide 07: A Myth: Improving any part improves the whole

So how does the Theory of Constraints fit in with our discussion of process improvement?
The link here is that TOC forces individuals to look at the system as a whole, and identify constraints that
limit the entire system.
Traditionally, managers have considered each element of the supply chain or each process in the
production cycle as a separate entity. Improvement schemes were targeted to specific points along the
continuum since the goal was to reduce costs anywhere on the board.
The shortfall in this thinking is not taking the view that the functional elements are links in the same chain.
It is an erroneous assumption, in most cases, to think that improving one link improves the entire chain.
Constraint Management seeks to determine the performance of the entire supply chain. Not only the
company in which you are working but extending the reach to include the output of other companies who
are in the supply chain. Taking the whole supply chain point of view is why a company will invest in a
supplier development program to help improve their suppliers quality and delivery performance. That
single effort can, in fact, increase the company's own productivity because now the supplier is no longer a
constraint.
Slide 08: TOCs Impact on Other Functions

The Theory of Constraints can be applied to other functions in the business, not just operations.
For example, marketing will run a promotion that will boost demand for a short period, but when the
promotion ends, demand will, likely, drop back to pre-promotion levels. If there is poor communications
between marketing and operations, production may have a problem keeping up with the level of demand,
which was created by the promotion, in the short term becoming a constraint to sales. Operations, in
response to the new demand, will increase production rates which will build inventory for the new output
level. If the communication continues to be poor, when marketing stops the promotion, there will be a lag
between when operations should have slowed production and when it actually slows production. In a wellorganized company, marketing and operations would work together to ramp up production and inventory
levels prior to the promotion, then begin ramp down production as the end of the promotion nears, each
aware of the other's constraints.
Where TOC looks at the entire business process, accounting often tends to focus on optimization of
distinct processes. Rather than looking for the constraints that are preventing the system as a whole from
improving, traditional cost accounting often assumes that functions are independent and not joined.
In applying Theory of Constraints to cost management, the key to developing an effective, efficient, cost
management process is to review the entire cost management process as a whole. Look for the
constraints to efficient processing of financial activities and, using the TOC principles, address the
constraints. The important point about TOC is that it focuses on how organizations make money, not on
how much specific products cost to produce, which is the often the accounting perspective.
Slide 09: Major TOC Steps

TOC experts have suggested a five-step approach to improving the overall throughput of a process chain:
1. Identify the constraint. The constraint can be anywhere in the chainincluding the customer.
2. Develop a plan to exploit the constraint (maximize throughput for the constraint) An hour of
throughput lost at the constraint is an hour of throughput lost for the entire chain. It is therefore
imperative that organizations carefully manage the constraint to ensure an uninterrupted flow of
product. Exploit means get the most from the existing constraint resource. Exploit should be
accomplished prior to spending money to get more of the resource, and should be conscious and
deliberate. This may involve improving throughput at this station through process improvement
activities.
3. Subordinate everything to the constraint. Effective utilization of the constraint is the most
important issue. Everything else is secondary. Thus, moving workers from non-constrained
processes to constrained processes might be an important way to improve system productivity.
The third step is accomplished by
o Releasing only enough material at gating center to keep constraint busy
o Prioritizing non-constraint tasks based on constraint needs
4. Elevate the constraint. Essentially this means to find ways to increase the capacity of the
constraint. In some cases, investment may be required to add additional capacity, such as adding
another machine (especially if the current machine is already running at full capacity for all shifts).
5. Find the new constraint and repeat the steps. As the effective capacity of the constraint is
increased, it may cease to be a constraint. In that case, the emphasis should shift to finding and
exploiting the next new constraint. Step 5 is really a caution to check to ensure that the constraint
has been eliminated and to look for the next most impactful constraint.
Slide 10: Drum-Buffer-Rope

