Initially cost was the primary concern, later quality became a priority. As the market became more and more complex, speed of delivery became something customers also needed. A new strategy was formulated: Customisability. The companies have to adapt to the environment in which they operate, to be more flexible in their operations and to satisfy different market segments (customisability).
Thus the innovation of flexible manufacturing system became related to the effort of gaining competitive advantage.
Project justification
In this changing environment BMA has to adopt a strategy that is responsive to customer demands. Orders are becoming smaller and consumption patterns are changing with customers demanding shorter and tighter lead times. This research should ultimately recommend to Management the best strategy for operational excellence. Should the research establish that flexible manufacturing is the way to go then an opportunity is open to BMA to consolidate and grow it’s market share. This project is justified on the basis that no major capital outlay is required in order to achieve flexibility. All that is required is a change in operating philosophy and system changes. Technology is secondary and this can be phased out in terms of implementation.
BMA’s vision is to be the most preferred fastener solutions provider in the region and beyond. In order to achieve this, agility is a pre-requisite and the flexible manufacturing system will go a long way in achieving this goal.
Significance or importance of study
The significance of this research to BMA is to review its operations. This is important for strategy purposes as the outcome of the research might influence how BMA addresses issues of operational excellence.
The concepts are basic and easy to implement. The good thing about this research is that it touches on a wide spectrum of management theories. The issue of competitiveness is a critical one and addresses the question of survival of BMA as a business.
Definition of terms
Flexible manufacturing system (FMS) – this is a system that allows the manufacture of different product types on one line without major changes to equipment set-up
Flexibility - to produce reasonably priced customised products of high quality that can be quickly delivered to customers.
Manufacturing - The ability to set a production schedule, to modify a part, or to handle multiple parts
Capacity - The ability to rapidly increase or decrease production levels or to shift quickly from one product to another
Delivery – product availability to the customer after an order has been put and the manufacturing process completed.
Competitors – firms dealing in the same product as BMA and targeting the same market
Fasteners – engineering components for holding pieces together such as nuts, bolts, nails and rock anchors.
Multi-skilling – arming one individual with diverse and varied skills
Plant – factory setting where the manufacturing process takes place.
High frequency – preferred fast moving products which are standard
Low frequency – non-preffered special products, which are ordered as and when, required
Research limitations
There were some limitations to this research, but this did not handicap the process nor skew the results much. There was an element of censored information due to sensitivity of issues surrounding markets and competition.
Some of the information was not easily verified because junior members of staff, not privy to strategic issues gave it in the business.
Time limitations required that the scope of the research be narrowed to BMA only.
CHAPTER II
LITERATURE REVIEW
Flexible manufacturing systems (FMS) represent a class of highly automated systems. The increased importance of this flexible manufacturing system to the survival of modern industries has resulted in increasing research efforts that address the many issues inherent in flexible manufacturing. However, not much publication has been established to serve the research needs of the growing audience of industrial and academic persons becoming involved with flexible machining and flexible assembly systems.
CAD and CAM systems have provided the means to design and plan the physical processes that will be need to manufacture the product. This is carried out on the factory floor in a way which gives rise to minimum cost, and maximum flexibility, by using the technology called Flexible Manufacturing Systems (FMS).
The scope of the research includes analysis to support the design or control of FMSs in which a variety of part types are simultaneously produced using versatile resources. These can be reallocated to produce different part types or a different mix of part types without major delays or investment. A balanced discussion of both theoretical and applied issues will be found in this research including such matters as company performance, managerial issues, and the needs of industry. Finally, the research cuts across the fields of engineering and management to include operations management, manufacturing engineering, industrial engineering, operations research and management science as they relate to flexible manufacturing.
Philosophically, flexible manufacturing incorporates a systems view of manufacturing. Agility is what businesses require at this moment. An agile manufacturer is one who is the fastest to the market, operates with the lowest total cost and has the greatest ability to please the customers. Flexible manufacturing is simply one way that manufacturers are able to achieve this agility.
Research on competitiveness pointed out that companies spent twice as much on product innovation as they did on process innovation. Peter Drucker once said: "We must become managers of technology not merely users of technology".
Since flexible manufacturing involves technology, well adjusted to the market environment’s needs, we have to manage it successfully.
Different approaches
There are three levels of manufacturing flexibility.
