Operational risk management in high-mix, low-volume production

Abstract. The objective of this Master’s thesis is to study operational risk management in High-Mix, Low-Volume production, with a focus on small and medium-sized enterprises. This objective is achieved through answering three research questions regarding previous literature, current state in a case company, and improving practises in the case company. This thesis is conducted as a qualitative research utilizing a literature review and a single case study. The literature review is utilized to form the theoretical foundation for the thesis, and to answer the first research question, providing the state of previous literature. The case study is utilized to obtain the current state in the case company, which answers the second research question. Case study data includes documentary data, observations, and interviews. Three semi-structured interviews were conducted, and the observations were obtained with participatory observing. The third research question is answered by comparing the empirical study and literature to provide improvement recommendations to the case company. The findings of this study include the empirical results of operational risk management in a single case example, as well as the proposed improvements for the case company. The empirical observations are described in detail, and guidance for future studies is given. The development proposals are directly applicable to the case company and are expected to result in a higher operational risk management capability. The literature review and empirical observations may be useful to other researchers or organizations, but the recommendations have limited generalizability outside the case company. However, some of the recommendations might be applicable to a company with similar practises or organizational context.Operatiivisten riskien hallinta korkean vaihtuvuuden ja matalan volyymin tuotantoympäristöissä. Tiivistelmä. Tämän diplomityön tavoitteena on tutkia operatiivisten riskien hallintaa korkean vaihtuvuuden ja matalan volyymin (High-Mix, Low-Volume) tuotantoympäristöissä, pienissä ja keskisuurissa yrityksissä. Työn tavoite saavutetaan vastaamalla kolmeen tutkimuskysymykseen liittyen aiempaan kirjallisuuteen, case-yrityksen nykytilaan ja case-yrityksen toiminnan parantamiseen. Diplomityö toteutetaan laadullisena tutkimuksena, jossa hyödynnetään kirjallisuuskatsausta ja case-tutkimusta. Kirjallisuuskatsaus muodostaa tutkimuksen teoreettisen viitekehyksen ja vastaa ensimmäiseen tutkimuskysymykseen esittelemällä aiempaa tutkimusta. Case-tutkimusta hyödynnetään case-yrityksen nykytilan kuvaamiseen, mikä antaa vastauksen toiseen tutkimuskysymykseen. Case-tutkimuksen aineisto koostuu case-yrityksen riskienhallintaan liittyvistä dokumenteista, havainnoista ja haastatteluista. Tutkimuksen osana suoritettiin kolme puolistrukturoitua haastattelua ja havainnot kerättiin osallistuvalla havainnoinnilla. Kolmanteen tutkimuskysymykseen vastataan empiirisen tutkimuksen ja kirjallisuuden vertailulla, jonka tuloksena saadaan ehdotuksia case-yrityksen toiminnan parantamiseen. Tutkimuksen tuloksia ovat empiiriset havainnot yksittäisestä case-yrityksestä sekä parannusehdotukset case-yrityksen operatiivisten riskien hallintaan. Tarkkaan kuvattujen empiiristen havaintojen lisäksi työssä ohjeistetaan aiheeseen liittyvää jatkotutkimusta. Annetut parannusehdotukset ovat suoraan sovellettavissa case-yritykseen ja niiden odotetaan johtavan korkeampaan operatiivisten riskien hallinnan kyvykkyyteen. Toiset organisaatiot ja tutkimukset voivat hyötyä kirjallisuuskatsauksesta ja empiirisistä havainnoista, mutta parannusehdotuksilla on rajallinen yleistettävyys case-yrityksen ulkopuolelle. Jotkin parannusehdotukset voivat kuitenkin olla sovellettavissa yrityksiin, joilla on samankaltaisia käytänteitä tai piirteitä

The application of lean manufacturing principles in a high mix low volume environment

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2005.Includes bibliographical references (p. 71).This thesis studies the opportunities for the application of lean manufacturing tools in a high- mix, low-volume traditional manufacturing factory floor setting. Value stream mapping and associated analytical tools are used to explore the opportunities to streamline the flow of products on the floor with a focus on reducing inventory and improving quality. To complement the analysis, this thesis also examines the impact of improved floor employee involvement. It considers several aspects including the increased empowerment of the direct labor staff, stronger team participation, and a greater focus on solutions specifically tailored to area. Based on the results of the research, the recommendation is an increased focus on developing team skills and empowerment, specifically within the direct labor staff.by Amber N. Dudley.S.M.M.B.A