In the TOC world, Synchronous Flow Manufacturing is a variation on the pull manufacturing approach.
The significant difference between SFM and kanban is that in kanban, each station acts as its own pacing
resource. The kanban station doesn't request feed from an upstream station until it receives the signal to
do something. In SFM, the most significant constraint in the process acts as the pacing resource.
One way to view how the SFM constraint pacing works is through the metaphor of Drum-Buffer-Rope. In
Drum-Buffer-Rope, the constraining workstation's request for resupply sets the pace for the release of
materials at the beginning of the line. Hence, the constraining workstation becomes the drum, the beat
of the system.
The constraining workstation's demand acts as a trigger or rope that signals product is needed. So the
rope then is the communication that pulls material to the constraint.
Finally, there is an inventory stockpile ahead of the constraint to ensure that the constraint is not
"starved." The inventory stockpile is the buffer.
The control point represents location within the scope of the supply chain where managers choose to
focus their attention, as they define the systems internal constraint. Since control points are so important,
they are often important points for operational performance measurement. The primary control point is the
constraint, but other control points are located in areas where flows of material to and from the constraint
may be important.
Control points are typically established at:
x
x
x
x
x
x
The constraint
The first operation (gateway)
Diverging points (where a common part can be processed into one of several options)
Converging points (assemblies)
The last operation
The buffer
If, as shown in the graphic, the customer doesnt want to wait, there is a finished goods inventory buffer
that is used to service the customer demand immediately. The rope sends a message that the
constraining work-center (the drum or productive beat of the system) needs to produce another product to
replenish the product sent to the customer from finished goods inventory. However, to feed the drum
(constraint), material is removed from the second control point buffer, which is a work-in-process
inventory for processes up to the drum. When work-in-process inventory is removed from the system to
feed the drum, another rope is sent to signal the need for raw material inventory release to replenish the
work-in-process requirement. In turn, there is another raw material buffer to ensure that the work-inprocesses are not starved. And the cycle repeats itself.
Slide 11: Four Types of Plants

There are four primary types of plants in the TOC world. The four types can be combined in many ways in
larger facilities.
I-Plant: Materials flow in a sequence, such as in an assembly line. When product is moving in a sequence
from beginning to end, then the slowest operation becomes the controlling constraint.
A-Plant: The general flow of material is for many sub-assemblies to converge to build a final assembly.
Think of a large contract electronics manufacturer. They receive components from lower tier suppliers
(memory chips, plastic components, micro electronics, etc.) that they assemble into final products
(laptops, printers, telecom switches). The primary challenge in A-plants is to synchronize the feeder
production lines so that each supplies the final assembly point at the right time.
V-Plant: The general flow within the factory is that it uses a single raw material to produce many final
products. For example, injection molding machines in a plastic parts plant take raw plastic resin, heat the
resin, and inject the heated resin into molds that produce the plastic components for toys, containers, or
computers. The primary problem in V-plants occurs when a shortage of raw material causes different
molding operations within the plant to compete for raw materials the plastic resin. A constraint occurs if
one operation takes the resin intended for another process. Balancing the raw material demand for all
production lines is the key task in V-plants.
T-Plant: The general flow is like that of an I-Plant, which then splits into many assemblies. For example,
computers use multiple components (CPU chip sets, motherboards, keyboards, RAM, etc.) that can be
combined into many different end products. Which component goes into which end product is based on
the customers product order. Companies, such as Dell, are very good at producing customized end
products based on a standard set of sub-assemblies. T-plants have the same problems as A-plants
(synchronizing feeder lines) as well as robbing of parts that occurs in V-plants.
As you can see, the type of plant, as well as the level of complexity, can produce many different types of
constraint problems.
Slide 12: TOC Summary

