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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    Industrial Engineering

    1 LITERATURE ................................................................................................................. 2 2 CASE STUDY 1................................................................................................................ 2 3 DEFINITIONS ................................................................................................................. 3

    3.1 INDUSTRIAL ORGANIZATION ....................................................................................... 3 3.2 SYSTEMATIC OF INDUSTRIAL ENGINEERING................................................................ 4 3.3 FUNCTIONS OF IE IN ENTERPRISES .............................................................................. 5

    4 DOCUMENTATION OF A PRODUCT........................................................................ 5 5 ROUTING PLAN / MASTER ROUTE SHEET (FERTIGUNGSPLAN) ................... 6

    5.1 BUILDING OF ROUTING................................................................................................. 7

    6 CASE STUDY 2................................................................................................................ 9 6.1 CREATE A TEAM CHART FOR THIS TEAM .................................................................... 10 6.2 WHICH PRODUCT DOCUMENTATIONS ARE NEEDED FOR THE TRANSFER? ................... 11 6.3 DEFINE THE POTENTIAL STEPS FOR THE TRANSFER .................................................... 11 6.4 DEFINE A MILESTONE PLAN FOR THE TRANSFER ........................................................ 11 6.5 TRANSFER OF SPECIAL EQUIPMENT AND FIXTURES TO SIGNA .................................... 11

    7 METHODS TO FIND OUT STANDARD TIMES ..................................................... 12 7.1 STANDARD COST CALCULATION ................................................................................ 13

    8 WORK ORGANIZATION............................................................................................ 14 8.1 DIRECT DEPARTMENTS............................................................................................... 14 8.2 INDIRECT DEPARTMENTS ........................................................................................... 23

    9 MATERIAL MANAGEMENT..................................................................................... 24 10 ORDER PROCESSING AND PRODUCTION PLANNING & CONTROL (PPC)26

    10.1 TASKS, OBJECTIVES AND DEFINITION OF PPC........................................................... 26

    1/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    1 Literature

    - Manufacturing Handbook of Best Practices (Jack B. Revelle) - Arbeitswissenschaft (H. Luczak) - The Memory Jogger

    2 Case study 1 Due Dilligence Behrendson AB(GmbH)/Sweden goal:

    check of potential acquisition sign confidentiality agreement find recommendation to Senor Management ( YES or NO)

    Create a team that will try to achieve the goals. team functions:

    - finance - marketing - industrial engineering - sales - R & D

    topics, the industrial engineer has to deal with:

    - organization - new product development

    processes (NPD) - skills / training methods (of

    personal) - wages / incentives (Prmien) - lead times - personel (Shifts, employees,

    White-Collar-Workers[WCW], BCW)

    - maintenance - environment - safety standards

    - goals (production/department) - stock / warehouse - suppliers - production lines / products - work method(s) - quality / corrective actions - IT - equipment / tools / automatication - standard costs - outsourced productions - ratios (Kennzahlen )/ productivity - order processing - technical planning

    2/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    3 Definitions 3.1 Industrial Organization

    - describes a system of permanent regulations and input/output relations - determine the work of the operative and ensure function-fulfilment

    (Wiendall/Spur) Industrial Organization contains 2 items:

    structure organization work process organization

    3.1.1 Structure organization Arrangement and organizational structuring of enterprises/operations according to principles of division of labour and organizational units (work places, divisions) as well as their cooperation/communication and coordination processes

    (Birker)

    monolithic line organization specialization of functional areas

    P P

    staff line organization

    Management

    Sales R & D OperationsMarketing

    3/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    Matrix Organization Management

    SalesR & DOperations Marketing Admin

    ProductManager

    A

    ProductManager

    A

    Production

    Production

    A A A A A

    B B B B B

    3.1.2 Process organization Special and temporal arrangements of work functions along the supply and production chain within the operational structure. The process organization regulates the activities for execution of tasks

    (Birkel) 3.2 Systematic of Industrial Engineering six levels of analysis: 1st level: Enterprise/Company Macro level 2nd level: plant 3rd level: manufacturing area / planning area Meso level 4th level: work team 5th level: work place 6th level: job/function Micro level

