Back to Basics: Your Guide to Manufacturing Excellence

213 Pages·2000·1.15 MB·English

by  R . T . Chris Christensen

Back
to
Basics
Your Guide to
Manufacturing
Excellence
STEVEN A. MELNYK
AND
R.T. “CHRIS” CHRISTENSEN
The St. Lucie Press/APICS Series on Resource Management
St. Lucie Press
Boca Raton • London
New York • Washington, D.C. Alexandria, Virginia
© 2000 by CRC Press LLC
Library of Congress Cataloging-in-Publication Data
Melnyk, Steven A.
Back to basics: your guide to manufacturing excellence / by Steven
A. Melnyk and R.T. “Chris” Christensen.
p. cm. — (St. Lucie Press/APICS series on resource management)
ISBN 1-57444-279-1 (alk. paper)
1. Production management. 2. Quality control.
3. Inventory control. I. Christensen, R.T. II. Title. III. Series.
TS155.M438 2000
658.5´62—dc21
99-059099
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© 2000 by CRC Press LLC
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© 2000 by CRC Press LLC
The Authors
Steven A. Melnyk, CPIM, is Professor of Operations Man-
agement at Michigan State University. His research inter-
ests include MRPII, supply chain management, metrics/
system measurement, time-based competition (TBC), and
environmentally responsible manufacturing (ERM). Steve
is the lead author of six books, Shop Floor Control (Dow
Jones-Irwin, 1985), Production Activity Control: A Practi-
cal Guide (Dow Jones-Irwin, 1987), Shop Floor Control:
Principles, Practices, and Case Studies (APICS, 1987), Com-
puter Integrated Manufacturing: A Source Book (APICS,
1990), Computer Integrated Manufacturing: Guidelines and Applications from
Industrial Leaders (Business One, 1992), and Operations Management: A Value
Driven Perspective (Irwin Press, 1996). He was also the editor of the first work
devoted entirely to the study of tooling in production and inventory control
(Grand Rapids APICS/Michigan State University, 1988).
Steve’s articles have appeared in such international and national journals
as the International Journal of Production Research, International Journal of
Operations and Production Research, Journal of Operations Management, Inter-
national Journal of Purchasing and Materials Management, and Production and
Inventory Management. Along with Dr. Handfield, he was co-editor of a
special issue of the Journal of Operations Management that dealt with theory-
driven empirical research. In 1995, Steve received a major grant from the
National Science Foundation to study environmentally conscious manufac-
turing (a joint grant between the Colleges of Business and Engineering at
Michigan State University). In addition, he sits on the editorial review board
for Production and Inventory Management and the International Journal of
Production Research. Steve is also the software editor for APICS: The Perfor-
mance Advantage, as well as the lead author on the monthly “Back to Basics”
column found in that magazine.
© 2000 by CRC Press LLC
Steve is a member of the Mid-Michigan Chapter of APICS and a past
Director of Publicity for Region XIV of APICS. He is also a member of the
Central Michigan Chapter of NAPM. Steve has spoken to various APICS and
NAPM groups at the international, national, and regional levels and was also
a member of the Delivery of Products and Services committee of the Certifi-
cation in Integrated Resource Management (CIRM) examination program
developed by APICS. He has consulted with over 60 companies, including the
American Red Cross, Tokheim, and General Motors. He has also taught
manufacturing principles to universities and firms located in Hungary, Po-
land, and Czechoslovakia as part of a consortium program developed by
Midwestern Universities. His contributions to the theory and practice of
production and inventory management were recognized in 1992 by the Grand
Rapids Chapter of APICS when they awarded him the Paul Berkobile Award.
In addition, in 1999, he was recognized as a Faculty Pioneer by ASPEN
Institute for his leading-edge work on integrating environmental concerns
into business practice.
Steve is listed in the 1995 to 1999 issues of Business Week: Guide to the Best
Business Schools as one of the ten outstanding faculty members of Michigan
State University’s MBA Program. He has also taught in Michigan State University’s
prestigious Advanced Management Program. Finally, he is in Who’s Who at the
Midwest, National for Education, National, and International levels.