The Theory of Constraints is not a universal philosophy, but provides an important set of frameworks for
managers to evaluate and manage productivity in their manufacturing environments. The applications of
these frameworks begin with the application of synchronous flow, a concept that is also common to Lean
Manufacturing. In order to ensure that material flows through a system, the constraints must be identified.
Although physical constraints are often cited as the most common element that limits throughput, policy
constraints around workforce issues and paradigm limitations based on managements inability to
recognize the problems can also be considered constraints. In short, constraints are anything that limits
an organizations higher performance relative to its goal (physical, procedures, and paradigms).
To understand constraints, managers must consider the entire production system, including supply chain
and marketing. This involves identifying the constraint, finding ways to exploit or improve throughput at
the constraint, re-align workers or other resources to address the constraint (subordinate), increase
capacity at the constraint through additional resources (elevate), and once the constraint is addressed,
study the process again to find the next constraint.
The Theory of Constraints also has other important applications to cost accounting,
project management, and services management that continue to evolve.
Six Sigma
Slide 13: Six Sigma
Next, we'll talk about Six Sigma. Made famous by Motorola, Six Sigma is a scientific approach to limiting
variation in processes.
Slide 14: Six Sigma

What Lean Manufacturing and Theory of Constraints do not focus on are why individual processes often
produce inconsistent results. While Lean and TOC deal with the improvement process itself required to
identify constraints, understand customer and work-center requirements, reduce setup time, improve
process flexibility, and solve problems. But to understand variability in the processes, another set of tools
is needed. The most common of these is the Six Sigma approach, which relies on understanding the
nature of variability in processes, and applying the DMAIC problem solving process to any problem.
Slide 15: Six Sigma Components

Of all the various approaches to organizing for business process improvement, the Six Sigma
methodology arguably best respresents current thinking. It is popular with many top companies. Six
Sigma has its roots in the total quality management (TQM) discipline. As we noted earlier, Six Sigma can
be a strong support to Lean in driving variation out of the process, which contributes to the goal of waste
reduction.
x
x
x
The Six Sigma methodology builds upon TQM and makes use of both the TQM philosophy of
quality dimensions that are important to customers as well as continuous improvement tools.
Six Sigma includes specific processes for guiding process improvement and new process or
product development efforts. The first of these, DMAIC (Define-Measure-Analyze-ImproveControl), outlines the steps that should be followed to improve existing business processes.
Six Sigma defines specific organizational roles and career paths.
Six Sigma has an expanded tool kit that includes computer simulation, optimization modeling,
data mining, and other advanced analytical techniques. Typically, individuals who are certified in
the Six Sigma world at the master black belt level, as well those certified at the black belt level,
provide teams with the expertise required to use these tools.
To put it another way, TQM encapsulates the managerial vision behind quality management; Six Sigma
builds upon this to provide organizations with the processes, people, and tools required to carry out this
vision.

The term Six Sigma refers to both a quality metric and a methodology. In statistical terms, a process that
achieves Six Sigma quality will generate just 3.4 defects per one million opportunities (DPMO). For a
perfectly centered process with normally distributed output, this translates into around 2 defects per
million.
In reality, most processes are not perfectly centered, resulting in a higher number of observations falling
outside the tolerance limits. Most organizations therefore use a working definition of 3.4 defects per
million to denote Six Sigma quality levels.

As a methodology for process improvement, Six Sigma has a much broader meaning. Motorola describes
the Six Sigma methodology as a business improvement methodology that focuses an organization on:
x
x
x
x
Understanding and managing customer requirements

Aligning key business processes to achieve those requirements
Utilizing rigorous data analysis to understand and ultimately minimize variation in those
processes
Driving rapid and sustainable improvement to business processes
Lets consider this definition for a moment. The first two points reinforce the idea that business process
improvement efforts need to be driven by the needs of the customer. In this case, the customer can be
someone inside the organization as well as someone from outside the organization. The third point
emphasizes the use of rigorous data analysis tools to ensure that any diagnoses or recommendations are
based on fact and not just opinion. Finally, there must be an organizational mechanism in place for
carrying out these efforts in a timely and efficient manner.
[FN]Motorola University, www.motorola.com/motorolauniversity.jsp.
Slide 18: Six Sigma Roles

