Reorganizing the Factory or Executive Coaching

Reorganizing the Factory: Competing Through Cellular Manufacturing

Author: Nancy Hyer

About the Authors

Nancy Lea Hyer is Associate Professor of Management at Vanderbilt University's Owen Graduate School of Management. Prior to joining Vanderbilt, Nancy was Operations Research Manager at Hewlett-Packard's Network Measurements Division. In that capacity she played a leadership role in cell education and worked with various HP teams in designing and implementing cell-based manufacturing. She has also worked with many other organizations on the same issues. Dr. Hyer earned her B. A. degree from University of Richmond and her MBA and Ph.D. from Indiana University.

Urban Wemmerlцv is the Kress Family Wisconsin Distinguished Professor at the School of Business, University of Wisconsin-Madison, where he directs the Erdman Center for Manufacturing and Technology Management. His teaching and research focus on cellular manufacturing, change management, and planning and control systems. Many of his over 80 publications are on the design and operation of cells. Dr. Wemmerlцv holds a B.S. in Business, an M.S. in Mechanical Engineering, a doctorate in Production Management (all from Lund University, Sweden), and an M.S. in IEOR (from the University of California-Berkeley). He is a Fellow of the Decision Sciences Institute and a certified fellow (CFPIM) of the American Production and Inventory Control Society.

What People Are Saying

Nallan C. Suresh
This is a well thought-out book based on years of research on implementation of manufacturing cells. The authors have brought the same level of rigor that they are known for in research circles towards writing this book for the benefit of practitioners. It is well-structured, and addresses all relevant design and implementation issues, as well as potential roadblocks in the application of cells. Most books on cells have a technical/tactical orientation, but this book also addresses strategic imperatives of the business, in terms of ultimately deriving competitive advantages in the market place through cellular factories and office reorganizations.
It clearly belongs on the bookshelf of every manufacturing manager interested in streamlining manufacturing operations and supply chains.
— Nallan Suresh, Professor SUNY-Buffalo

Shahrukh Irani
There is a new book, Reorganizing the Factory, that makes "Learning to See" and "Value Stream Mapping" dated! Reorganizing the Factory is a great hands-on book with hardly any fluff! Buy it, read it, and embark on your "lean journey.
— Shahrukh Irani, Associate Professor The Ohio State University

Michael Wayman
This is a must read for organizations who want to use Cellular Manufacturing to gain competitive advantage. In addition to "hard" cell design issues, the book focuses as well on the "soft" side of cells, which we have found to be the largest determinants of the success (or failure) of cells.
— Michael Wayman, General Manager-Steel Operations Ingersoll Cutting Tools

Masami Shimizu
This book is very comprehensive. Those who pursue a particular manufacturing strategy eventually face cellular manufacturing (CM) and must find a way to put that concept into practice. Reading this book inspires manufacturing managers to visualize the type of CM they need and allows for a smoother implementation. Also, this book is different from other publications. Books on manufacturing strategies give us directions, and books on Kaizen provide tools. Yet, something is missing with respect to the reality of manufacturing management. This book serves as a perfect bridge for the missing link to make every corporate manufacturing strategy full-fledged and practically workable.
— Masami Shimizu, Deputy Director, Production Department Paper and Printing Machinery Division Mitsubishi Heavy Industries Ltd, Japan

Don Gogan
The book will serve as a field-guide for companies who are looking to increase thruput, decrease cost, reduce inventories and leadtimes. Many books I have read have merely touched upon the subject of cellular manufacturing, which on the surface appears to be an easy concept to grasp. However, as any brown field practitioner will tell you, cell implementation is destined for failure or mediocre results without an understanding of the cultural and systemic changes required to enable and sustain the gains. In Reorganizing the Factory, Hyer and Wemmerlцv have decoded the DNA of cellular manufacturing to ensure maximum results and sustainability.
— Don Gogan, Plant Manager Harley-Davidson Motor Company

Ronald Leong
Reorganizing the Factory is a great handbook for a manager either just starting to investigate cells or someone experienced with cells and looking to upgrade/enhance. It also addresses the "soft" side of implementing cells as well as the technical and logistical aspects. In addition, Hyer & Wemmerlцv discuss setting up office cells. Many companies don't realize the large potential benefits of going "cellular" in the office as well as on the manufacturing floor.
— Ronald Leong, Manager-Global Business Planning Delphi Automotive Systems

Table of Contents:

	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

Interesting textbook: Weekend Baker or The All New Atkins Advantage

Executive Coaching

Author: Richard R Kilburg

The unrelenting pace of business in modern organizations places constant pressure on employees, challenging the physical and emotional resources of both staff and supervisors. Consultants have become familiar with the survivalist mentality among workers, each struggling to improve production, solve intractable conflict, and chart realistic growth. Executive Coaching was written to help organizational consultants understand the chaotic processes and psychodynamic problems that influence executive behavior and performance. In engaging prose highlighted by substantial case illustrations, Kilburg examines organizational conflict and shows how methods and techniques developed in clinical settings can be applied to coach executives and management teams. Executive Coaching is an important read for consultants who wish to help executives develop human wisdom and to gain insight into the chaotic, "shadow" side of individual and organizational life.