    4/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    15.10.2003 3.3 Functions of IE in Enterprises

    IE

    Productioncontrol Production

    facilitieslayout

    Productionplanning

    Internallogisics

    Industrialmedicine R & D

    Industrialhyginie and

    safety

    purchase

    Qualityassurance

    manufacturing

    4 Documentation of a Product

    product documentation

    technical drawing bill of material (BOM) (Stckliste)

    numbering system

    - types: explosion drawing single part drawing component drawing

    - CAD program (Autocad X / Proengineering)

    - intellectual property of the company important to save (e.g. microfiches)

    - list of all the parts of a product

    - types: one level BOM structureBOM summarized BOM variant BOM

    -

    - identifying article number for every special product

    - e.g. SAP/R3

    5/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    5 Routing plan / master route sheet (Fertigungsplan)

    - order independent documentation of the manufacturing process - works for one level

    routing

    types structure content routing for:

    final assembly parts/components repair

    written as: full list or short list (abbreviations)

    top data : Art.-Nr. description of

    part/product Nr. editions

    (versions) lot size

    material data: Mat.-Nr. description of

    material units (kg,m, ) quantity

    production data

    process data working place standard times production facilities

    information

    6/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    5.1 building of routing IE: step1: make or buy decision (e.g. in house production or outsourcing or

    purchase supplier) step2: check

    drawings BOM Article-No. equipment working place quality (how to test)

    step3: think about

    lot sizes (5 or 50000 units/year) final production date (how long it will take to build up the production

    line?) service life of product

    step4: think about

    work study production technology (machines, programming of machines) organization

    step5: planning of similarities (maybe you can use similar technologies from other

    products) define processes planning of production equipment

    tools data from R&D (especially plastic, rubber need long time)

    fixtures (fest angebrachtes Zubehrteil) test equipment

    step6: cycle time definition

    standard times estimation(e.g. based on similarities) ask the worker Methods time measurement(MTM) (standard calculation)

    step7: planning of logistics step8: need of NC-programs (for numeric controlled machines)

    Routing plan

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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    standard time Time required by a average skilled operation, working at normal pace to perform a special task using a prescribed method allowing time for personal needs, fatigue(Ermdung) and delay.

    Standardtime

    Calculation(standard costs,Herstellungskosten(HK))

    data for wage payment

    data for employment evaluation

    data forline balancing

    data forline simulation

    data forstaffing

    working hours begin and end of work without any break 8:00 a.m. 15:30 p.m.

    1. organization (traditional working hours): 1 Shift 2 Shifts 3 Shifts

    2. flexible working hours

    part time job sharing yearly working hours capacity related working hours (work 10h/day if therere orders, stay

    home if not) German labour law working hours: 9h)

    8/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    29.10.2003 6 Case study 2 Transfer of production of printed circuit boards to Signa /Cz Situation:

    - Martin GmbH, Berlin wants to outsource the production and test of printed circuit boards (PCB) for the product program of Martin GmbH to Signa.

    - Martin has a program of 40 different PCB`s with yearly volume from 50 units/ year to 10 000 units/year.

    - The make or buy-analysis was done and the management decision was to outsource the production of PCB`s to Signa.

    Signa:

    - Specialized company for the production of PCB`s and test of PCB`s ATEX approved and certified ISO 9001:2000

    - State of the art insertion and test machines (SMD devices etc) - 3 shifts operation - Spray coating equipment for PCB`s - 50 employees, engineering department for PCB layouts - CAD system in use - Test adapters and test programs made by Signa

    Tasks:

    - The operations manager of the Martin GmbH has installed a team to manage the transfer.

    - Team members are engineers of R&D, Industrial Engineering, Production, Cost Accounting, Production Control and Purchase Department

    1. Create a team chart for this team 2. Which product documentations are needed for the transfer? 3. Define the potential steps for the transfer 4. Define a milestone plan for the transfer 5. Transfer of special equipment and fixtures to Signa

    9/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    6.1 Create a team chart for this team

    Transfer of production of printed circuit boards to SIGNA

    Mission Statement

    Transfer of production technology and necessary information of PCB-production to Signa, Czech Rep. enabling them to produce at same standards and output volume. Ensuring the right amount of PCBs in the right time, right location and right quality.