Six Sigma process improvement efforts are carried out by project teams consisting of people serving
specialized roles. In the lexicon of Six Sigma, the teams consist of champions, master black belts, black
belts, green belts, and team members.
Champions are typically senior-level executives who own the projects and have the authority and
resources needed to carry them out. This can be particularly important if a Six Sigma effort requires large
investments of time or money, or if multiple functional areas or supply chain partners are affected.
Master black belts are fulltime Six Sigma experts who are responsible for Six Sigma strategy, training,
mentory, deployment and results. These individuals often work across organizations and consult with
projects on an as-needed basis, but are not permanently assigned to the projects.
Black belts are fully-trained Six Sigma experts with up to 160 hours of training who perform much of the
technical analyses required of Six Sigma projects, usually on a full-time basis.
Green belts have some basic training in Six Sigma methodologies and tools and are assigned to projects
on a part-time basis.
Finally, there are team members, who are individuals with knowledge or direct interest in a process and
can also be included on a Six Sigma project team, but are not trained in Six Sigma.
[FN]J. Evans and W. Lindsay, The Management and Control of Quality (Mason, OH: Thomson SouthWestern, 2005).
[FN]Ibid.
Slide 19: Six Sigma DMAIC Methodology

The DMAIC (Define-Measure-Analyze-Improve-Control) methodology is a Six Sigma process that
implements the basic tenants of the Scientific Method. DMAIC outlines the steps that should be followed
to improve an existing business process. The steps are as follows:
Step 1. Define the goals of the improvement activity. The Six Sigma team must first clarify how
improving the process will support the business, and establish performance targets. This ensures that the
team doesnt waste time on efforts that will not see a pay-off to either the customer or the business.
Step 2. Measure the existing process. The second step requires the team members to develop a basic
understanding of how the process works. What are the process steps? Who are the parties who carry out
or are otherwise touched by the process? How is the process currently performing? What data do we
need to analyze the process and evaluate the impact of any changes?
Step 3. Analyze the process. Next, the Six Sigma team will identify the relationships and factors that
cause the process to perform the way it does. In doing so, the team members must make sure they
identify the true underlying causes of the processs performance.
Step 4. Improve the process. Here, the team identifies ways to eliminate the gap between the current
performance level and the performance targets established in Step 1.
Step 5. Control the new process. The Six Sigma team must then work with the individuals affected to
maintain the process improvements. This may involve such activities as developing process control
charts, training workers in any new procedures, and updating information systems to monitor ongoing
performance.
An interesting analogy is that medical doctors use a variation of DMAIC in diagnosing a patient.
x
x
x
x
x
The doctor and patient DEFINE the problem (what hurts?)

The doctor MEASURES the appropriate data points (temperature, pulse, etc.)
The doctor ANALYZES the potential causes based on his/her training for root causes in medical
school. (Overweight, high blood pressure, etc.)
The doctor prescribes a treatment to IMPROVE the condition (change in diet, medication, etc.)
The doctor schedules a series of checkups to make sure the improvements stay in CONTROL
and you remain healthy.
Total Productive Maintenance

Slide 20: Maintenance Management Techniques
Moving from the process variation management role of Six Sigma, we'll next discuss two tactical
approaches that are used to maximize machine up-time on the production line, TPM and RCM.
Slide 21: TPM Specifics

TPM gives employees "a sense of responsibility and awareness of the equipment they use and [cuts]
down on abuse and misuse of the equipment," William J. Stevenson wrote in his book Production
Operations Management. TPM is increasingly being used in manufacturing environments in the United
States. It holds particular appeal for small manufacturers.
The term maintenance is used to describe the various efforts businesses make toward keeping their
facilities and equipment in good working order. It encompasses both breakdown maintenancedealing
with problems as they occur and attempting to reduce their impact on operationsand preventive
maintenanceusing such measures as inspecting, cleaning, adjusting, and replacing worn parts to
prevent breakdowns from occurring in the first place.
The primary team for effective TPM is everyone associated with the workstation or work cell
processes.The company's maintenance organization is the champion of the TPM effort they sponsor
the activity, drive the metrics, set the responsibility, and work to train operators. Operators are the first line
of maintenance and do operator-level maintenance activities as well as monitoring equipment in case it
begins to run out of tolerance. In addition to begin-of-shift and end-of-shift maintenance, operators must
work with the maintenance team as well as the production control team to ensure that more extended
maintenance requirements are met within the constraints of the production schedule.
Stevenson, William J. 1999. Production Operations Management. Irwin/McGraw-Hill.
Slide 22: TPM Goals