(a) Basic flexibilities
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Machine flexibility - the ease with which a machine can process various operations
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Material handling flexibility - a measure of the ease with which different part types can be transported and properly positioned at the various machine tools in a system
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Operation flexibility - a measure of the ease with which alternative operation sequences can be used for processing a part type
(b) System flexibilities
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Volume flexibility - a measure of a system’s capability to be operated profitably at different volumes of the existing part types
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Expansion flexibility - the ability to build a system and expand it incrementally
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Routing flexibility - a measure of the alternative paths that a part can effectively follow through a system for a given process plan
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Process flexibility - a measure of the volume of the set of part types that a system can produce without incurring any set-up
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Product flexibility - the volume of the set of part types that can be manufactured in a system with minor set-up
(c) Aggregate flexibilities
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Program flexibility - the ability of a system to run for reasonably long periods without external intervention
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Production flexibility - the volume of the set of part types that a system can produce without major investment in capital equipment
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Market flexibility - the ability of a system to efficiently adapt to changing market conditions
Today’s manufacturing strategy is to seek benefits from flexibility. This is only feasible when a production system is under complete control of flexible manufacturing technology. Having in mind the Process- Product Matrix you may realise that for an industry it is possible to reach for high flexibility by making innovative technical and organisational efforts. The Volvo process structure that makes cars on movable pallets, rather than an assembly line is a classic example. The process gains in flexibility. Also, the Volvo system has more flexibility because it uses multi-skill operators who are not paced by a mechanical line.
So we may search for benefits from flexibility on moving to the job shop structures.
Actually, the need is for flexible processes to permit rapid low cost switching from one product line to another. This is possible with flexible workers whose multiple skills would develop the ability to switch easily from one kind of task to another.
As main resources, flexible processes and flexible workers would create flexible plants as plants which can adapt to changes in real time, using movable equipment, knockdown walls and easily accessible and re-routable utilities.
CHAPTER III
RESEARCH METHODOLOGY
The research seeks to establish that product design and flexible manufacturing are crucial to the survival of BMA Fasteners. The research methodology was quite comprehensive in that the tools used were adequate to capture information that enables one to reach a rational conclusion.
The objectives are to make BMA more competitive and therefore ensure it’s continued survival in an extremely competitive market.
Instruments used
Questionnaires were used for information gathering as shown on the appendixces. The questionnaires as presented gave the respondents enough time to think about their situations and respond. The questionnaires were given to both customers and members of the organisation in order to get a balanced view on the various factors affecting order processing and servicing. The questionnaires were kept as simple and short as possible to avoid putting-off the customers and all other respondents.
Interviews were carried out with personnel involved in Marketing and Production. The Production Controllers were interviewed to establish their constraints and operational preferences. The interviews were a very effective way of collecting the data because the respondents felt compelled to make their input. Formal interviews were the preferred choice but were not always possible because of the sensitivity of the subject, including competition issues. These were employed in those sections that were prepared to volunteer information such as BMA staff and customers. Where information was hard to come by informal interviews were conducted in confidence with co-operative members of the organisation. The interviews were a good technique in that the respondents managed to give honest answers, because of the face to face contact. There was little time to modify responses and the majority of it was reality and portrayed the real issues on the ground.
Company records provided a source of vital information. A sift through the archived records brought out the trends both in the market and in production runs. This information was quite useful as it served to confirm or dispute the assumptions made in the investigation.
Subjects
The participants in this research are mainly BMA employees and some customers. The sampling of the employees was to cut across hierarchical levels and departments. The information was stratified so as to bring out the various diversities in approach, perception and exposure.
The sample size of the customers was 22, and 10 managerial employees and 30 junior or shopfloor employees. This was quite representative considering the size of the business. All the responses were taken into account and used in compiling and analysing the results.
Data Collection
The collection of data was a well thought out process as care was taken not to pressurise the subjects and also not to lose track of the instruments.
Having three distinct population groups i.e. customers , managerial employees, shopfloor staff the approach to data collection was different.
The marketing team assisted and participated in getting the question and questionnaires to customers and setting appointments for interviews. The return of the instruments was also done through Marketing and a register was maintained by this researcher to show what had come back. All the input and feedback from the subjects was captured for analysis later.
The in-house staff were fairly easy to deal with, as follow-ups were constant with the subjects approachable. It is important to note that the collection was timely and the information brought back was of a high standard.
There were challenges in getting feedback from the shopfloor because of some skepticism and an apparent lack of appreciation of the research exercise. However, these were overcome as the buy-in of the subjects was sought and some convincing done.
CHAPTER IV
DATA PRESENTATION AND DISCUSSION
All the data that was collected during this research was scanned and sifted re-organised and summarised as presented below. The presentation took the form of tables, graphs/charts and text.
CUSTOMER RESPONSES
The objective of this category was to examine how customers perceive a good business. The table shows that most customers (40.9%) preferred to deal with a business where their requirements will be met in a very short time. Hence flexibility in manufacturing will ensure that the different ranges of products and customer requirements are available at any one time.
MANAGERIAL EMPLOYEES
The subjects in this category were required to respond on the business drivers and market trends. The results show that product availability diversity are the major drivers as customers are coming up with unique tastes, and demanding shorter lead times. This is followed by product availability with 40%. In order to achieve this, a high degree of flexibility will enhance these factors.
JUNIOR AND SHOPFLOOR STAFF
In as much as rewards (30%) are very important in employees’ lives there is great realisation that customer expectations have to be met. As shown in the Customers Category, flexibility (at 30%) is also key as the customers do not want to stock a lot. The fact that a subject preferred customer expectation points to the fact that flexibility as preferred by the customers is a key aspect.
ALL CATEGORIES
The overall results show that delivery, diversity and flexibility rank top most from the perspective of the customer, management and employees.