    Team Inputs

    Information of present production 1. Risk Management: Plan B 2. Analysis of PCB portfolio (40 types, ABC-distribution) 3. Information politics 4. Basic data (documentation) 5. capacity planning for the next 6 months 6. Check of SW-compatibility 7. Copy of Test-SW 8. Direct contact with sufficient language skills (interpreter necessary?) 9. Interfaces of processes 10. Decision: Who is supplier for components of PCBs? (Supply Chain

    Management) 11. Logistics: Transportation, delay due to customs, etc. 12. Outgoing or incoming quality tests?

    Team Goals & Outputs

    Project goals Project finish (production running 100% of present volume and quality)

    end of April 2004 Meet target costs

    Output: Documentation Project plan Validation of processes

    Team Members

    Team leader Team sponsor

    John Beschnidt Andreas Reichert Philipp Hartmann Heiko Boelter Haifeng Li Russell Sahusilawane Phillip Kern Florian Hieber

    Group Responsibilities

    Successful transfer within cost and time limit Guarantee the communication between teams Guarantee the sufficient supply of PCBs during transfer time and afterwards

    Timing

    1. Visit Signa plant 2. Documentation of processes (BOM, Routing Plan, test plans, etc.) 3. Define contacts 4. Feasibility study for emergency plan 5. Parallel production during transfer 6. Extended stock production (300%) 7. Pilot run

    10/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    6.2 Which product documentations are needed for the transfer? Product documentation necessary for transfer Product information Process information

    Drawings BOM Routing Plans without minutes Test plans Test adapters Special condition instruction

    (e.g. coating) Samples

    Agreed project schedule Agreed production schedule

    (transfer and rolling forecast) Supplier specifications (incl. names

    and prices) Electric circuit plans Quality history R&D experience

    6.3 Define the potential steps for the transfer

    Define the potential steps for the transfer (incl. milestones) 1. Analysis of portfolio (2 weeks) ABC-Matrix 2. Collect documentation and translation (6 8 weeks) Phase 1: Drawing,

    BOM, Routing, test sheets 3. Agree on schedules 4. Transfer of A-Runner PCB

    6.4 Define a milestone plan for the transfer s.a. (6.3) 6.5 Transfer of special equipment and fixtures to Signa Transfer of special equipment and fixtures to Signa

    1. know-how-transfer 2. disassembly of equipment 3. transportation 4. setup of equipment 5. test of equipment 6. know-how-transfer

    11/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    12.11.2003 7 methods to find out standard times

    actual data (from experience) estimated data time measurements ask the worker expert systems self documentation of time

    MTM (Methods time measurement) WF (Work Factor) Simulation

    12/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    7.1 standard cost calculation based on 100 units

    Labor burden: heating lighting depreciations

    (Abschreibungen) vacation social cost / pension rent/m cleaning maintenance production manager

    (partly) Quality managers Industrial Engineer

    labor cost(wages)

    labor burden(Fertigungsgemeinkosten)

    material cost

    material burden(Materialgemeinkosten)

    labor cost(wages)

    material cost

    variable cost

    standard costs

    material burden: warehouse cost incoming inspection shipping cost

    (Normally 10-15%)

    standard cost

    R&D

    Admin

    Sales/Marketing

    profit marginSales price

    (Price for customer)

    discountlist price

    product cost (for company)

    list price = standard cost * 3,x

    (Frank-Lynn-factor)

    intercompany pricing: standard cost + x% (for selling to a sister company)

    13/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    19.11.2003 8 work organization 8.1 direct departments

    - direct working on the product (assembly, testing, developing) - normally blue collar workers

    8.1.1 Measures in Work Structuring: Job Enlargement

    14/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.2 Measures in Work Structuring: Job Enrichment

    Problem: not all workers want to do that, they are insecure 8.1.3 Measures in Work Structuring: Job Rotation

    Advantage: more flexibility

    (in case of vacation/illness more workers can do the same work) Disadvantage: more qualification necessary

    15/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.4 Groups and Teams

    8.1.5 Quality Circles

    16/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.6 learning room

    17/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.7 workshop circle

    8.1.8 example from Packing Industry

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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.9 production cell