R.T. “Chris” Christensen is the Director of Operations
Management programs at the University of Wisconsin-
Madison, School of Business, Executive Education. He is
responsible for all seminars and workshops dealing with
manufacturing management and maintenance manage-
ment at the Institute. Chris has over 25 years of industry
experience in progressively responsible line, staff, mana-
gerial, and executive positions in diverse manufacturing
environments. His corporate experience includes posi-
tions with Tenneco’s Walker Manufacturing, Johnson
Controls, Allis-Chalmers, and Harnischfeger Industries. Since joining Manage-
ment Institute in 1988, Chris has enhanced the production/operations pro-
gram area by developing timely state-of-the-art seminars that address current
issues and provide solutions to some of today’s most challenging problems in
manufacturing. He developed and teaches in the Maintenance Management
Certificate Series, the first university-sponsored maintenance series offered in
the U.S. He also provides consulting services and in-house training to compa-
nies expanding their horizons and implementing new manufacturing controls
to address millennium 2000 challenges.
© 2000 by CRC Press LLC
Chris is very active with professional and trade associations. He is a member
of APICS (American Production and Inventory Control Society) and currently
serves as chair of APICS CIRM (Certification in Integrated Resource Manage-
ment) module for DP&S (Designing Products and Services). He is a member
of WERC (Warehousing Education and Research Council), senior member of
SME (Society of Manufacturing Engineers), past board member of CMED
(Conference on Management and Executive Development), and past vice-
president education for APICS-Madison chapter. He serves on several univer-
sity committees, including the Wisconsin Extension Education Advisory Board
and is an elected representative to the statewide University Extension Council.
He is also an advisory board member of a regional food corporation.
Chris has authored numerous articles in professional association publica-
tions. He is co-author of the monthly column “Back to Basics” in the APICS
magazine and is a subject matter expert and co-author of APICS DP&S training
materials. He is a frequent speaker for many professional organizations and
University of Wisconsin groups. Chris holds a Bachelor of Business Adminis-
tration degree in Manufacturing Management and an MBA in Manufacturing
from the University of Wisconsin.
© 2000 by CRC Press LLC
Acknowledgments
This book (and the series on which it is based) is the result of the contributions
of several people and groups. We would like to acknowledge their contribu-
tions by thanking them publicly. We would like to extend our appreciation to
the American Production and Inventory Control Society (APICS), Phil Carter
of the Center for Applied Purchasing Studies (CAPS) of the National Associa-
tion of Purchasing Management, Jerry Bapst, William R. Wassweiler, Don
Franks, Ben Schussel, William (Bill) Jones, Nat Natarajan, John Llewellyn,
Carol Ptak, Richard (Dick) T. Smith, Gene Woolsey, Tim Hinds of Michigan
State University, and Randall Schaefer. We would also like to thank the numer-
ous readers of the column who have come to us with their comments and
suggestions for future topics. They have helped to develop and shape the
column and this book.
© 2000 by CRC Press LLC
Preface
The “Back to Basics” concept can be traced back to the 1996 APICS Interna-
tional Conference that took place in New Orleans, LA. At that time, one of the
authors, Steven A. Melnyk, was asked to do two presentations. One of these
presentations was on the advanced manufacturing topic of environmentally
responsible manufacturing, while the other was on the basics of the Internet for
production and inventory control personnel. The first topic, scheduled for a
room designed to hold over 400 people, was attended by less than 20 people.
The other, more basic topic was scheduled for the same room. It was packed to
overflowing. This difference in attendance was noted and shared with several
other speakers, one of whom, Bill Wassweiler, observed that the presentations
that dealt with basics tended to generate the greatest amount of attention and
interest. However, these types of presentations were often seen as being too
simple and elementary — everyone should know the basics. This discussion
was continued with the other author of this book, R.T. “Chris” Christensen,
who had noticed that questions of a basic nature become key elements in
discussions he has with business people in his executive seminars held at the
University of Wisconsin.
