BPR IN MANUFACTURING INDUSTRY

Enablers of BPR in manufacturing:

1. Agile
2. Lean
3. JIT
4. Collaborative Technology
5. Intelligent Manufacturing
 BPR IN MANUFACTURING INDUSTRY
Agile manufacturing can be defined as the “capability of surviving and prospering in a
competitive environment of continuous and unpredictable change by reacting quickly and
effectively to changing markets, driven by ‘customer-defined’ products and services” (Cho
et al.,1996).

Agile manufacturing is a new expression that is used to represent the ability of a producer
of goods and services to survive and thrive in the face of continuous change. These
changes can occur in markets, technologies, business relationships and all other facets of
the business enterprise (Devor et al., 1997).

Agile manufacturing aims to meet the changing market requirements by suitable alliances
based on core-competencies, by organizing to manage change and uncertainty, and by
leveraging people and information.
 BPR IN MANUFACTURING INDUSTRY-
Agile Manufacturing
Agile manufacturing is a manufacturing methodology that places an extremely strong
focus on rapid response to the customer – turning speed and agility into a key competitive
advantage. It represents a very interesting approach to developing a competitive
advantage in today’s fast-moving marketplace. An agile company is in a much better
position to take advantage of short windows of opportunity and fast changes in customer
demand.

It is not about small-scale improvements, but an entirely different way of doing business
(Kidd, 1996) with a primary emphasis on flexibility and quick response to the changing
markets and customer needs.

Agile Manufacturing involves putting even more emphasis on providing a rapid response to
changing customer demands. In order to maintain a competitive advantage within the
market, manufacturing organizations must find a way to satisfy their customer demands
within a short time frame.
 WHY IS AGILE MANUFACTURING EFFECTIVE?

• Agile manufacturing is effective because it acknowledges the realities of the modern

marketplace and transforms them into a competitive advantage. It directly addresses the
following issues:

• Consumers love instant gratification. They are increasingly getting used to it and they are
often willing to pay for it. For example, have you ever ordered a product with overnight
shipping…waiting in eager anticipation?

• Consumers love choice. They prefer to get a product exactly as they want it…without
compromise.

• Consumers are fickle. Their interests shift and move in unpredictable ways.

• Agile is of particular value for manufacturers in countries with large, well-developed local
markets and high labor costs (e.g., the United States). It leverages proximity to the market
by delivering products with an unprecedented level of speed and personalization, which
simply cannot be matched by offshore competitors. It turns local manufacturing into a
competitive advantage.
 4 KEY AGILE MANUFACTURING ELEMENTS
• There are four key elements for agile manufacturing:
• Modular Product Design: designing products in a modular fashion that enables them to
serve as platforms for fast and easy variation
• Information Technology: automating the rapid dissemination of information throughout
the company to enable lightning fast response to orders
• Corporate Partners: creating virtual short-term alliances with other companies that enable
improved time-to-market for selected product segments
• Knowledge Culture: investing in employee training to achieve a culture that supports rapid
change and ongoing adaptation
 Advantages and Disadvantages of Agility
• Customer Focused Product Design
• Connected IT
• Cooperation within Supply Chain
• In Agile methods, instead of building the whole product, you build the
smallest possible useful part and give it to users, who tell you what is right
and what is wrong. Agile development is an evolutionary conversation in
which incremental steps of two to four weeks lead to feedback that allows
requirements to be tested and adjusted.

• Quality also increases in Agile projects because using a working system

exposes defects right away instead of leaving them to a final testing phase.

• Agile's popularity has led to a problem: How do you apply it at scale? How
can a large project run using Agile methods? One team working on one
project in an Agile way is not hard to envision. But what about running 10 or
20 teams, each working on part of a product? How does the list for each
iteration get sorted out and synchronized? How does the result of each
iteration become integrated into the larger whole?
Twelve principles underlie the Agile Manifesto in Software industry, include
the following:

1. Customer satisfaction by rapid delivery of useful software

2. Welcome changing requirements, even late in development
3. Working software is delivered frequently (weeks rather than months)
4. Working software is the principal measure of progress
5. Sustainable development, able to maintain a constant pace
6. Close, daily co-operation between business people and developers
7. Face-to-face conversation is the best form of communication
8. Projects are built around motivated individuals, who should be trusted
9. Continuous attention to technical excellence and good design
10. Simplicity
11. Self-organizing teams
12. Regular adaptation to changing circumstances
 2. Lean Manufacturing
• Lean manufacturing was accepted as an innovative paradigm-that eliminates
waste in any form, anywhere and at any time, relentlessly strives to maintain
harmony in the flow of materials and information, and continually attempts
to attain perfection.
• Lean manufacturing is a methodology that focuses on minimizing waste
within manufacturing systems while simultaneously maximizing productivity.
Waste is seen as anything that customers do not believe adds value and are
not willing to pay for. Some of the benefits of lean manufacturing can include
reduced lead times, reduced operating costs and improved product quality.
• Lean manufacturing is a production process based on an ideology of
maximizing productivity while simultaneously minimizing waste within a
manufacturing operation. The lean principle sees waste is anything that
doesn’t add value that the customers are willing to pay for.
 Five principles of lean manufacturing
• 1. Identify value from the customer's perspective. Value is created by the producer, but it is defined
by the customer. Companies need to understand the value the customer places on their products and
services, which, in turn, can help them determine how much money the customer is willing to pay.
• The company must strive to eliminate waste and cost from its business processes so that the
customer's optimal price can be achieved -- at the highest profit to the company.
• 2. Map the value stream. This principle involves recording and analyzing the flow of information or
materials required to produce a specific product or service with the intent of identifying waste and
methods of improvement. Value stream mapping encompasses the product's entire lifecycle, from raw
materials through to disposal.
• Companies must examine each stage of the cycle for waste. Anything that does not add value must be
eliminated. Lean thinking recommends supply chain alignment as part of this effort.
• 3. Create flow. Eliminate functional barriers and identify ways to improve lead time. This aids in
ensuring the processes are smooth from the time an order is received through to delivery. Flow is
critical to the elimination of waste. Lean manufacturing relies on preventing interruptions in the
production process and enabling a harmonized and integrated set of processes in which activities
move in a constant stream.
• 4. Establish a pull system. This means you only start new work when there is demand for it. Lean
manufacturing uses a pull system instead of a push system.
• Push systems are used in manufacturing resource planning (MRP) systems. With a push system,
inventory needs are determined in advance, and the product is manufactured to meet that forecast.
However, forecasts are typically inaccurate, which can result in swings between too much inventory
and not enough, as well as subsequent disrupted schedules and poor customer service.
• In contrast to MRP, lean manufacturing is based on a pull system in which nothing is bought or made
until there is demand. Pull relies on flexibility and communication.
• 5. Pursue perfection with continual process improvement, or Kaizen. Lean manufacturing rests on
the concept of continually striving for perfection, which entails targeting the root causes of quality
issues and ferreting out and eliminating waste across the value stream.
 The wastes of lean production

