Manufacturing Strategies

Abstract

Manufacturing strategies are the plans and methods that are particular to furthering the goals of a company that makes products. This article outlines features of five strategies that are frequently used by manufacturing companies: Strategic management; design for manufacturability; lean manufacturing; Six Sigma; and manufacturing for a sustainable society. The article includes a glossary of relevant terms.

Keywords Additive Manufacturing (AM) Technologies; Concurrent Engineering; Control Chart; Design for Manufacturability; DMAIC; Lean Manufacturing; Manufacture; Offshoring; Outsourcing; Poka-yoke; Product Lifecycle Management (PLM); Quality Control; Rapid Prototyping; Remanufacturing; Six Sigma; Statistical Quality Control (SQC); Strategic Management; Strategy; Sustainable Manufacturing Initiatives; Sustainable Society

Manufacturing > Manufacturing Strategies

Overview

The manufacturing industry is composed of companies that make products by hand or by machine. In this article, the focus is on manufacturing strategies for products that are made by machine.

What is Strategy?

Merriam-Webster's collegiate dictionary includes multiple definitions for the word "strategy," including definitions that focus on the art and science of military maneuvers for overcoming the enemy. While there certainly may be common elements between military strategy and business strategy, the definition of strategy that is considered for this article is the following:

What are Manufacturing Strategies?

Manufacturing strategies are the plans and methods that are particular to furthering the goals of a company that makes products.

One or more of the following five strategies are frequently used by manufacturing companies:

• Strategic Management
• Design for Manufacturability
• Lean Manufacturing
• Six Sigma
• Manufacturing for a Sustainable Society

Applications

This section examines the five strategies that are frequently used by manufacturing companies. Some of the strategies overlap with others. For example, the first strategy examined, strategic management, may incorporate the remaining four strategies. And the third strategy, lean manufacturing, may incorporate design for manufacturability and Six Sigma. Together with this overlap, the concept of flexible manufacturing systems (FMS), in which the system is designed to adapt to any changes it encounters, allows companies to evolve their strategies as needs or conditions require.

Strategic Management

The first manufacturing strategy is strategic management. Strategic management revolves around devising and following a detailed plan for capturing and maintaining a competitive advantage in the marketplace. Presumably, most manufacturers would have some sort of plan for competing in the marketplace, so how does strategic management elevate that plan to "strategy" level? A strategic management plan does the following:

• Determines broad concepts of mission and goals;
• Defines long and short-term objectives;
• States the specific details of analysis and decision-making;
• Assigns roles and responsibilities for implementing the plan;
• Establishes timelines for accomplishing each aspect of the plan.

As you can see, strategic management is comprehensive and is characterized by a clear, detailed plan for competing in the marketplace; it is this detailed plan that elevates strategic management to "strategy" level.

Design for Manufacturability

The second manufacturing strategy is design for manufacturability.

The manufacturability of a product refers to characteristics that make the product suitable for reproduction (manufacture), usually on a large-scale basis.

Manufacturability is dependent upon two conditions:

• The ability to consistently manufacture a reliable product without problems.
• The ability to manufacture the product at minimal cost.

When these two conditions for manufacturability are given foremost consideration during the design cycle of a product, the concept is known as design for manufacturability (DFM), also known as design for manufacture.

The principle behind DFM is to create the ability to economically manufacture a reliable product into an initial design rather than to fix problems later in the manufacturing process. This principle expands the idea of "do it right the first time" into "do it right the first time, but as inexpensively as possible."

DFM generally relies upon standardization practices; it incorporates manufacturing processes that use standard parts, reduce the number of parts, and minimize handling during production. However, the most sophisticated DFM strategies allow for a range of product customization.

Depending upon the product or manufacturing process, DFM may incorporate a variety of tools to reach its goal.