From these observations, a paradox began to emerge. The manufacturing
world was being shaped by such new developments as Enterprise Resource
Planning (ERP), computer simulation, and advanced planning systems. Yet,
these topics, while important, did not seem to generate the same high level of
enthusiasm as we were seeing for topics dealing with such basic concepts as part
numbering, capacity, processes, inventory accuracy, and bills of materials. This
paradox was explored with people attending the conference and others. What
began to emerge was an interesting picture of the knowledge base and of the
need for a series of articles dealing with the basics and their mastery.
Production and inventory control is an interesting field. It is an entry point
for many people as they enter the world of operations management, when they
are typically assigned to areas such as planning, scheduling, or inventory con-
trol. When they enter these fields, most find that they are challenged by the
© 2000 by CRC Press LLC
need to know and master the basics; however, mastering such basics is no
simple task. In many cases, it requires that they take extra courses (offered by
organizations such as APICS or by colleges or universities) or that they read
extensively on their own. Developing this mastery takes time, and often this
mastery comes through the “school of hard knocks” — mistakes are made and
people learn from their mistakes. This is not a very effective and efficient way
of learning. After a period of time, though, people do develop a mastery of the
basics, and at that point they are better able to appreciate the impact of such
new procedures as ERP or Collaborative Planning and Forecast Replenishment
(CPFR) or Vendor Managed Inventories (VMI). As soon as people get to this
point, they are most likely to be promoted, and their replacements are very
much like they were when they first entered the field — and the cycle is
repeated.
Something had to be done to break this cycle. There has been a great deal
of confusion about the basics. People want to have access to very focused
discussions on various elements comprising the basics, and providing such
exposure would be the major goal of a “Back to Basics” series. This was the
concept that was proposed to the publisher of the journal, APICS: The Perfor-
mance Advantage, who proposed a test run beginning in January 1997. The
initial response was enthusiastic, to say the least. From that response, a column
was born that has continued to grow until it is now one of the two most widely
read columns in the journal.
Premises Underlying “Back to Basics” Approach
This series of columns is based on a number of important and critical premises.
The first is that the columns have to be rigorous in their treatment of the basics
but also management oriented. This is the reason why the column is co-
authored by Steven A. Melnyk of Michigan State University and R.T. “Chris”
Christensen of the University of Wisconsin at Madison. Steven Melnyk is
primarily a researcher and teacher in the operations management area. His task
in the process is to ensure that the treatments are accurate, rigorous, and
sufficiently comprehensive. Complementing him is Chris Christensen, who
brings over 25 years of practical, real-world experience in manufacturing to his
current position in executive education. His role is to make sure that the
treatments of the topics are relevant to management.
The second premise underlying the series is that the authors will deal only
with the basics. This is not the place to look for information about such new
developments as ERP, advanced planning systems, or CPFR. Rather, this is the
place to find information about such issues as capacity, inventory, inventory
accuracy, part numbering, processes, problem solving, and general managerial
guidelines.
© 2000 by CRC Press LLC
The third premise is that mastery of the basics is critical to any success in
operations management. One cannot be expected to succeed in the complexity
of operations management without an understanding of the basics. Further,
this treatment of the basics should cover not only the basics but also the
subtleties of the basics.
The fourth premise is that these basics are applicable to anyone working in
operations management. They can be used by people working in manufactur-
ing or in hospitals or in a bank. The context may be different, but the basics
remain the same.
Finally, it was assumed that exposure to the basics should be managed
through the use of “bite-size” treatments. That is, each treatment should be
information dense and not require that the reader devote a great deal of time
and effort. This last premise has shaped the resulting structure of the articles.
Structure of the Articles
Each section found in this book (and each “Back to Basics” column) is designed
to run between 1000 and 1500 words. This length, it has been found, is just
about right. It allows sufficient development of the topic being discussed but is
short enough to be read quickly. Such a structure forces the articles to deal with
the basics in the most direct way. There is little room for “fluff.” Further, each
article is designed to be self-contained. That is, when you finish reading an
article, you have been introduced to a set of critical issues and concepts. Each
article has everything that you need to understand the issues and to appreciate
their implications.
© 2000 by CRC Press LLC