Preventive maintenance is performed periodically in order to reduce the incidence of equipment failure
and the costs associated with it. These costs include disrupted production schedules, idled workers, loss
of output, and damage to the product or other equipment. Preventive maintenance can be scheduled to
avoid interfering with production. Common methods of planning preventive maintenance are based on the
passage of time, on the amount of usage the equipment receives, and on an as-needed basis when
problems are uncovered through inspections. Ideally, preventive maintenance will take place just before
failure occurs in order to maximize the time that equipment is in use between scheduled maintenance
activities.
As Stevenson explained, the goal for production managers is to find a balance between preventive
maintenance and breakdown maintenance that will minimize the company's overall maintenance costs.
"Decision makers try to make a tradeoff between these two basic options that will minimize their
combined cost," he noted. "With no preventive maintenance, breakdown and repair costs would be
tremendous. Furthermore, hidden costs, such as lost production and the cost of wages while equipment
is not in service must be factored in. So must the cost of injuries or damage to other equipment and
facilities or to other units in production. However, beyond a certain point, the cost of preventive
maintenance exceeds the benefit."
The decision of how much maintenance to perform involves the age and condition of the equipment, the
complexity of technology used, the type of production process, and other factors. For example, managers
would tend to perform more preventive maintenance on older machines because new ones have only a
slight risk of breakdown and need less work to stay in good condition. It is also important to perform
routine maintenance prior to beginning a particularly large or important production run.
In TPM, production employees are trained in both operating procedures and routine maintenance of
equipment. They perform regular inspections of the machinery they operate and replace parts that have
become worn through use before they fail. Since the production employees spend so much time working
with the equipment, they are likely to pick up small signals that a machine is in need of maintenance.
Among the main benefits of TPM is that employees gain a more complete understanding of the
functioning of the system. TPM also gives them increased input into their own productivity and the quality
of their work.
ReliabilityCentered Maintenance
Slide 23: ReliabilityCentered Maintenance
Reliabilitycentered maintenance is an approach to the maintenance tasks that is predicated on the
analysis of ongoing machine performance, an assessment of future workloads and an understanding of
what the maintenance task schedule should be. Using a tool called the Failure Mode Effects and
Criticality Analysis (FMECA), the organization identifies the operating environment for the machine.
Working through the FMECA document, the specific maintenance activities for the machine can be
grouped based on when they could, and should, be accomplished during the machine life cycle.
The goal of the RCM approach is maximize the maintenance opportunities and minimize the potential
impact of a machine failure to the production plan. Coupled with a program such as TPM, RCM will
enable everyone workers, the maintenance team and even financial planners (who have to forecast tool
replacement or machine replacement for capital budgets) to have a clearer picture of equipment
operating costs.
RCM is defined by a Society of Automotive Engineers (SAE) technical standard SAE JA1011, Evaluation
Criteria for RCM Processes.
SAE JA1011, Evaluation Criteria for Reliability-Centered Maintenance (RCM) Processes" (PDF). August
1998. Society of Automotive Engineers.
Quick Response Manufacturing

Slide 24: Quick Response Manufacturing
Moving from the maintenance centered approaches; the last topic is that of Quick Response
Manufacturing. QRM represents an opportunity to use time to help your organization advance your
position in the marketplace.
Slide 25: QRM Time Sensitive