The following is a brief description of four DFM tools:

• Additive Manufacturing (AM) Technologies
• Concurrent Engineering
• Poka-yoke
• Product Lifecycle Management (PLM)

Additive Manufacturing (AM) Technologies

The first DFM tool is Additive Manufacturing (AM) Technologies. AM technologies, also known as "rapid prototyping," allow a manufacturer to fabricate customizable parts of any shape from complex materials. (Rapid prototyping refers to quicker-than-average production of models for the purpose of working out problems. ) Because of its intent to tackle the manufacturing issues involving the complexities of shape and materials, AM technologies have the potential to move beyond providing cost-cutting benefits to actually achieving new, higher manufacturing capabilities (Rosen, 2007, p. 585-586).

Concurrent Engineering

The second DFM tool is concurrent engineering. Concurrent engineering is a method of product or process design that includes simultaneous input from everybody with a stake or role in the final product, including engineers, salespersons, support personnel, vendors, and customers, throughout the entire design process (Sapuan, 2006).

Poka-yoke

The third DFM tool is Poka-yoke. Poka-yoke is the concept of mistake-proofing the entire manufacturing process by preventing mistakes in the product design, the process, and from human actions. Poka-yoke refers to the mechanisms used throughout a manufacturing process to ensure that proper conditions exist before a process step is begun. Or, if it is not possible to invoke poka-yoke before the process actually begins, then it is used to detect defects at the earliest point in the process (Manivannan, 2007). Poka-yoke is also frequently employed as part of a lean manufacturing strategy. (See also "DFM Tools: Lean Manufacturing.")

Product Lifecycle Management (PLM)

The last DFM tool is Product Lifecycle Management (PLM). PLM integrates all the people, processes, and information related to a product in order to communicate information across the enterprise, from initial product concept to the end of its life. PLM takes the concept of concurrent engineering (people and process integration throughout the design cycle) further, by applying the principles throughout the product's life, from inception to disposal.

Lean Manufacturing

The third manufacturing strategy is lean manufacturing. Lean manufacturing refers to a company's ongoing, systematic effort to eliminate the sources of waste in a production process.

Syddell (2005, p. 20), notes that Brad Perkins, senior director, auto and industrial, for Oracle Asia Pacific, indicated that there are eight major causes of waste in the production process:

• Over Production

• Waiting

• Conveyance
• Processing
• Inventory
• Unnecessary Motion
• Processing Failures

• Space

The following six tools are frequently used to combat the major causes of waste in the production:

• Cellular Manufacturing
• Just-in-time (JIT)

• Kaizen

• Kanban

• Poka-yoke
• Outsourcing

Cellular Manufacturing

The first lean manufacturing tool is cellular manufacturing. This strategy involves the arrangement of "production work stations and equipment in a sequence that supports a smooth flow of materials and components through the production process with minimal transport or delay" (EPA, 2003, p.11). Cellular manufacturing minimizes the time required to manufacture a single product by moving the product through the entire production process one-piece at a time, according to a rate determined by a customer's needs. Cellular manufacturing is in direct contrast to batch-and-queue (also known as large-lot) production which involves processing multiple parts before moving them onto the next machine or process (EPA, 2003).

Just-in-time (JIT)

The second lean manufacturing tool is JIT. The practice of JIT refers to the supplying of parts or items at the time that they are needed and not before. JIT can apply to parts or items supplied to the manufacturer or to the items that the manufacturer produces for its customers. In either scenario, JIT directly contrasts with the practice of building up inventory by stockpiling items.

Kaizen

The third lean manufacturing tool is kaizen. Kaizen is a Japanese term that refers to the process of continuous improvement, often in small, incremental steps. To be effective, kaizen must involve the entire workforce in its philosophy and practice.

Kanban

The fourth lean manufacturing tool is kanban. Kanban is an integral part of the JIT production process; it is an information tool that specifies exactly which parts or items are needed during the production process and exactly when they are needed.

Poka-yoke

The fifth lean manufacturing tool is poka-yoke. Poka-yoke refers to error-proofing the production process during the design phase to eliminate faulty products altogether, or if that is not possible, to detect defects at the earliest possible moment in the production process. Poka-yoke is also frequently employed in DFM strategies. (See also DFM Tools: Poka-yoke.)

