Discussion of Production under Pressure Question: 1.

The author describes a change from mass production of stable product lines of poor quality to a situation using new technology leading to broad product variety, short lead time and high quality. a) Why is this change happening? b) What implications does it have for manufacturing firms and their operations?

Answer: a) The change is happening due to new emerging trends in production due to shift in customer requirements. The source of major changes comes from 1. Increased competition 2. Social changes 3. New technological advancements These changes are consequently requiring the change in production manager behaviors to shift from static skills to more dynamic ones. It is also requiring transformations in current production setups from routine assigned tasks to broader production functions. In mass productions era, the major concerns were production with a little attention paid to quality of production, processes and system. However, shift in demands required a variety of product lines from single production facility, reduced lead times, low costs and better quality posing new challenges for production managers.

b) Author sees the change from mass production to era of new technology as a major challenge for local industry. The change is posing a major threat to US manufacturing industry as industry and production managers are not well prepared for the challenge. Author raises his concern that many senior management members and production managers are overlooking these changes. Rising pressure level and demands are putting managers under stress. Educators and researchers are also unable to train managers up to mark for such challenges. The specialized workforce is also not available in required number. Author has characterized problems due to the challenge in three major classes 1. New Pressure from outside the firm 2. New problems within the firm 3. The impacts of accelerating technology

Pressure From Outside There is a huge external pressure on the production abilities of the manufacturing firms and their operations. These can be mainly categorized as increasing competition and marketing pressures Increasing Competition There are two sorts of competitions that are putting pressure on the manufacturing industry. These can be categorized as local industry competition and foreign competition. Local industries having overcapacity and corporate objectives of growth and diversification has made the local industries to expand their boundaries to new production lines. This has increased the competition among the local industry tougher. Defense and consumer industries are looking opportunities in each other. These factors are intensifying the competition. Globalization is also posing a threat to local industry. Foreign companies are taking the lead due to better price and quality. They have also removed their shortcoming of distribution and service facilities. Marketing Pressures Companies are also facing intense marketing demands for shorter lead time, improved quality without much impact on price and more immediate deliveries. Frequent new products and modified product launches raise the demand to replace old uninterrupted long runs with special run. Special runs in turn required more setups, different worker skills, special purpose tools, unique processes and quality and production control techniques. Pressure from Inside As the author suggests, the internal pressures are always there with the industries but it is the critical nature of change and other two factors which has raise the intensity of the problem. Reevaluation cost control, manning the operation and handling the paper work fall under this category. Reevaluating Cost Control The costs control has become a difficult task as indirect labor costs and fixed costs getting higher in proportion than direct labor and variable costs. Change is work condition also posing challenge that how to motivate employ through wages and incentives. Old techniques of labor control are not being well enough to serve the task Manning the Operation Challenge to handle two diverse classes of highly skilled labor force and relatively unskilled workforce put a big task in front of management. Low college fees and its recognition as quick way of earning a job is a big attraction for youngsters but it is also drawing future potential off the track. Management is also suffering from describing the right person for the right job. There is a demand of work-force management change along with changes happening around in environment. Handling paper Work

The demand of new challenges is becoming a new better information system which would be more complex rather than old paper work phenomenon. New communications and resulting integrated systems are making production manager s job even tougher. Accelerating Technology Technological changes are posing challenges in following ways Equipment decisions Newer equipment has enhanced various production aspects including productivity, quality, product design but it has also made the equipment decision more difficult. New technology is quite expensive than older one so careful decision is required for the equipment purchase as there is a high degree of uncertainty about feasibility, reliability and economic life of the new equipment. Engineering Changes From the mass production age where a single layout plan had worked for long time and methods-engineering groups worked for them, the new workplace was having a shift to where work had to be done for new products in bits and pieces. This problem was a big challenge for the production manager as they had to devise the properly engineered layout for the jobs. Materials and Processes Another rising problem was due to constant induction of new materials and processes. Research trends bringing new materials by every day in the market which not only posing a challenge to adjust and make new processes and equipment but handling the manning, maintenance and controls for them as well.

Q#2 Demand of rigorous standards of performance with inadequate improvements in the means of handling them is the major cause of concern for the author. He argues that managers lack in coping to the demand of change because of the enlisted factors 1. Outmoded Tools Production managers had outdated tools to co-op with the current scenario. Demands of the current challenges were comprehensive thinking, requirement to analyze and define systems for needs and jobs to be done, careful planning and co-ordination of technological functions, work of people and informational procedures. Indirect labor, introduction of new products and planning for integrated and flexible systems make the current management tools ineffective to accomplish the task. 2. Adaptive Problem with Useful new methods According to author, new tools have been developed that are good enough to cope with the changes. However, there are some problems associated in adapting new technology. First the major concern is complexity of the new tools. Training requirements to understand and implement new techniques is higher. Moreover, researchers have more emphasized on theoretical aspects rather than practical applications of new tools. Simplified models have eliminated vital factors and are inaccurate and misleading. 3. The Talent Shortage The shortage of right talent to accomplish the task under current pressure circumstances is also a concern for the author. In the past, production managers were promoted from the lower production ranks to the higher ones. Business education schools were also equipping the managers with the right education for their tasks. However, both the industry and business schools were unable to equip the industrial people with the right skills for the new work environment. Manufacturing engineers were usually graduates from the engineering colleges and did not required much business education for the production activities. Recently the trend was shifted and even engineers now required to have some business knowledge to run the operations matters more smoothly.