4 Decision-making method selection

The objective of this book is to assist managers to evaluate and select the most appropriate manufacturing method or methods for their needs. The book does not pretend to supply a single technique for selection, but rather proposes several techniques, allowing the user to decide which one is most suitable. Alternatively, the user may devise his/her own technique. Section .! enables the user to select a method according to its type. The list of methods is sorted by type, classified into five categories, coded as follows" #$ #anagement $ a methodic scheme for organi%ation and managing & $ &hilosophical $ modern management methods S $ Software solution, requires a computer T $ Technological solution, requires hardware resources ' $ Au(iliary programs to methods that support the objective Section .) enables the user to select a method according to the main focus of the method, which is selected from *! focus areas as follows" *. +ocus on manufacturing hardware !. +ocus on au(iliary support software ). +ocus on production planning and control . +ocus on ne(t generation production management ,. +ocus on processing manufacturing methods -. +ocus on commercial aspects .. +ocus on organi%ation /. +ocus on advanced organi%ational manufacturing methods 0. +ocus on product design methods *1. +ocus on human factors in manufacturing **. +ocus on environmental manufacturing methods *!. +ocus on cost and quality manufacturing methods3.1 Mapping by method The objectives considered are" *. #eeting delivery dates $ production planning and control !. 2educe production costs ). 2apid response to market demands $ product design . 2educe lead time $ production ,. &rogress towards %ero defects $ quality control -. &rogress towards %ero inventory $ increase inventory turnround .. 3mprove management knowledge and information $ enterprise communication /. 3mprove and increase teamwork collaboration 0. 3mprove customer and supplier relationships *1. 3mprove procurement management and control **. #anagement strategic planning $ competitiveness $ globali%ation *!. 3mprove human resources management *). 3mprove enterprise integration $ improving supply chain globally * . 4ontinuous improvement *,. 5nvironmental production *-. #arketing $ market share. A particular method may be an answer for more than one objective. 3n some cases a method is specifically intended for one objective, but other objectives are by6products. The suitability of each method to a specific objective is graded according to the following" a $ 5(cellent for specific dedicated objective

objective

b $ 7ery good
Mapping systems 25

c $ 8ood d $ +air 9lank means that the method has nothing to do with the objective at hand. Interpreting the objective terms *. #eeting delivery dates $ production planning and control This objective refers to a method that plans enterprise production activities. The planning objective is to meet the promised delivery dates, on the one hand, and on the other hand might be used to assist sales in promising practical delivery dates. 3t considers only the planning but not the actual performance. !. 2educe production costs This objective refers to methods that actually control e(penditures, calling for efficient methods of processing, and general management techniques. :ote" production costs are a parameter at all stages of production planning methods. 8eneral methods are not included in this objective. ). 2apid response to market demands $ product design This objective refers to methods that are aimed at decreasing the time from an idea for a product to the time that actual production starts. This includes all production preparatory tasks such as product specifications, product reali%ation, product design, process planning, preparing product documentation. . 2educe lead time $ production This objective refers to methods that are aimed at decreasing the processing time. 3t may refer to hardware solutions, technological or organi%ational methods on the shop floor or e(ternal. ,. &rogress towards %ero defects $ quality control This objective refers to methods that improve processing quality, by any means, including technology, machining, process planning, administrative and control techniques. -. &rogress toward %ero inventories $ increase inventory turnround This objective refers to any methods or programs that deal with the subject of inventory management and control .. 3mprove management knowledge and information $ enterprise communication This objective refers to data collection methods and interpretation from all aspects of the enterprise, such as methods of converting information into useful knowledge and methods that capture ideas, technologies, business ventures. 3nternal and e(ternal communications networks systems. /. 3mprove and increase teamwork collaboration This objective refers to methods that deal with enterprise functions that are performed by groups, such as in design, production, and partnering with
26 Handbook of Production Management Methods

e(ternal and virtual companies. +urthermore it includes such topics as communication skills, problem solving skills, negotiation skills, etc. 0. 3mprove customer and supplier relationships This objective refers to methods that deal with topics such as customer e(pectations, customer retention, responsiveness to customers, and strategic methods of satisfying the market. Suppliers are referred to as those that produce items that are part of the processing activity e(ternally. &urchased commercial items will be referred to in the ne(t objective of procurement. ;ther topics include organi%ation structure, how to apply supply chain and choose partners, how to manage the use of temporary and contract workers, how to outsource production etc. *1. 3mprove procurement management and control

