XXXIII AIM Conference: Skopje (22 -25 September, 2011) Enterprise Restructuring/Improvement - Introduction Prof. Delcho Jovanoski Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
FOCUS of the conference: Discussions/ideas from Grenoble • • • Prof. . Jensen: Kochar: Fahrni: Meier: Deuse: education sustainability of the changes continuous restructuring production – not financial issues research (of course: the colleagues have not thought that a single focus excludes the others!) Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Continuous restructuring … there is at least one point in the history of a company when dramatic changes should be made in order to achieve a next level of performance. … (former Intel manager) (not one point; there are many!) Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Division of Industrial Engineering and Management: Activities Education • Manufacturing • • • systems Operations research Management Project Management Product Development Work Study Management of Technology Entrepreneurship and Small Business Modeling and Simulation. . . Research • Methodology for • • Enterprise Restructuring CAPP IS Technical Investment Planning Organizational Design Capacity Planning HRM PPC. . . Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M - Applied Projects • Enterprise • • • Restructuring Factory Planning Implementation of New Technologies Continuous Improvement Investment Planning Business Start-Up Quality Management Logistics and SCM Process optimization. . .
Enterprise Restructuring: COMPASS (COmpany’s Management Purpose ASSistance) Partner institution: Fraunhofer Institute für Produktionstechnik und Automatisierung (IPA) Customer demands Top management Strategy Goals of the strategy GAP ANALYSIS I/P MATRIXES ß consistency of the strategy goals and the performance measures Insight in theenterprise doing Analysis Benchmarking Performance Measurement Actions for improvement of the situation PERFORMANCE MEASUREMENT SISTEM Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Enterprise Restructuring – COMPASS: from a single organizational/functional unit to the whole enterprise and from a single KE to the bunch of KE Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
I-P matrix: portfolio (for only two key elements for success) Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Scenarios … C A B D 1 Costs 2 E 3 F improvement more than 10% 4 G H I 5 6 9 J 10 13 15 improvement more than 10% 8 12 11 14 improvement less than 10% 7 16 improvement less than 10% improvement more than 10% Critical Factor 3 improvement less than 10% improvement more than 10% Critical Factor 4 Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering improvement less than 10% Critical Factor 1 improvement more than 10% Critical Factor 2 improvement less than 10%
RESTRUCTURING OF A COUNTRY: National strategy for sustainable development of R. Macedonia (Partner institution: SIDA, Sweden) Hundreds of projects for sustainable improvement of the whole economy Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Production – not Finance: actually all functions! Cooperations (in development, sales, purchasing, …) Strategies (followed and planned) SWOT of the company Measures from Controlling Benchmarking of economic performance measures Personnel Product spectrum and development Manufacturing organization (manufacturing, assembly, maintenance, quality management, sales, PPC, transport, warehouses, . . . ) Purchasing Know-how . . . Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Strategic Planning Partner institution: Fraunhofer Institute für Produktionstechnik und Automatisierung (IPA) Ø Approaching new markets Development of new products Production organization analysis Lower Costs Ø Ø Planned strategies Ø Ø Ø Ø Ø CIM Product standardization Reduction of the manufacturing depth Reduction of the hierarchical level Quality management, certificate Organizational forms (e. g. profit centers) Derived demands/measures versus the competition, management deficit, know how Self -assessment of the weaknesses in lead times, costs Product mix Lack of personnel in sales High delivery readiness s Ø Ø Ø Ø Development of marketing and other activities Quality management, certificate Organizational forms (e. g. profit centers) Product standardization Lead times reduction Development of cooperation Cleaning of the product mix Improvement of the Employee qualifications KAIZEN/CIM Big number of products Ø Ø High quality Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M - Ø Ø Reduction of the hierarchical levels Reduction of the manufacturing depth A utomation Computer integration, CIM High priority Strategies Middle priority Ø Ø Ø Goals Low priority Followed strategies
Product development Share of revenue and costs 50 50 Costs share 45 40 Revenue share 40 Revenue in % 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 1. group of products 2. group 3. group 4. group of products Development and Design Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Actions for different product groups Income shares % Product group 2 Product group 1 40 Increasing Income shares Cleaning of the product mix 30 Marketing activities ! (new products which make Income are needed) 20 Product group 4 10 Product group 3 0, 35 0, 7 Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering 1, 05 1, 4 Cost shares / Income shares
Restructuring strategy for company Y Partner institution: SINTEF, Norway Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Fractal Company Approach Nr. PRODUCTION PHASE CONCEPTS OF THE FRACTALS I 1 2 3 Entrance control Warehousing Material preparation (sheet metal, plastic isolation) 4 II 1 1 Forming of package (cutting through, packaging, isolation) 2 2 5 Casting of the plastic parts 3 3 6 Casting of the nonferrous metal parts 4 III 4 7 8 Metal cutting and forming Pre-assembling 6 5 7 8 9 1 + cutting through V 1 1 10 9 2 2 3 3 4 7 2 3 5 6 IV 4 4 5 8 6 7 5 6 7 9 10 11 Final-assembling Inspection Packing 12 Warehousing and delivery 10 10 8 8 8 13 Quality management 11 11 9 9 9 Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M - 10
Layout Optimization Partner institution: SINTEF, Norway Store Lathe Saw Cutting Pres 6 Drill Bending Saw Manual br. Final product Assembly store Bending Cutter tool Press Bendin g tubes Product I Painting Welding Area Sheet metal Sheet store (as a separate fractal ) WELDING Electrostatic painting Assembly Product II Store for finished products Kiln STORE Pain t sho p Assemb ly Stor e Bend. ASSEMB LY WELDI NG Cut SA W Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M - Ben d. ng OFFICE AREA PROPOSAL 5 A BB P P D S MIL L L SA W stor e
TEMPUS-Project: Quality Management at Universities in Macedonia Partner institution: Vienna University of Technology and Fraunhofer Institut für Produktionstechnik und Automatisierung (IPA) Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Pre- and Post-calculation Partner institution: SINTEF, Norway Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
University Ss Cyril and Methodius Business Start-up Centre Partner institution: ADA, Austria • Dissemination of the entrepreneurial spirit among the students • Entrepreneurial training • Development of business plans • Support of the established companies Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Project proposal for Sustainable development of SMEs Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
Some of the Problem areas PROBLEM AREA POSSIBLE OUTPUTS Development of new, competitive products - New, competitive product (in case of simpler products) - Concept of new, competitive product (in case of more complex products) Costs reduction - Reduced costs in the enterprise through o Optimized inventory o Transport minimization o Elimination of non-value added activities, etc. - Developed and implemented system for pre- and post-calculation (of product costs) Quality improvement - Implemented QMS in accordance to ISO 9001: 2000 in the company - Certified QMS in accordance to ISO 9001: 2000 in the company - Implemented SPC - Reduced scrap Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Expert forums – dedicated to the restructuring/improvement officials from the Government experts from the university community (from many countries) experts from the industry and services (domestic but also foreign ones) experts from the Macedonian Academy of Science and Art experts from national agencies experts from international institutions chambers of commerce labour unions donors for projects (SIDA, GTZ, ADA, JICA, USAID, , Embassies, . . . ) association of the municipalities some companies ”Champions” students Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Presentations today: Examples from projects Prof. Fahrni: Prof. Santarek: Prof. Veža: Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering - Division of IE&M -
Thank you for your attention Ss. Cyril and Methodius University in Skopje Faculty of Mechanical Engineering
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