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Thinking Beyond Lean Reviewed by Alexander Kuhne Kwakye Oppong Adekunle Okunoye

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Title: Thinking Beyond Lean Reviewed by Alexander Kuhne Kwakye Oppong Adekunle Okunoye


1
Thinking Beyond LeanReviewed byAlexander
KuhneKwakye OppongAdekunle Okunoye
2
Introduction
  • From Lean Management to Multiproject Concept
  • Typology of various strategy
  • Relationship of Organisation to Business Process
    reengineering
  • Description of traditional approches towards
    organisation
  • Center Organisation

3
Organisation in Reengineering Processes(I)
  • Organisation is sensitive to a set of variables
  • Business Processes
  • Infromation Technology Use
  • Orgnisational Form
  • People Skills
  • All the elements are interdependent
  • El Sawy focuses on Business Processes while
    Cusumano and Nobeoka concentrated on
    Organisational form
  • Restructuring of any of the elements has effect
    on the performance of the Organisation

4
Organisation in Reengineering Processes(II)
El Sawy Omar
Cusumano Nobeoka
Leavitt Diamond
5
Overview of Traditional Approaches towards
Organisation
  • Matrix Organisation
  • Combines projects with functional engineering
    department
  • Differential Matrix
  • Characteristics of Matrix
  • Row/Column
  • Engineers reports to two different heads
  • Projects Head
  • Functional Head

6
MATRIX ORGANISATION
7
Product Team Organisation
  • Organisation that create independent projects
    that focus on building one project at a time
  • Duplication of many functional activities and
    component development efforts
  • Integration of functional departments of product
  • Encourages lean practices

8
PRODUCT TEAM ORGANISATION
9
Key Features of Product Development Process(I)
  • Complex and Multiple components
  • Simultaneous projects
  • Lead Time
  • Engineering hours
  • Functional Activities
  • Concept generation
  • Product Planning
  • Advanced Engineering
  • Product Engineering
  • Product Engineering
  • Pilot Production

10
Key Features of Product Development Process(II)
  • Challenges
  • Organisation of Project around Functional
    Activities
  • Scale and Scope economies
  • Whole Product development Process
  • Best result is derived from balancing of the two
    options
  • Company performance is directly propotional to
    efficeint management of projects
  • Global and high competition
  • Adoption of Common Platform

11
Key Features of Product Development Process(III)
  • Platforms
  • it defines the basic structure and performance
    charateristics of the product and incorporates
    critical aspects of design and manufacturing
    know-how
  • Technology and Knowledge transfer between
    projects
  • Platform component is most expensive part of
    product development , hence sharing platform is
    considered as extremely cost effective
  • Quick response to market changes

12
Typology of Multiproject Strategy
  • New Design
  • Concurrent TechnologyTransfer
  • Sequential Technology Transfer
  • Design Modification

13
New Design
  • Subsumes Projects starting to develop a platform
    from scratch
  • No technology transfer between projects
  • Most appropriate for project that requires latest
    technology or totally new design

14
Concurrent Technology Transfer
  • Targeted towards technology sharing between
    projects
  • Sharing of platforms between projects before
    completion of the preceding or base project
  • Encourages Collaboration, Coordination and
    Communication in design phase
  • Cost effective and flexible

15
Sequential Technology Transfer
  • Reuse base platforms but not concurrently
  • Inherit the relatively old platforms of completed
    projects
  • Risk of too many design compromise and poor
    integration of product features and subsystems

16
Design Modification
  • Takes over the base platform of the existing
    product
  • Platform is not inherited from another product
    but from its predecessor

17
Concurrent Technology Transfer and Knowledge
Transfer
  • Most efficient
  • Engineering Hours
  • Reuse of technology
  • Mutual Adjustments
  • Conduct Joint design work
  • Shorter Time lag
  • Feasibility and Efficiency of Communication
    depends on several factors

18
Concurrent Technology Transfer and Knowledge
Transfer(II)
  • These Factors can be broken down into 5 different
    area
  • Advance Planning
  • Mutual Adjustment, task sharing, and joint design
  • Transfer of fresh vs dated design
  • Problems of anonymous designs
  • Role of a General Manager for Multi-project
    management

19
Advance Planning for Technology Transfer
  • Platform transfer requires base platforms design
    adjustment to fit the new architecture and
    specifications
  • Factors responsible for changes in platform
    design includes
  • Target Market
  • Performance requirement
  • Changes in Fashion

20
Advance Planning for Technology Transfer(II)
  • The other two strategies has a long time lags
    bewteen base projects
  • Due to lack of planning to transfer it to future
    projects
  • Difficulty in problem of predicting when there
    is a long time lag bewteen two projects

21
Multi-Project Strategies and Average Lead Time
22
Mutual Adjustment, Task Sharing, and Joint Design
  • Adjustment processes are complicated
  • Requires multiple iterations of feedback between
    two projects
  • Advance planning has no effect
  • Possible in Concurrent technology transfer
  • Task Sharing
  • Joint Design

23
Mutual Adjustment, Task Sharing, and Joint
Design(II)
24
Transfer of Fresh Designs vs Dated Designs
  • Dated Design used in Sequential technology
    transfer and design modification
  • Problem with linking the old platform with new
    components
  • Design changes causes increase in Engineering
    hours

25
Problem of Anonymous Designs
  • Problem of continuity in transfering the design
    from base projects
  • Engineer movements
  • Drawings and Written specification
  • It is difficult to transfer intangible or tacit
    understanding without chronological overlap and
    direct interactions

26
Role of GM for Multi-Project Management
  • Executives can take quick decision on resources
    allocation that will enable a product to be
    reusable for more than one projects

27
Center Organisation
28
Center Organisation
  • Center Organsation
  • Clusters of similar projects
  • Duplication of some funtional departments for
    groups of similar projects
  • Semi Center
  • Clusters of similar projects
  • Centralised Functional departments
  • Largest firms use Centers or Semi Center
    structure while smaller firms use Matrix
    Organisation

29
Center Organisation(II)
  • It simplify project management and promote
    component sharing
  • Encourages frequent development of quick
    products with lower costs
  • Ideal organisation that supports knowledge
    transfer

30
Functional vs Project-Centered Organisations
  • Project-centered
  • Breaks wall between functional departments.
  • Engineers gain from cross-group meetings and
    interactions with other engineers
  • Functional organisations
  • Engineers up-to-date
  • Better position to produce radical innovation
  • Project Centered vs Functional Organisation
  • Rate of technical Changes
  • Length of Development project
  • Degree of Interdependency

31
Organisational Requirements for Multiple Projects
  • Communication and Coordination Mechanisms
  • Engineers has to communicate well and coordinate
    their work properly
  • Component transfer is related to its
    interdependency on other components
  • Knowledge Retention and Transfer Mechanisms
  • Local Knowledge
  • System or Integrative Knowledge

32
Conclusion
  • Changes in project organisational structures
    affects product development processes
  • Concurrent technology transfer is the best
    strategy that supports Knowledge transfer and
    sharing
  • Organisation form and Business processes as
    elements of organisation when adjusted has effect
    on the performance of the organisation.

33
References
  • Cusumano et al(1998) Thinking Beyond Lean- How
    Multi-Project Management Is Transforming Product
    Development at Toyota and Other Companies New
    York The Free Press
  •  
  • El Sawy Omar (2000) Redesigning Enterprise
    Processes for e-Business McGraw-Hill
  •  
  • Nonaka, I(1994) Dynamic Theory of Organisational
    Knowledge Creation Organisation Sceince/ Vol. 5
    No 1 ,14-37
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