Outsourcing

The last lean manufacturing tool is outsourcing. When a manufacturer hires another company to manufacture parts, or perform services (such as testing of products) instead of doing it in-house, this is called outsourcing. Products or services are usually outsourced because it is less expensive than doing so in-house. (Or, because the hiring company does not have the expertise in-house.) While products or services are sometimes outsourced to companies within the United States, they are often outsourced to foreign countries with cheaper labor rates for skilled workers. Outsourcing to foreign countries is known as "offshoring." While such practices can be efficient and cost-effective, they have also been criticized for various alleged economic and social impacts.

Six Sigma

The fourth manufacturing strategy is Six Sigma. Six Sigma is a tightly-managed, statistical quality control methodology that is used to detect and eliminate defects or variations in the manufacturing process.

Six Sigma involves a five step process, called DMAIC, which stands for the first letter of the word in each step:

• "Define (Identify the variable to be improved.)"
• "Measure (Capture data on the identified data.)"
• "Analyze (Brainstorm the root cause variables and their relationship with the variable that is to be improved.)"
• "Improve (Remove root causes and/or minimize variations around the mean of the target variable.)"
• "Control (Sustain the improvements in the process via control chart applications.)" (Calabrese, 2007, p. 31). The control chart, a significant feature of Six Sigma methodology, is used to plot and graph a process over time in order to detect variations.)

Manufacturing for a Sustainable Society

The last manufacturing strategy is manufacturing for a sustainable society. A sustainable society is one that meets current environmental, economic, and community needs without compromising those needs in the future.

There are three main categories of issues that affect a sustainable society.

• Environmental issues
• Economic issues
• Community issues

A manufacturer that intends to incorporate a strategy that embraces and contributes to a sustainable society may incorporate a variety of practices that tackle the three issues, including the following initiatives:

Environmental Issues: Initiatives

• Design products that are recyclable or biodegradable.
• Purchase products from companies that employ sustainable packaging.
• Offer financial incentives to employees who travel to work by bicycle, public transportation, and hybrid or electric motor vehicles.
• Operate facilities during non-peak utility and travel hours.
• Offer to remanufacture products when appropriate. (Remanufacturing "is the process of disassembly of products during which time parts are cleaned, repaired or replaced then reassembled to sound working condition") (The Remanufacturing Institute, n.d.)

Economic Issues: Initiatives

• Streamline costs and processes in order to offer goods and services at a fair price.
• Pay employees fair wages.
• Promote and enforce equal opportunity for employees.
• Refuse to do business with companies that engage in child labor or other human rights violations.
• Refuse to invest in companies or countries that engage in child labor or other human rights violations.

Community Issues: Initiatives

• When building or developing facilities, provide additional community benefits such as burying utilities, improving existing roads, or bringing in high-speed Internet access.
• Contribute funds for fire, police, and social service organizations.
• Contribute funds and manpower to projects that provide free or low-cost medical care, food, and housing to low-income persons.
• Volunteer funds and manpower for community service projects, such as beautification programs, arts programs, community gardens, playgrounds, and after-school programs.
• Set aside a percentage of new housing for affordable housing. If building or developing on land that will displace low-income persons, fund suitable alternative living arrangements for them.

Terms & Concepts

Additive Manufacturing (AM) Technologies: Enable the fabrication of parts and devices that are geometrically complex, have graded material compositions, and can be customized. This technology is also known as "rapid prototyping" (Rosen, 2007, p. 585). (See also "Rapid Prototyping.")

Concurrent Engineering: A method of product or process design that includes simultaneous input from everybody with a stake or role, including engineers, salespersons, support personnel, vendors, and customers throughout the entire design process.

Control Chart: "A chart with upper and lower control limits on which values of some statistical measure for a series of samples or subgroups are plotted. The chart frequently shows a central line to help detect a trend of plotted values toward either control limit" (American Society for Quality, n.d., Glossary).

Design for Manufacturability (DFM): The tailoring of product designs to eliminate manufacturing difficulties and minimize costs (Rosen, 2007, p. 585). Also known as design for manufacture.