A number of firms, including Northern Telecom, Xerox, and Motorola, have experienced a significant
improvement in corporate performance, whether measured using return on assets (ROA), return on net
assets (RONA), or return on sales (ROS). All of these firms were able to link corporate performance to
several market factors.
First, they were able to translate time into profits by satisfying their "impatient" customers. These
customers are willing to pay a premium if they can get their goods and services very quickly. Alternatively,
they are "lead users," and want to be among the first to purchase a state-of-the-art product before the
general population, and are willing to pay a premium for their exclusivity.
However, there is also a secondary effect for companies which achieve time-based capabilities.
Reductions in delivery lead time translates into less inventory, less rework, higher quality, and less
overhead, which then has a direct impact on the bottom line in the form of lower costs.
In the case of fast product development, early entry into a market permits companies to gain market
share and quickly increase volumes, thereby allowing them to achieve a learning curve advantage over
newcomers to the market. This means they will always be one step ahead of competitors, because they
possess greater knowledge of the manufacturing process that accumulates with greater production
volumes. A number of indirect internal and external benefits are enjoyed by time-based competitors. The
external effects refer to competitive benefits enjoyed in the marketplace vis--vis competitors (such as
higher quality, quicker customer response, technologically advanced products), whereas the internal
effects refer to the internal benefits to different functional areas within the firm (including increased market
share, faster development of products, simplified organizations, shorter planning loops, greater
cooperation between functions, etc.).
Steven Melnyk, Phillip Carter, and Robert Handfield, "Identifying the Basic Strategies for Time-Based
Competition," Production and Inventory Management, (First Quarter, 1995), pp. 65-70.
Slide 26: QRM Time Reduction

Many of the causes of long process cycle times have to do with the symptoms discussed in the Lean
Manufacturing course. These long process cycle times, essentially delays, are an anathema to a QRM
company who lives by being able to respond quickly to customer and industry changes.
The types of areas that are focused on in QRM companies are summarized in these seven points.
Less of/System Simplification: The first process strategy is built around a simple premise: lead times
are a result of a process. Reducing lead times requires that the underlying processes be identified,
documented, examined, and simplified.
As One/System Integration: Lead times increase when processes are sequential with the various
interested parties separated by strong (often functionally-based) walls. System integration also tries to
enhance coordination by bringing the various groups together (e.g., purchasing, marketing, product
design, and operations). Tactics associated with integration include total quality management,
simultaneous engineering, and Design for Assembly/Design for Manufacture (DFA/DFM).
Same As/Standardization: Standardization emphasizes the use of common or standard processes or
parts. With standard processes, people are not faced with the task of learning or developing a new
process. Instead, they work with a process which is known to them. Standardization reduces lead time
and increases predictability, drawing on such tactics as product standardization and group technology.
At Once/Parallel Activities:Unlike the other strategies, parallel activities focus on the location of the
tasks in a process, i.e., on or off the critical path. Parallel Activities use tactics such as project
management techniques and parallel processes.
Watch It/Variance Control: Variance control focuses primarily on the predictability of the process.
Variance control draws on such tactics as JIT, SMED, process flow analysis, statistical process control
(SPC), and performance measurement.
Better Than/Automation: This strategy relies on the replacement of older, and less efficient, procedures,
technologies, and techniques by new and more efficient technologies. Tactics used by the automation
strategy include advanced manufacturing technology (e.g., robotics, solids modeling), LANs/WANs,
automated identification, CAD, CAM, CAE, CAPP, and artificial intelligence/expert systems.
More Of/Excess Resources: With excess resources, it is assumed that lead times grow because of the
presence of resource-constraints. The last process strategy reduces lead times by throwing resources at
the constraints. As implied by the label, excess resources relies on tactics such as slack resources and
employee cross training.
Conclusion
Slide 27: Course Summary
To this point, then, we have discussed four manufacturing improvement techniques that have become
widely deployed.
Six Sigma is one of the most widely applied improvement methodologies after Lean Manufacturing. This
approach is focused on reducing variance in core processes, with the objective of driving to six sigma
quality (3.4 parts defective per million parts). Six Sigma relies on identification of project priorities, then a
focused project deployment process for studying the process and eliminating variance. This process is
known as DMAIC:
x
x
x
x
x
Define
Measure
Analyze
Improve
Control
Total Preventive Maintenance moves the primary maintenance responsibility down to the person, or
persons, using the machine. A part of their daily routine includes pre-use maintenance, post-use
maintenance and adjustment maintenance during production cycles. By moving the operating
maintenance to the workers who use the machine, the person who can see variation in the performance
of the machine is also the one doing the first level maintenance and adjustment to the machine. The
benefit is typically less idle time while the machine is serviced and fewer instances of production
disruption because the machine is working out of an acceptable tolerance range.
Reliability-centered maintenance is a tactical plant-floor approach that helps to define when, where, why,
and how maintenance occurs on key equipment. The engagement of maintenance, operations, and
quality personnel to study machine behavior and be able to predict and prevent breakdowns in an
integrative fashion is at the heart of this approach.
Quick response manufacturing is focused on methodologies to reduce lead times in every aspect of the
order to delivery cycle. Similar to value stream mapping, this approach relies on studying the end to end
process, and developing creative ways to reduce the time to perform processes. Many of these elements
focus on key handoffs that occur, and rely on techniques such as parallel processing, resource
management, simplification of processes, standardization, and system integration.
Slide 28: Series Summary

