Reorganizing the Factory: Competing Through Cellular Manufacturing » (New Edition)

Reorganizing work processes into cells has helped many organizations streamline operations, shorten lead times, increase quality, and lower costs. Cellular manufacturing is a powerful concept that is simple to understand; however, its ultimate success depends on deciding where cells fit into your organization, and then applying the know-how to design, implement and operate them.

Reorganizing the Factory presents a thoroughly researched and comprehensive "life cycle" approach to competing through cellular work organizations. It takes you from the basic cell concept and its benefits through the process of justifying, designing, implementing, operating, and improving this new type of work organization in offices and on the factory floor.

The book discusses many important technical dimensions, such as factory analysis, cell design, planning and control systems, and principles for lead time and inventory reduction. However, unique to the literature, it also covers in depth the numerous managerial issues that accompany organizing work into cells. In most implementations, performance measurement, compensation, education and training, employee involvement, and change management are critically important. These issues are often overlooked in the planning process, yet they can occupy more of the implementation time than do the technical aspects of cells. Includes:

• Why do cells improve lead time, quality, and cost?
• Planning for cell implementation
• Justifying the move to cells, strategically and economically
• Designing efficient manufacturing and office cells
• Selecting and training cell employees
• Compensation system for cell employees
• Performance and cost measurement
• Planning and control of materials and capacity
• Managing the change to cells
• Problems in designing, implementing, and operating cells
• Improving and adapting existing cells
• Structured frameworks and checklists to help analysis and decision-making
• Numerous examples of cells in various industries

