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Result of Key Manufacturing task:

Greater Simplicity

Lower CostsSupport organization & Manufacturing

directed towards successful competition

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Developing explicit, Brief corporateobjectives & Strategyfor 3 to 5 years

Corporate Objective by Market share fornext 5 years via a strategy:Customization of product as per customer

needs

Offering advanced & Special productfeatures at a modest price increment

Gaining competitive advantage via rapidproduct development & service orientationto all size of customers

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Translating objectives and strategy intoplant level:How to achieve corporate objective and

support strategy

Weaknesses to achieve the objective Identifying probable area of failure

Loosing one of the elements, but gain in overallcombination of some of them

Introduction of new customized products, withlower lead times as compared to competitors

Introduction of new process, so as to overcometechnical problems, maintain reliability &acquiring rapid changes

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Careful examination of each element of the

production system: How it is setup, organized, focused and manned

Identifying strength of production systems

How to implement the key manufacturing task?

Reorganization of elements of structure to producea congruent focus which gives the ability to domost important and limited things well to completetask E.g. If the company is currently involved in the 5

different products, technologies, markets or volumes,

does it need five plants, five sets of equipment, fiveprocesses, five technologies and five organizationalstructures?

But the practical solution need not involve selling thebig multi-purpose facility and decentralization into 5small facilities

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More Practical approachPlant Within aPlant (PWP)PWP facility divided both organizationally &

physically into 5 PWPs

Each PWP has its own facilities, whichconcentrate with manufacturing task, ownwork force management approaches,Production control etc.

Quality & volumes levels are not mixed

Clear focus on worker training andincentives, as per expertise on engineeringprocesses, equipment & Materials handling.

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Production

System elements

Present Approach

(Conventional

Factory)

Implicit

Manufacturing

tasks of present

approach

Changed approach

(Focused Factory)

Equipment &Process Policies

1. One Large Plant2. Special Purpose

equipment3. High volume tooling4. Balance Capacity

with functional layout

Low manufacturingcosts on a steadyruns of a few largeproducts withminimal investment

1. Separate old,standardized products& new customizedproducts into 2 PWP

2. Provide generalpurpose equipment

3. Temporary tooling &modest excess capacitywith product orientedlayout

Work-Force

ManagementPolicies

1. Specialized job with

narrow job content2. Incentive Wages3. Few Supervisors4. Focus on volume

Production hour

Low costs and

efficiency

1. Create fewer jobs with

more versatility2. Pay for breadth of skills

& ability to perform avariety of jobs

3. Provide more foremenfor solving technicalproblems at workplace

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ProductionSystem elements

Present Approach(ConventionalFactory)

ImplicitManufacturingtasks of present

approach

Changedapproach(Focused Factory)

Productionscheduling & Control

1. Detailed, frequentsales forecasts

2. Produce for inventoryeconomic lot sizes offinished goods

3. Small decentralizedproduction schedulinggroup

Short Delivery leadtimes

1. Produce to orderspecial parts & stockof common partsbased on semi-annualforecast

2. Staff productioncontrol to closelyschedule andcentralized partsmovements

Quality Control Control engineers andlarge inspection groups

in each department

Extremely reliablequality

No Change

OrganizationalStructure

1. Functional2. Production under

super indents of eacharea

3. Inspection reports to

top

Top performance ofthe objectives ofeach functionaldepartment i.e.many tasks

1. Organize each PWPby program andproject in order tofocus organizationaleffort bringing new

products smoothlyand on time