    8.1.10 lean production

    example for lean production see also 8.1.8 example from Packing Industry

    19/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.11 Organization of Team work

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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________ 21/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.1.12 Task: Introduce a work cell organization in production department

    1. information of shop council / Wirtschaftsausschu 2. Kick-Off meeting (start of the project)

    all involved people (workers, supervisors, management, ProductionControl, QualityControl, Shop Council, (+ Consultant))

    project team ( team leader industrial engineer production control finance supervisor (shop council member)

    3. next steps groups goals functional organization segmentation group work

    22/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    8.2 indirect departments

    - not directly working on the product (e.g. industrial engineer)

    Global steering teams: head and face protection

    - sales - market - R&D - production

    23/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    2004-01-14 9 material management supply chain:

    supplier production distribution sales customer

    production control

    material/goods/products flow

    information flow

    rolling forecast

    rolling forecast: based on:

    - sales statistics - market development - orders you already have

    normally done by sales department 2004 2005 Jan Feb March April Jan Feb product A 1000 1000 800 product B 500 500 400 product C 900 800 700 product D 800 900 you need this information to order from the supplier especially with respect to long delivery times

    24/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    supplier

    production

    warehouse customer

    forecast

    MRP

    SAP R/2

    inventory

    purchase orders

    production orders

    incoming inspectioncertificated

    supplier

    warehouse

    shipping dep.

    additional:

    25/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    10 Order processing and Production Planning & Control (PPC) 10.1 Tasks, Objectives and Definition of PPC 10.1.1 Order Processing, Production Planning & Control (PPC) and Enterprise

    Resource Planning

    10.1.2 Production, Planning & Control (PPC) Tasks and Objektives

    10.1.3

    26/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    PPC Tools, Models Y-Integration-Model:

    The Aachen Model of PPC:

    27/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    Task Reference View of the Aachen Model of PPC:

    Planning Levels of the Aachen Model:

    10.1.4

    28/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    Production Program Planning

    10.1.5 Forecast Methods for Sales Planning

    10.1.6

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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    ABC-Analysis

    10.1.7 Order Point Method and Order Rhythm Method

    30/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    10.1.8 optimal Lot sizes and order quantities

    10.1.9 Scheduling

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  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    If real delivery date is later penalty think of bottle necks in production, that can be optimized 10.1.10 methods of lead time reduction

    32/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    33/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    10.1.11 data management

    10.1.12 Push Principle and Pull Principle

    34/35

  • International Technology Transfer Management

    Industrial Engineering Dr. rer. nat. Dieter Lubkoll

    Wintersemester 2003/2004 Lecture Notes by Phillip Kern

    ___________________________________________________________________

    10.1.13 KANBAN

    10.1.14 Summary and Outlook

    35/35

    LiteratureCase study 1DefinitionsIndustrial OrganizationStructure organizationProcess organization

    Systematic of Industrial EngineeringFunctions of IE in Enterprises

    Documentation of a ProductRouting plan / master route sheet (Fertigungsplan)building of routing

    Case study 2Create a team chart for this teamWhich product documentations are needed for the transfer?Define the potential steps for the transferDefine a milestone plan for the transferTransfer of special equipment and fixtures to Signa

    methods to find out standard timesstandard cost calculation

    work organizationdirect departmentsMeasures in Work Structuring: Job EnlargementMeasures in Work Structuring: Job EnrichmentMeasures in Work Structuring: Job RotationGroups and TeamsQuality Circleslearning roomworkshop circleexample from Packing Industryproduction celllean productionOrganization of Team workTask: Introduce a work cell organization in production depar

    indirect departments

    material managementOrder processing and Production Planning & Control (PPC)Tasks, Objectives and Definition of PPCOrder Processing, Production Planning & Control (PPC) and EnProduction, Planning & Control (PPC) Tasks and ObjektivesPPC Tools, ModelsProduction Program PlanningForecast Methods for Sales PlanningABC-AnalysisOrder Point Method and Order Rhythm Methodoptimal Lot sizes and order quantitiesSchedulingmethods of lead time reductiondata managementPush Principle and Pull PrincipleKANBANSummary and Outlook