MN5563 Global Manufacturing [Part B] 1.

Global Manufacturing definition & Example GM can be describe as an Enterprise combining globally distributed core competencies in customer solution provision, then co-ordinated all of the global business methods/models by working on a globally networked ICT infrastructure Ex: Zara clothes industry Marketing > Design > Production > Distribution > Service - Spanish clothes maker Zara owns all production capability - Products in own shops change every 2 weeks - Production can be flexed to meet demand - Competitors cant follow! Ex: Foxconn electronics industry Marketing > Design > Production > Distribution > Service - Global electronics production capability - Acquired and integrated OEM facilities - Major economies of scale and flexibility - Moving to design and service 2. Changing Characteristics of Manufacturing Industry o Local > Global o Factories > Networks o o o o Commoditize > Innovate Volume > Flexibility Hierarchies > Teams Craft > Knowledge

Sustainable Manufacturing Characteristic 1. Energy efficiency & effectiveness 2. Resource utilization 3. Waste minimization 4. Carbon footprint Manufacture Paradigm

Logistics Definitions The operations involved in the efficient & effective flow & storage of goods, services & related information from point of origin to point of consumption Challenges in globalization Era 1. Product demand is unstable and rapidly varies 2. Short windows of opportunity for new product 3. Product variety increases 4. Worldwide competition 5. Changing customer needs (supply > demands) How to respond to global manufacturing

Key Drivers for manufacturing evolution: 1. High precision 2. Automation 3. Sustainability Manufacture definition The full cycle from understanding markets through product design, production, distribution and related services within an economic and social context e-Business Value Organisations can be thought of as chains of inter-related activity systems associated with the production and dissemination of value

3. New business model i. Industry biz model move to new industry/redefine existing/create new industry ii. Revenue model inno. Inno. how firm generate revenue iii. Enterprise model inn inn the role played in value chain

Supply chain management The coordination of all supply activities of an Organisation from its suppliers and partners, to its customers

Complexity Analysis of GM 1. Nonlinear, dynamic and do not reach fixed equilibrium points. 2. Composed of independent agents 3. Self-organizing that merge rather than being design into the system 4. No single point of control Tools used to overcome Complexity Analysis of GM

Sustainable manufacturing as enabler tool for GM Sustainable can be defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs Fundamental issues of sustainable manufacturing 1. Materials: can each materials task be reversed? 2. Multi-materials: ensure mixed materials can be separated 3. Disassembly: design product for disassembly 4. Imperfect inputs: flexible technology to work with used materials 5. Indirect material: Eliminate use of material that does form part of final product. What are the driver to change? 1. Crisis unavoidable disaster 2. Legislation Environmental Management System 3. Consumers trust and the retailer 4. Champions individual or organization want to promote better world. Objective of Process Strategies 1. Meet or exceed customer requirement 2. Meet cost and managerial goals Process Focused Strategies (Pros vs Cons) 1. Advantages - Greater product flexibility - More general purpose equipment - Lower initial capital investment 2. Disadvantages - High variable costs - More highly trained personnel - More difficult production planning & control - Low equipment utilization (5% to 25%) Process Focused Strategies (examples) 1. Machine Shop All drill process are done together 2. Hospital 3. Bank Automated storage and retrieval system (ASRS) - Automated placement and withdraw of parts and product in inventory area

Flexible Manufacturing System (FMS) - Computer controls both the workstation and the material handling equipment - Computer control enhance flexibility - Reduced costs of changeover and low utilization Computer Integrated Manufacturing (CIM) - Extension of flexible manufacturing systems - Heavy reliance on information technology Factors that reduce the number of alternatives 1. Production flexibility 2. Technology 3. Cost 4. Human resources 5. Quality 6. Reliability

Managing Complexity Analysis of GM 1. System State - Current and projected problem 2. System performance - Current and projected value & cost 3. System stakeholder - Involvement of each stakeholder group 4. Information system - Measurement, modelling & display of system state What is e-Manufacturing e-manufacturing is the complete electronic (computer systems and networks) integration of all factory components. Users range from operators to technicians to engineers to managers. Why is e-Manufacturing Emphases the new philosophy through which manufacturing will be operated in integration with Internet technology. Some of the changes that affect e-manufacturing: 1. Digitisation 2. Globalisation 3. Mobility 4. Collaborative work 5. Immediacy