• unnecessary transportation
• excess inventory
• unnecessary motion of people, equipment or machinery
• waiting, whether it is people waiting or idle equipment
• over-production of a product
• over-processing or putting more time into a product than a customer needs,
such as designs that require high-tech machinery for unnecessary features;
and
• defects, which require effort and cost for corrections.
 Why is Lean Manufacturing Important and How Can it
Help?
•Eliminate Waste: Waste is a negative factor for cost, deadlines and resources. It provides no
value to products or services
•Improve Quality: Improved quality allows companies to stay competitive and meet the
changing needs and wants of customers. Designing processes to meet these expectations and
desires keep you ahead of the competition, keeping quality improvement at the forefront
•Reducing Costs: Overproduction or having more materials than is required creates storage
costs, which can be reduced through better processes and materials management
•Reducing Time: Wasting time with inefficient working practices is a waste of money too,
while more efficient practices create shorter lead times and allow for goods and services to
be delivered faster
 Advantages and Disadvantages LEAN MFG
• Advantages:
• 1. Saves Time and Money
• Cost-saving is the most obvious advantage of lean manufacture. More efficient workflows,
resource allocation, production and storage can benefit businesses regardless of size or
output. Time saving allows for reduced lead times and better service in providing
products quickly to customers, but can also help save money through allowing for a more
streamlined workforce.
• 2. Environmentally Friendly
• Reducing waste in time and resources and removing unnecessary processes can save the
costs in energy and fuel use. This has an obvious environmental benefit, as does the use
of more energy efficient equipment, which can also offer cost savings.
• 3. Improved Customer Satisfaction
• Improving the delivery of a product or service, at the right cost, to a customer improves
customer satisfaction. This is essential to business success as happy customers are more
likely to return or recommend your product or service to others.
• Disadvantages:
• 1. Employee Safety and Wellbeing
• Critics of lean argue that it can ignore employee safety and wellbeing. By focussing on
removing waste and streamlining procedures it is possible to overlook the stresses
placed on employees who are given little margin for error in the workplace. Lean has
been compared to 19th Century scientific management techniques that were fought
against by labour reforms and believed obsolete by the 1930s.
• 2. Hinders Future Development
• Lean manufacturing’s inherent focus on cutting waste can lead management to cut areas
of a company that are not deemed essential to current strategy. However, these may be
important to a company’s legacy and future development. Lean can create an over-focus
on the present and disregard the future.
• 3. Difficult to Standardise
• Some critics point out that lean manufacturing is a culture rather than a set method,
meaning that it is impossible to create a standard lean production model. This can create
a perception that lean is a loose and vague technique rather than a robust one.
Removing Waste

• Waste (muda in Japanese) has seven types: waste from

overproduction, waste of waiting time, transportation waste,
inventory waste, processing waste, waste of motion, and waste from
product defects. Efforts focused on the reduction of waste are
pursued through continuous improvement or kaizen events, as well as
radical improvement activities.
Lean

Look at it from a financial point of view

Traditional View: Cost + Profit = Sales Price

• We add up all the costs to bring the product to market and then we add
a profit % which dictates the selling price of a product. In our global
market place this method whilst sounding logical is frequently
undermined by the market dictating the price based on competition.
Competition and customer demand will often set selling prices. By being
able to control your costs through the elimination or minimising non
value-added activities, you can become more competitive in the market
place.

• Lean View: Profit = Sales Price – Cost

Characteristics of lean processes in a manufacturing company are:

• Single-piece production
• Repetitive order characteristics
• Just-In-Time , Kanban scheduling
• Short cycle times
• Quick changeover
• Continuous flow work cells
• Productive machines, equipment, tools and people
• Reduced space
• Multi-skilled employees
• Empowered employees
• Defect free product on first production pass
 5Ss
SORT:
The first stage of 5S is to organize the work area, leaving only the tools and materials
necessary to perform daily activities. When “sorting” is well implemented,
communication between workers is improved and product quality and productivity
are increased.

SET IN ORDER :
The second stage of 5S involves the orderly arrangement of needed items so they
are easy to use and accessible for “anyone” to find. Orderliness eliminates waste in
production and clerical activities.

SHINE
The third stage of 5S is keeping everything clean and swept. This maintains a safer
work area and problem areas are quickly identified. An important part of “shining”
is “Mess Prevention.” In other words, don’t allow litter, scrap, shavings, cuttings,
etc., to land on the floor in the first place.
STANDARDIZE
The fourth stage of 5S involves creating a consistent approach for
carrying out tasks and procedures. Orderliness is the core of
“standardization” and is maintained by Visual Controls.
Signboard strategy
Signboard uses
Painting strategy
Colour-coding strategy
Shadow boarding

SUSTAIN
This last stage of 5S is the discipline and commitment of all other
stages. Without “sustaining”, your workplace can easily revert back to
being dirty and chaotic. That is why it is so crucial for your team to be
empowered to improve and maintain their workplace. When
employees take pride in their work and workplace it can lead to
greater job satisfaction and higher productivity.
 3. JIT

Just-in-Time (JIT) is a way of producing products on order, not before anybody has ordered
the product. It also means that the product should be delivered “in time”. Just-in-Time
originally encapsulated the logistics aspects of the Toyota Production System.
• A brief summary of JIT core principles is given below: —these encapsulate key focus areas for
BPR:

• The use of multiple small machines (rather than "efficient" expensive machines that have to
be kept busy).
• Group technology (commonly called "Cellular" manufacturing)
It is based on the principle that product focused manufacturing is much simpler, with
reduced material flows, as compared to factories where similar processes are grouped
together, such as heat treatment.