If a lot of emphasis is put in this area then this will enhance the competitiveness of BMA. This position is supported by the performance historical information as outlined below.
There has been a general shift from high frequency products to low frequency, which are specials which are ordered on an ad-hoc basis.
This shift from a dominantly high frequency to low frequency indicates that customers are more and more looking for specials in the fastener business, and this puts pressure on the supplier. The best response strategy is flexibility and that is where the FMS comes into play.
Another thing that emerged from the archived information is that whilst BMA dominates in the market, as illustrated on fig. 2, there is a significant presence of competition. The other players run single line production as evidenced by the feedback from customers. BMA has to increase its flexible manufacturing capacity in order to capture a big chunk of the rest of the market.
CHAPTER V.
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary
The study set out to examine how flexible manufacturing can contribute to BMA’s competitiveness. A sample of 62 customers, managerial employees and junior staff was used in the survey. The study was largely prompted by the pressure being exerted by customers on delivery with shorter lead-time and changed product profiles.
The research had its challenges because some of the information was not as free flowing due to various sensitivities. Most responses seemed genuine, but there were a few instances where the information seemed to be modified, as BMA is currently running on a mixed flexible system and batch processing.
Despite all these factors the research was fairly objective, with interesting findings being made, leading to the following conclusion:
Conclusion
The research found that there is a marked preference in customer expectations and a shift in product trends. Given increased competitive pressures, globalisation and shorter product life cycles, it is quite clear from the results of this research that product design and flexible manufacturing can contribute to BMA’s competitiveness.
The inherent level of flexibility in BMA’s manufacturing system is good, but this can be formalised and implemented with much more benefits derived.
Recommendations
It is recommended that BMA embarks on a formalised and well coordinated flexible manufacturing system. A SMED programme would then support and compliment this system. The capital outlay is envisaged to be small considering that no major equipment changes are required.
Implementation issues
The base/ foundation has already been laid and set and this makes it conducive for the implementation process. There are resources that will be required and an evaluation indicates that these are readily available at BMA Fasteners. The researcher has gone further to examine the advantages and disadvantages of the flexible manufacturing system to assist management in making a rational decision.
The resources required for this are:
- Human – the skills are available with the technical and engineering pool accessible to BMA. Low level use of consultants might be required, and the National University of Science and Technology can easily provide some industrial engineering students who can make some input into this.
- Financial – the funding for this will be through the repairs and maintenance budget, and in order to ease the burden on cash resources these will be phased over a period of time.
- Equipment – the equipment at BMA should be able to adapt to the requirements of this process, as it will entail mostly upgrading and automating current equipment. The new machinery that will be purchased will be part of the plant re-capitalisation.
- Time – a fully-fledged system would take about six months and this will be built into the normal operational time.
Advantages
- Faster, lower- cost changes from one part to another which will improve capital utilisation
- Lower direct labour cost, due to the reduction in number of workers
- Reduced inventory, due to the planning and programming precision
- Consistent and better quality, due to the automated control
- Lower cost/unit of output, due to the greater productivity using the same number of workers
- Savings from the indirect labour, from reduced errors, rework, repairs and rejects
Disadvantages
- Limited ability to adapt to changes in product or product mix (ex. machines are of limited capacity and the tooling necessary for products, even of the same family, is not always feasible in a given FMS)
- Substantial pre-planning activity
- Expensive, costing millions of dollars
- Technological problems of exact component positioning and precise timing necessary to process a component
- Sophisticated manufacturing systems
Reference
- Imai, M, 1986 Kaizen: The key to Japan’s Competitive Success – McGraw-Hill
- Mondem, Y, 1983, Toyota production System: Practical Approach to Production Management, -Industrial Engineering and Management Press
- Williams,K., Williams J., Haslam C., 1989, International Journal of Operations and Production Management
- Internatinal Journal of Production Research Vol. 26, 1988
- Porter M.E, 1990, The competitive advantage of Nations
- Jimmie Brown, John Harhen, James Shivnam – Production Management Systems – A CIM Perspective
QUESTIONNAIRE ON FLEXIBLE MANUFACTURING
CUSTOMER
WHAT DO YOU LOOK FOR MOST FROM A SUPPLIER?
(Please tick the appropriate grade – A being the highest and D the lowest)
HOW LONG HAS YOUR STOCKING POLICY REMAINED CONSTANT? --------------
COMMENTS AND FURTHER INFORMATION:
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QUESTIONNAIRE ON FLEXIBLE MANUFACTURING
SHOPFLOOR STAFF
(Please tick the appropriate grade – A being the highest and D the lowest)
COMMENTS AND FURTHER INFORMATION:
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QUESTIONAIRRE ON FLEXIBLE MANUFACTURING
MANAGERIAL STAFF
(Please tick the appropriate grade – A being the highest and D the lowest)
WHAT ARE YOUR MAJOR PRODUCTION CONSTRAINTS?-------------------------------
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COMMENTS AND FURTHER INFORMATION:
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