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THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing

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THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing & Making Things Presented By: LaPortia James Jonathan Cullum Kelly Powell – PowerPoint PPT presentation

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Title: THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing


1
THE GLOBAL PLANT FLOORPlanetary Ecosystems for
Designing Making Things
  • Presented By
  • LaPortia James
  • Jonathan Cullum
  • Kelly Powell

2
FAB LAB
  • http//www.principalvoices.com/2007/technology.inn
    ovation/video/neil.gershenfeld/

3
Peer Production of Physical Things
  • Adoption of Wikinomics openness, peering,
    sharing, and acting global
  • End of multinational production
  • Lower costs
  • Receding trade barriers allow for goods,
    knowledge, capital, and people to circulate
    freely in the market

4
Out with the OLD, in with the NEW!
  • Out with
  • National silos
  • Insufficient knowledge transfer
  • In with
  • Global resources and capabilities
  • Human capital across borders and organizational
    boundaries

5
  • The emerging globally integrated enterprise
    fashions its strategy, its management, and its
    operations in pursuit of a new goal the
    integration of production and value delivery
    worldwide.
  • Sam Palmisano, IBM CEO and Chair

6
Managing the Ecosystem
Expertise
Capabilities
Operations
Innovationis more about orchestrating and
coordinating good ideas.
7
Part II
  • The Modular Motorcycle Gang

8
Chinas Motorcycle Industry
  • Chinas motorcycle industry illustrates peer
    collaboration and production at its finest
  • Their collaboration has led to competitive
    advantages by means of efficiency and quality
    control
  • Motor cycle production has tripled since the mid
    1990s in China

9
History
  • Yin Mingshan set up a motorcycle repair shop with
    14 employees in Chongqing
  • That was over 14 years ago. Today, his company,
    Lifan, has 9,000 employees
  • Lifan produces over 700,000 motorcycles a year in
    112 countries
  • http//www.lifanmc.co.nz/

10
Future of Lifan
  • Lifan plans to double its workforce to 20,000 in
    five years
  • Lifan wants to be a worldwide brand
  • Hopes to be instrumental in building up Chinas
    automobile industry
  • Makes mid-size cars in Asia, Middle East, and
    Caribbean
  • The Lifan 520 has leather seats, air bags, a
    spacious trunk, and a DVD system for 9,700

11
Peer Production
  • Current thinking Peer production can only be
    utilized to make information-based goods
    (composed of bits, inexpensive to make, and
    easily subdivided).
  • More people are beginning to believe that peer
    production can be applied to the production of
    actual products

12
Modular
  • If products are made to be modular then, like
    Wikipedia, producers should be able to add to and
    modify product components and designs
  • Modular means consisting of interchangeable parts
    that can be swapped without hindering the
    performance of the product

13
Collaboration
  • Chinese motorcycle producers collaborate on
    manufacturing and designs (hundreds of companies)
  • In less than ten years, Honda, Suzuki, and Yamaha
    have lost 40 of their market to Chinese firms
  • This seems to be proof that peer collaboration
    and production has been a successful approach for
    the Chinese Motorcycle industry

14
Other Reasons for Success in China
  • Chinas transition from communist central
    planning to a market economy
  • Long history of making Japanese products
  • Some argue that there is no real innovation in
    China they knocked off the Japanese's design
  • China has made reverse engineering more
    collaborative and organized

15
Chinas Approach
  • Loosely defined specifications to amend and
    improve performance (this is usually achieved
    through collaboration with other suppliers)
  • Exchange of knowledge and skills among firms
  • Face-to-face interaction encourages trust, and
    problem solving
  • Increased specialization
  • This is referred to localized modularization

16
Risks to this Approach
  • Gap in supply and demand caused by a lack of
    coordination between suppliers and producers when
    gauging the market
  • Mismatched Parts- This can arise from a lack of
    integration

17
The Lego Block Airplane
18
Boeings Approach
  • Planes are composed of Lego parts made from
    many different manufacturers
  • Economic factors, including 9/11, caused Boeing
    to have to change the way it does business
  • New approach, mass collaboration, to control
    costs and get new planes to market more quickly

19
Boeing Continued
  • Participants design and build the aircraft in
    ways similar to those who built the Linux
    operating system
  • From this process came the 787 Dreamliner,
    IMPORTANT FOR THE COMPANYS SUCCESS
  • Built among hundreds of suppliers in six
    different countries
  • Boeings new model treats suppliers as partners
    and peers, and their involvement in the process
    begins much earlier
  • Future passengers were also involved in the
    design process
  • The final assembly process cut from 13-17 days to
    as few as three days

20
Collaboration System
  • Boeing created a collaboration system called
    Global Collaborative Environment
  • Allows for collaboration in respect to design and
    product life-cycle management
  • Engineer drawings and other important data can be
    accessed, reviewed, and revised using the system
    by all partners all over the world.
  • There is also a sophisticated virtual design
    program, so suppliers can see how their parts
    will act together in real situations (at this
    stage benefits and problems can be seen)

21
Risks
  • Some worry that Boeings sharing of intellectual
    knowledge will cause them to lose its engineering
    edge
  • Leaky knowledge
  • Micromanage

22
BMW
  • German carmaker with a long-term reputation for
    quality car engineering.
  • Large international company that has sales to
    people in many countries around the world.

23
BMW
  • BMW undergoing a shift from an emphasis on
    mechanical engineering to perfecting the driving
    experience.
  • BMW focusing on more collaboration with their
    suppliers, and a shift to their suppliers doing
    more RD, design building, and assembly of their
    cars.

24
How BMW harnesses the Global plant floor
  • BMW estimates that 90 of its new innovations
    will come in the fields of electronics and
    software.
  • Suppliers already develop and build 65 of new
    vehicles.
  • Many of BMWs key innovations were from suppliers
  • Opportunities to explore develop more customer
    co-creation using the internet

25
BMW Car Models
  • 528xi Sedan 335i Sedan
    M3 Sedan
  • 6 Series Convertible X5 xDrive48
    Z4 Roadster

26
BMW Website
  • http//www.bmw.com/
  • http//www.bmwusa.com/Default.aspx
  • BMW Efficient Dynamics
  • More driving pleasure
  • Less emissions
  • Hybrids/Clean energy

27
BMW Efficient Technologies
  • The engines
  • Auto Start Stop function
  • Brake Energy Regeneration
  • Electric Power Steering
  • Air vent control
  • Gear shift indicator
  • Tyres with reduced rolling resistance

28
Summary
  • 7 Lessons on how to harness the Global Plant
    floor
  • 1- Focus on the critical value drivers
  • 2- Add value through orchestration
  • 3- Instill rapid, iterative design processes
  • 4- Harness modular architectures
  • 5- Create a transparent egalitarian ecosystem
  • 6- Share the costs and risks
  • 7- Keep a keen futures watch

29
The End
  • Jiangsu 125cc Motorcycle
    BMW 750Li
  • Boeing 747
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