&rocurement is the purchasing of commercial items and raw materials. This objective refers to methods that involve selecting vendors and suppliers, terms negotiations, communications, methods of lead6time reduction, and commitment to delivery schedule. **. #anagement strategic planning $ competitiveness $ globali%ation This objective refers to methods that deal with general management operational decision6making in the following fields" setting enterprise goals, when and how to integrate the enterprise, e(tended enterprise, innovative management, and similar strategic planning topics. *!. 3mprove human resources management This objective refers to methods that are concerned with the human element. Topics include human resource intelligence, responsiveness of human resources, workforce fle(ibility, career planning, employee motivation, employee autonomy, and leadership. *). 3mprove enterprise integration $ improving supply chain globally This objective refers to methods that connect and combine people, processes, systems and technology to ensure that the right information is available at the right location with the right resources at the right time. * . 4ontinuous improvement This objective refers to methods that continually measure and analyse organi%ation processes with the aim of improving procedures and technologies, to identify time and material waste in production. *,. 5nvironmental production This objective refers to methods that deal with life6cycle manufacturing" design for disassembly, and technology assessment that understands social, ecological and political environments. *-. #arketing $ market share This objective refers to methods that deal with marketing techniques, market competition, global markets, sales promotion, distribution, and aspects of product design.
Mapping systems 27

3.2 Mapping by functions that the method focuses on

3n this mapping system manufacturing methods are grouped into four categories according to the following main focus topics" *. +ocus on organi%ation !. +ocus on product life6cycle ). +ocus on performance measurement . +ocus on management functions 5ach one of the above main topics is divided further into detailed functions. A particular method may be an answer for more than one objective. 3n some cases a method is specifically intended for one objective, but other objectives are byproducts. The suitability of each method to a specific objective is graded according to the following tables given for each topic. *. +ocus on organi%ation *.* +ocus on top management The grades are" b $ Top management involvement is a must c $ Top management involvement is required d $ Top management involvement is optional *.! +ocus on management staff <purchasing, finance, marketing, computing, etc.= The grades are" b $ 4ontrolled by management staff

c $ 3nvolvement of staff management must be high d $ 3nvolvement of staff management is optional *.) +ocus on line management <processing, shop floor, production planning, etc.= The grades are" b $ 4ontrolled by line management c $ 3nvolvement of line management must be high d $ 3nvolvement of line management is optional *. +ocus on employees The grades are" b $ 5mployees must lead the process c $ 3nvolvement of employees must be high d $ >ow involvement of employees is required *., +ocus on customers The grades are" b $ 4ustomers affect organi%ation performance in meeting objectives
28 Handbook of Production Management Methods

c $ 4ustomer involvement must be high d $ >ow involvement of customer is required *.- +ocus on suppliers The grades are" b $ The organi%ation must rely on supplier?s relations c $ Suppliers involvement must be high d $ >ow involvement of suppliers is required 9lank means that the method has nothing to do with the objective at hand. !. +ocus on product life6cycle !.* +ocus on product conceptuali%ation and specification !.! +ocus on product design !.) +ocus on production planning !. +ocus on processing !., +ocus on au(iliary functions <maintenance, quality, etc.= !.- +ocus on end of product life <disassembly, etc.= The grade for all is as follows" b $ @ominant factor in product life6cycle c $ 3nvolves and affects product life6cycle d $ #inor effect on product life6cycle 9lank means that the method has nothing to do with the objective at hand. ). +ocus on performance achievement <measurement $ ma(imi%e or minimi%e= ).* +ocus on quality and functionality ).! +ocus on cost ).) +ocus on enterprise fle(ibility ). +ocus on customer satisfaction )., +ocus on meeting delivery dates ).- +ocus on lead6time duration The grade for all is as follows" b $ @ominant factor in performance achievement c $ 3nvolves and affects performance achievement d $ #inor effect on performance achievement 9lank means that the method has nothing to do with the objective at hand. . +ocus on management functions .* +ocus on strategic planning .! +ocus on operational organi%ation .) +ocus on management control . +ocus on decision6making methods ., +ocus on human resource utili%ation .- +ocus on guidance

The grade for all is as follows" b $ The method depends on the relevant topic c $ The method is involved with the relevant topic d $ The method is independent of the relevant topic 9lank means that the method has nothing to do with the objective at hand.