Applicability of lean manufacturing and quick response manufacturing in a high-mix low-volume environment

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004.Includes bibliographical references (p. 66).As today's manufacturers face increasing pressure to improve costs and compete globally, many are turning to the philosophy of Lean Manufacturing as exemplified by the Toyota Production System. Lean is most successful when production is characterized by a few high-volume products, but may not be the answer as the production mix increases and volume decreases. This thesis focuses on this high-mix, low-volume type of production in addition to two other key production system characteristics: demand variability and degree of customization. A manufacturer's position along these four characteristics is very important to the applicability of Lean theory. The alternative philosophy of Quick Response Manufacturing (QRM) is compared to Lean and shown to offer a better fit in some cases. One such case where Lean does not fit neatly is circuit card assembly at Raytheon Systems Limited in Glenrothes, Scotland, where the author conducted his six-month LFM internship. Five steps towards manufacturing improvement are focused on in this thesis: choosing metrics, reorganizing the factory, selecting lot sizes, implementing a production control strategy, and deciding on a material presentation method. The recommended steps to improve circuit card assembly include ideas from both Lean and QRM. This mix of ideas was implemented at Raytheon before the end of the internship and resulted in marked improvement. On-time delivery and customer satisfaction dramatically improved while lead times and inventories dropped significantly. Using Lean Manufacturing as the sole guideline for improvement was not appropriate for this particular manufacturing system. The final takeaway from the internship and thesis is that there is no one-size-fits-all manufacturing philosophy.by Matthew J. Joing.S.M.M.B.A

High-mix, low-volume lean manufacturing implementation and lot size optimization at an aerospace OEM

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; and, (S.M.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2003.This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections.Includes bibliographical references (p. 97-103).by Jonathan M. Rheaume.S.M

Models to evaluate the performance of high-mix low-volume manual or semi-automatic assembly lines

To address mass customisation demand trends, assembly line flexibility and productivity are critical. Industry 4.0 technologies could support assembly operations to this end. However, clear implementation methodologies are still lacking. This article presents two models for evaluating the most relevant Key Performance Indicators (KPIs) of manual or semi-automatic assembly lines, allowing to maximise the return of investment of any digital technology addition. MATLAB® was used to implement a parametric model, and FlexSim® was employed to build a discrete event simulation model. The models were validated using data of two industrial study cases from a global white goods manufacturer

A Survey of Smart Manufacturing for High-Mix Low-Volume Production in Defense and Aerospace Industries

Defense and aerospace industries usually possess unique high-mix low-volume production characteristics. This uniqueness generally calls for prohibitive production costs and long production lead-time. One of the major trends in advanced, smart manufacturing is to be more responsive and better readiness while ensuring the same or higher production quality and lower cost. This study reviews the state-of-the-art manufacturing technologies to solve these issues and previews two levels of flexibility, i.e., system and process, that could potentially reduce the costs while increasing the production volume in such a scenario. The main contribution of the work includes an assessment of the current solutions for HMLV scenarios, especially within the defense of aerospace sectors, and a survey of the current and potential future practices focusing on smart production process planning and flexible assembly plan driven by emerging techniques

Computer-Aided Assembly Sequence Planning for High-Mix Low-Volume Products in the Electronic Appliances Industry

Electronic appliance manufacturers are facing the challenge of frequent product orders. Based on each product order, the assembly process and workstations need to be planned. An essential part of the assembly planning is defining the assembly sequence, considering the mechanical product’s design, and handling of the product’s components. The assembly sequence determines the order of processes for each workstation, the overall layout, and thereby time and cost. Currently, the assembly sequence is decided by industrial engineers through a manual approach that is time-consuming, complex, and requires technical expertise. To reduce the industrial engineers’ manual effort, a Computer-Aided Assembly Sequence Planning (CAASP) system is proposed in this paper. It compromises the components for a comprehensive system that aims to be applied practically. The system uses Computer-Aided Design (CAD) files to derive Liaison and Interference Matrices that represent a mathematical relationship between parts. Subsequently, an adapted Ant Colony Optimization Algorithm generates an optimized assembly sequence based on these relationships. Through a web browser-based application, the user can upload files and interact with the system. The system is conceptualized and validated using the CAD file of an electric motor example product. The results are discussed, and future work is outlined