DMAIC: "A data driven quality strategy for improving processes and an integral part of a Six Sigma quality initiative. DMAIC is an acronym for define, measure, analyze, improve and control" (American Society for Quality, n.d., Glossary).

Lean Manufacturing: An ongoing, systematic effort to eliminate the sources of waste in a production process (Mark, 2007).

Manufacture: To make a product from raw materials by hand or by machine (Merriam-Webster's collegiate dictionary, 2000).

Offshoring: The movement of domestic production (and the related jobs) offshore (United States Government Accountability Office, 2004, p. 55).

Outsourcing: The procuring of services or products from an outside supplier or manufacturer in order to cut costs (Brooks, 2004, p. 4).

Poka-yoke: A concept introduced by an engineer at Toyota Motor Corporation in 1961 that uses process or design features to error-proof the entire manufacturing process by preventing the manufacture of a non-conforming or faulty product; promoting safer working conditions; and preventing machine damage. The original term was "baka-yoke" which translates as "fool-proofing," but in 1963, a worker at Arakawa Body Co. refused to incorporate the process into her work because she felt that the term was dishonorable and offensive, so it was changed to poka-yoke which means error-proofing or mistake-proofing (Manivannan, 2007, p. 18–19).

Product Lifecycle Management (PLM): "A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise from concept to end of life, integrating people, process, and information" (CIMdata, Inc. as cited by Gould, 2002, p.44).

Quality Control: "The operational techniques and activities used to fulfill requirements for quality" (American Society for Quality, n.d., Glossary).

Rapid Prototyping: Quicker-than-average production of models for the purpose of working out problems. (See also "Additive Manufacturing (AM Technologies.")

Remanufacturing: The process of refurbishing products by taking them apart to clean, repair, and replace parts as needed, then reassembling the product in working condition.

Six Sigma: "A method that provides organizations with tools to improve the capability of their business processes. The increase in performance and decrease in process variation leads to defect reduction and improvement in profits, employee morale and quality of products or services. Six Sigma quality is a term generally used to indicate that a process is well controlled (±6 s from the centerline in a control chart)" (American Society for Quality, n.d., Glossary). Six Sigma quality performance means no more than 3.4 defects per million opportunities (American Society for Quality, Six Sigma Overview).

Statistical Quality Control (SQC): "The application of statistical techniques to control quality" (American Society for Quality, n.d., Glossary).

Strategic Management: A company roadmap for capturing and maintaining competitive advantage by determining the broader concepts of mission, goals, and long and short-term objectives; and by defining and managing the more specific details of analysis, decision-making, actions, roles, responsibilities, and timelines.

Strategy: "The science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war; a careful plan or method; the art of devising or employing plans or stratagems toward a goal" (Merriam-Webster's collegiate dictionary, 2000).

Sustainable Society: A society which meets current environmental, economic, and community needs without compromising those needs in the future.

Bibliography

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Suggested Reading

Brown, C.B., Collins, T.R., & McCombs, E.L. (2006). Transformation from batch to lean manufacturing: The performance issues. Engineering Management Journal, 18, 2–13. Retrieved July 10, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=21974911&site=ehost-live

Geng, H. (2015). Manufacturing engineering handbook. New York, NY: McGraw-Hill.

Lynes, J. & Dredge, D. (2006). Going green: Motivations for environmental commitment in the airline industry. A case study of Scandinavian Airlines. Journal of Sustainable Tourism, 14, 116–138. Retrieved May 30, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20543297&site=ehost-live

Teresko, J. (2006). Staying ahead with machine tools and robots. Industry Week/IW, 255, 42–51. Retrieved July 23, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22234314&site=ehost-live

United States Government Accountability Office. (2006). Offshoring: U.S. semiconductor and software industries increasingly produce in China and India: GAO-06-423. Retrieved June 6, 2007 from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22327488&site=ehost-live

Weber, R. (2006). Lean is not little. Trailer/Body Builders, 47, 62–66. Retrieved June 4, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20344110&site=ehost-live