	Preface	xi
	Acknowledgments	xiii
Section 1	Cellular Manufacturing--The Basics
Chapter 1	Competing through Cellular Manufacturing	3
	Cellular Manufacturing--A Platform for Improvement	4
	The Hard and Soft Sides of Cell Implementation	7
	Change Seeks Company	13
	The Organization of this Book	13
Chapter 2	A Closer Look at Cells: What They Are and the Forms They Take	17
	Formal Definitions of Cellular Manufacturing	17
	Four Perspectives on Cells	22
	Related Types of Production Units	26
	Operational Characteristics of Cells	30
	The Relationship of Cellular Manufacturing to Other Organizational Principles	37
Chapter 3	Why Cells Improve Performance	45
	Point of Departure for Performance Improvements	45
	The Sources of Cell Benefits	48
	Potential Disadvantages of Cells	60
	Determining the Suitability of Cells	63
Section 2	Adopting and Designing Cells
Chapter 4	The Planning and Implementation of Cellular Manufacturing Systems	71
	The Planning and Implementation Process at a Glance	71
	A 13-Step Blueprint for Your Planning Process--The Details	74
Chapter 5	Factory Planning	95
	An Overview of Factory Planning	95
	Confirming the Course	99
	Understanding the Current Situation	100
	Identifying Opportunities for Product Focus	112
	Identifying Opportunities for Cells	116
	Issues in Cell Design	131
	Designing a New Factory Layout	137
	Modifying the Infrastructure	143
Chapter 6	Detailed Planning--One Cell at a Time	147
	Project Organization	147
	Which Cell First?	148
	Detailed Cell Planning--An Overview	151
Planning Block 1	Cell Formation and Dimensioning	151
Planning Block 2	Management Systems	156
Planning Block 3	Employee, Layout, and Start-Up Issues	157
	Cell Dimensioning Revisited	167
	Dilemmas in Cell Design and Layout	172
Chapter 7	Understanding Cell Performance Using Modeling	181
	Models and Cell Design	181
	What Is Manufacturing Lead Time?	182
	Elementary Queuing Theory	185
	Reducing Manufacturing Lead Time	189
	Special Problems in Designing and Operating Cells	193
	Queuing and Simulation Models--An Overview	208
	The Value of Models and Modeling	215
Chapter 8	Determining the Economic Value of Cells	221
	Strategic versus Economic Justifications	222
	How to Cost-Justify Cells	224
	Estimating the Costs and Benefits of Cellular Manufacturing	226
	Discount Rates and Tax Considerations	232
	Tangible and Intangible Costs and Benefits	236
	Justifying Cells "After the Fact"	238
	Some Practical Issues in Justifications	240
Section 3	Designing the Cell System Infrastructure
Chapter 9	Performance Measurement for Cells	249
	What Is a Performance Measurement System?	250
	How to Generate Performance Measures	253
	How to Evaluate and Present Performance Measures	257
	The Process Performance Measurement Matrix	266
	Measuring the Performance of Cells at Turner Products	273
Chapter 10	Cost Accounting and Cellular Manufacturing	281
	Standard Costing Systems and Process Improvement--Are They Compatible?	282
	How to Modify Your Costing System for Cellular Manufacturing	291
	A "New" Cost Accounting System for Cells	307
Chapter 11	Manufacturing Planning and Control Systems for Cells	311
	An Overview of Changes to MPC Practices Driven by Cell Adoption	312
	MRP/ERP Systems	313
	MPC Modifications Driven by Cells--Product Structures and Planning Horizon	314
	MPC Modifications Driven by Cells--Capacity Management	318
	MPC Modifications Driven by Cells--The Shop Floor Control System	323
	MPC Modifications Driven by Cells--Controlling Material Flow through Pull Systems	329
	Planning and Controlling Supplier Orders	347
	MPC Modifications Driven by Cells--Lot-Sizing and Transfer Batching	349
	MPC Modifications Driven by Cells--Product Sequencing	352
	Choosing an MPC System for a Cellular Work Organization	358
	Facilitating Planning and Control by Reducing Complexity	365
Chapter 12	Job Design and Daily Work in Manufacturing Cells	369
	What Work Is Like in Cells	369
	Do Jobs Change Automatically When You Implement Cells?	373
	What Is Job Design?	374
	Cell Work Characteristics	375
	A Decision Framework for Cell Job Design	381
	Cells and Teams	389
	Supervision in Cell Systems	393
Chapter 13	Selecting and Training Cell Employees	401
	Why Selection and Training Are Different with Cells	401
	Selecting Cell Employees	402
	Selecting Cell Supervisors and Cell Leaders	419
	Training Cell Operators, Leaders, and Supervisors	424
Chapter 14	Compensation Systems for Cell Employees	437
	Goals and Characteristics of an Ideal Cell Compensation System	438
	Understanding Pay and Pay Systems	442
	Compensation Systems Providing Regular Pay	444
	Compensation Systems Providing Bonus Pay	453
	Cell Compensation in Practice: Combining Pay Systems	460
	An Ideal Cell Compensation System	464
	Issues in Adopting and Implementing Compensation Systems for Cell Employees	465
	Non-Monetary Rewards and Recognition	468
Section 4	Implementing and Improving Cells
Chapter 15	Planning for Cell Implementation and Managing the Change	475
	Planning for Cells in an Electronics Assembly Plant	475
	Managing the Transition to Cells	480
	The Role of Project Management in Cell Implementations	491
Chapter 16	Common Problems in the Design, Justification, Implementation, and Operation of Cells	513
	Common Cell Design and Justification Problems	514
	Common Problems in the Implementation of Cells	523
	Common Problems During Cell Operation	529
Chapter 17	Improvement and Evolution of Cells	541
	What Is Improvement?	541
	Cells: An Ideal Setting for Continuous Process Improvement	548
	Some Specific Strategies for Improving Cell Processes	551
	Building a Culture of Continuous Improvement in Cells	557
	Beyond Continuous Improvement--The Forces of Cell Evolution	560
Section 5	Extending the Concept--Cells in the Office
Chapter 18	Reorganizing Office Work Using Cellular Principles	573
	Office Operations--The Information Factory	574
	What Are Office Cells?	579
	Benefits of Office Cells	587
	Potential Disadvantages of Office Cells	593
	An Eight-Step Process for Designing Office Cells	594
	14 Principles for Designing and Operating Office Cells	604
	Making Office Cells Work: Infrastructure Issues and Other Key Challenges	610
Section 6	What's Next?
Chapter 19	Future Changes and Challenges	621
	A Brief Review	621
	Cells in 2020: A Platform for Competitive Manufacturing	622
	Gray Areas: Where We Need to Know More	627
	Final Words	628
	Appendices
Appendix A	Using Standard Cost per Piece Data to Justify Cells	629
Appendix B	How to Make Effective Presentations to Management	633
Appendix C	Measurement Checklist	635
Appendix D	A Primer on Accounting Systems	637
Appendix E	Family Sequencing Procedures	647
Appendix F	Job Enlargement and Job Enrichment	655
Appendix G	Tips for Effective Cell Employee Selection Interviews	661
Appendix H	A Sample of Courses Focused on Basic Cell Concepts, Interpersonal and Problem-Solving Skills, and Coaching and Facilitation	663
Appendix I	One Company's Organizational Change Structure	669
Appendix J	Process Improvement Opportunity Checklist from a Large Electronics Plant	673
Appendix K	Guidelines for Implementing Setup Time Reduction	677
Appendix L	A Primer on Functional Flow Charts and Tagging	681
	Endnotes	687
	References	723
	Index	739