Production smoothing (leveled schedules) is based on the principle — small is beautiful as far
as batch sizes are concerned, and that what is required is made when required without
inflating batch sizes.

• Labor balancing highlights line imbalance from the cycle time of one operation to the next,
and indicates the need to balance the manning for each operation (and the opportunity to
improve the slowest to achieve balance).

• Set-Up reduction — the key factor in being able to reduce batch sizes. This should be applied
to the bottleneck first and perhaps stop there.
 JIT
• Standard working (defined by the operator not the industrial engineer) —
is a prescribed sequence of production steps performed by one operator,
and balanced to the required rate of demand. It becomes the basis of
understanding the job and therefore identifying what can be improved.

• Visual controls —
Characteristic of JIT factories are simple visible controls, held locally where
they are used to monitor key performance indicators, and used as a spur to
improvement. This is a deliberate attempt to give eyeball control rather than
the over-sophistication provided by remote computer systems.

• Minimizing Inventory, Minimizing Work in Process and Synchronizing

Production

A just-in-time (JIT) or pull system implementation without any technology to

add discipline to the process will fail badly. This is being used by most
Japanese Auto Manufacturers. Auto OEMs are moving towards JIT in varying
degrees, through BPR of their production and engineering divisions
 Collaborative Manufacturing
• Also known as e-manufacturing
• The shift from made-to-stock to made-to-order has resulted in new
manufacturing environments that require IT frameworks able to
support this new dynamism.
• Collaborative manufacturing environments demonstrate considerable
potential in responding to this need. As such, the e-manufacturing
project aims to develop an appropriate framework for a common
platform to enable distributed planning and control in
manufacturing.
• Collaborative manufacturing (CM) is an approach in which
manufacturers work together with their business partners to create
value for their business.
 Manufacturing business

The pulse of information going up and down the supply chain is increasing in
frequency with a greater level of detail required at each link

Raw Material
Supplier Supplier

Plant
ace
B2B ketpl
r
Ma

ace
Plant B2B rketpl
Ma
Retailer

Distributor

Goods/Materials Flow 2B
2C
& B lace
B rketp
Information Flow Ma

Collaboration Flow
Retailer
Knowledge Flow Consumer
Financial Flow Adapted, source: Rockwell Automation
23/27
E-manufacturing:
A cyber workspace environment is developed (task a) that provides a
common platform for the other five tasks, which are supply chain planning
and scheduling (task b), distributed process planning (task c), planning-
scheduling integration (task d), remote monitoring and control (task e), and
integrated security and privacy for collaboration (task f), respectively.
Enabling tools (I)

• Data and information transformation tools

• Prediction tools
• Optimization tools
• Synchronization tools

26/27
Enabling tools (III)

• Data and information transformation tools

• Prediction tools
• Optimization tools
• Synchronization tools

27/27
Enabling tools (IV)

• Data and information transformation tools

• Prediction tools
• Optimization tools
• Synchronization tools

28/27
1. Data gathering and transformation:

• This has already been done at various levels. However, massive raw data are
not useful unless it is reduced and transformed into useful information
format (i.e., XML) for responsive actions. Hence, data reconfiguration and
mining tools for data reduction, representation for plant floor data need to
be developed
2. Prediction and optimization:

Advanced prediction methods and tools need to be developed in order to

measure degradation, performance loss, or implications of failure, etc. For
prediction of degradation on components/machinery, computational and
statistical tools should be developed to measure and predict the degradation
using intelligent computational tools.
3. Synchronization:

Tools and agent technologies are needed to enable autonomous business

automation among factory floor, suppliers, and business systems. Embedded
intelligent machine infotronics agent that links between the
devices/machinery and business systems and enables products, machinery,
and systems to:

• (1) learn about their status and environment,

• (2) predict degradation of performance,
• (3) reconfigure itself to sustain functional performance, and
• (4) informate business decisions directly from the
• device itself .
Advantages of e-manufacturing:
• By knowing the degradation of machines in the production floor,
the operation supervisor can estimate their impacts to the
materials flow and volume and synchronize it with the ERP
systems.
• The revised inventory needs and materials delivery can also be
synchronized with other business tools such as MRP system.
• When cutting tools wear out on a machining center, the
information can be directly channeled to the tool providers and
update the tool needs for tool performance management.
• In this case, the cutting tool company is no longer selling cutting
tools, but instead, selling cutting time.
• In addition, when the machine degrades, the system can initiate
a service call through the service center for prognostics.
 4. Intelligent Manufacturing System (IMS)

• Intelligent Manufacturing System (IMS) is a modern system of manufacturing that

integrates the abilities of humans, machines, and processes to achieve the best possible
manufacturing outcome. Manufacturing system refers to the entire process of gathering
inputs, arranging, and transforming them into the desired output. IMS seeks to achieve
optimal utilization of manufacturing resources, minimize wastage, and add value to the
business.

• Essentially, Intelligent Manufacturing is defined by real-time communication between

connected devices using embedded sensors and cloud-based software, coupled with
machine learning and powerful data analytics, creating a more sophisticated level of
visibility and flexibility.

• The use of intelligence in traditional manufacturing systems means bringing flexibility in

production processes, analyzing existing processes and their shortfalls, collecting
information about the same, and using the information to formulate better processes.
 Need for an Intelligent Manufacturing System
• The traditional manufacturing system failed to handle uncertainties and
complexities in processes due to the inability of the operator to keep up with
the latest technological changes.
• subsequent phases of the Industrial Revolution, existing human knowledge
and competencies faced certain limitations as they failed to keep up with
industrial developments.
• As more consumers demanded high-quality products, there was a need to
increase production levels and quality of output within a shorter time period
without raising the cost of production
• The emphasis on resource optimization and sustainable methods of
production
• manual operators could not adapt to the complexities or memorize large
amounts of data necessary to forecast production outcomes.
• there was a need to integrate the use of machines and new technology to
make quick forecasts and adopt a flexible approach to manufacturing based
on self-learning.
Intelligent Manufacturing System
 The Three Paradigms of IMS
• The concept of Intelligent Manufacturing underwent development over the
years to incorporate the latest technological changes into the system of
production. Depending upon the level of information technology and the
characteristics of its integration with manufacturing systems, IMS can be
generalized into the following three models or paradigms:
The Three Paradigms of IMS
 1. Digital Manufacturing
• Also referred to as the first-generation intelligent manufacturing, the digital
manufacturing paradigm is the foundation of IMS, on which subsequent
paradigms are based. During the 1980s, production plans and output designs
started to be made on computers instead of paper charts and graphs.

• Digital simulations are made of the factory layout, product design, use of
machinery, and labor in order to formulate the best value chain that reduces cost,
enhances product quality, and achieves optimal use of resources. Since all of the
things are done digitally, it reduces the time required for manufacturing products
specific to consumer requirements.
 2. Digital-Networked Manufacturing

• The second-generation of intelligent manufacturing integrates the use of the internet in

the computerized manufacturing system. The internet network connects ideas,
processes, and data across various production units and allows collaborative
manufacturing.

• The networking technology allows collaborative R&D among different enterprises,

connects enterprises in the same industry (horizontal integration), connects enterprises
operating on different levels of the production process within the same industry (vertical
integration), and connects users to enterprises. User interaction is the first step to
transform the production process into a user-centric one.
 3. New-Generation Intelligent Manufacturing
• The integration of Artificial Intelligence (AI) with digital and networking technologies has
led to strategic breakthroughs in IMS. The essence of AI in manufacturing processes can
completely revolutionize production techniques and replace the need for human
intelligence.

• Artificial Intelligence gives new-generation intelligent manufacturing the power to

engage in R&D and formulate new processes, designs, products, and business models
without human intervention. Since machines are faster than humans, AI will not only
reduce the time taken for production but also reduce the time taken to innovate.

• Each of the above models is not mutually exclusive; rather, they build upon the
characteristics of the previous one.