Managers in this environment are continuously seeking opportunities to improve productivity, reduce
costs, drive out waste, reduce variance, improve predictability and reliability of processes, and engage
associates in continuous improvement. This course has provided a high-level overview of the most
prevalent elements of manufacturing improvement techniques that are widely applied today. Many of
these techniques build on a history of other earlier initiatives such as TQM, Just-in-Time, Toyota
Production Systems, and other branches of industrial engineering, management practice, and success
stories. They represent the current set of tools available for managers to utilize to drive out cost, waste,
and improve productivity.
While each of the techniques discussed in this two course series can be implemented alone, the greater
benefit is to view these techniques holistically, as part of an integrative model.
Lean Manufacturing focuses on the reduction of waste, through value stream mapping, engagement of
associates, and driving a philosophy of engagement and accountability. A big part of Lean relies on how
workers are asked to improve their own processes, and are given the tools and incentives to do so. This
is an important philosophical change that must be accompanied by a change in the management
philosophy and culture that an organization has.
The Theory of Constraints is closely aligned to Lean, but focuses primarily on how capacity and
constraints can impede an organization from achieving its goals and objectives. The approach provides
some important philosophical guidelines for assessing and attacking constraints, which have proven to be
applicable to a wide range of business functions.
Six Sigma is a focused improvement approach that involves first assessing all of the current problems
faced by an organization through the voice of the customer, assessing those elements and establishing
priorities, and utilizing the DMAIC methodology to study the problem, identify root causes, and develop
countermeasures.
Other techniques covered include Quick Response Manufacturing, which is focused on methodologies to
reduce lead times in the supply chain, Reliability-Centered Maintenance, and Total Preventive
Maintenance. The latter two components are focused on identifying tradeoffs between preventive and
reactive maintenance activities for equipment.
In applying these techniques, it is important to understand when and how each approach should be used.
Lean and TOC will require some important cultural elements in order to be fully implemented. Whether
you take them individually or weave them together in an integrated supply chain wide plan, these
techniques offer your organization the opportunity to do what you do better.

Manufacturing Management Techniques Part 2 of 2

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Manufacturing Management Techniques Part 2 of 2

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Module 2: Manufacturing Management Techniques

Slide 02: Course Objectives

Slide 03: Agenda

Slide 05: What is a Constraint

A punch press that has a slow cycle time

Slide 06: What is a Bottleneck?

Slide 07: A Myth: Improving any part improves the whole

Slide 08: TOCs Impact on Other Functions

Slide 09: Major TOC Steps

Slide 10: Drum-Buffer-Rope

Slide 11: Four Types of Plants

Slide 12: TOC Summary

Slide 14: Six Sigma

Slide 15: Six Sigma Components

Slide 16: Six Sigma Components

Slide 17: Six Sigma Components

Understanding and managing customer requirements

Slide 18: Six Sigma Roles

Slide 19: Six Sigma DMAIC Methodology

The doctor and patient DEFINE the problem (what hurts?)

Total Productive Maintenance

Slide 21: TPM Specifics

Slide 22: TPM Goals

Quick Response Manufacturing

Slide 25: QRM Time Sensitive

Slide 26: QRM Time Reduction

Slide 28: Series Summary

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