THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing & Making Things Presented By: LaPortia...
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Transcript of THE GLOBAL PLANT FLOOR Planetary Ecosystems for Designing & Making Things Presented By: LaPortia...
THE GLOBAL PLANT THE GLOBAL PLANT FLOORFLOOR
Planetary Ecosystems for Planetary Ecosystems for Designing & Making ThingsDesigning & Making Things
Presented By:Presented By:LaPortia JamesLaPortia James
Jonathan CullumJonathan CullumKelly PowellKelly Powell
FAB LABFAB LAB
http://www.principalvoices.com/2007/http://www.principalvoices.com/2007/technology.innovation/video/neil.gershenfeld/technology.innovation/video/neil.gershenfeld/
Peer Production of Physical ThingsPeer Production of Physical Things
Adoption of Wikinomics: openness, Adoption of Wikinomics: openness, peering, sharing, and acting globalpeering, sharing, and acting global
End of multinational productionEnd of multinational production
Lower costsLower costs
Receding trade barriers allow for goods, Receding trade barriers allow for goods, knowledge, capital, and people to circulate knowledge, capital, and people to circulate freely in the marketfreely in the market
Out with the OLD, in with the NEW!Out with the OLD, in with the NEW!
Out withOut with:: National silosNational silos Insufficient knowledge transferInsufficient knowledge transfer
In withIn with:: Global resources and capabilitiesGlobal resources and capabilities Human capital across borders and Human capital across borders and
organizational boundariesorganizational boundaries
““The emerging globally integrated enterprise The emerging globally integrated enterprise fashions its strategy, its management, and fashions its strategy, its management, and its operations in pursuit of a new goal: the its operations in pursuit of a new goal: the integration of production and value integration of production and value delivery worldwide.”delivery worldwide.”
Sam Palmisano, IBM CEO and ChairSam Palmisano, IBM CEO and Chair
Managing the EcosystemManaging the Ecosystem
Partners
Customers
Suppliers
ExpertiseC
apab
ilitiesOp
erat
ion
s
Innovation…is more about orchestrating and coordinating good ideas.
China’s Motorcycle IndustryChina’s Motorcycle Industry
China’s motorcycle industry illustrates China’s motorcycle industry illustrates peer collaboration and production at its peer collaboration and production at its finestfinest
Their collaboration has led to competitive Their collaboration has led to competitive advantages by means of efficiency and advantages by means of efficiency and quality controlquality control
Motor cycle production has tripled since Motor cycle production has tripled since the mid 1990s in Chinathe mid 1990s in China
HistoryHistory
Yin Mingshan set up a motorcycle repair Yin Mingshan set up a motorcycle repair shop with 14 employees in Chongqingshop with 14 employees in Chongqing
That was over 14 years ago. Today, his That was over 14 years ago. Today, his company, Lifan, has 9,000 employeescompany, Lifan, has 9,000 employees
Lifan produces over 700,000 motorcycles Lifan produces over 700,000 motorcycles a year in 112 countriesa year in 112 countries
http://www.lifanmc.co.nz/
Future of LifanFuture of Lifan
Lifan plans to double its workforce to 20,000 in Lifan plans to double its workforce to 20,000 in five yearsfive years
Lifan wants to be a worldwide brandLifan wants to be a worldwide brand
Hopes to be instrumental in building up China’s Hopes to be instrumental in building up China’s automobile industryautomobile industry
Makes mid-size cars in Asia, Middle East, and Makes mid-size cars in Asia, Middle East, and CaribbeanCaribbean
The Lifan 520 has leather seats, air bags, a The Lifan 520 has leather seats, air bags, a spacious trunk, and a DVD system for $9,700spacious trunk, and a DVD system for $9,700
Peer ProductionPeer Production
Current thinking: Peer production can only Current thinking: Peer production can only be utilized to make information-based be utilized to make information-based goods (composed of bits, inexpensive to goods (composed of bits, inexpensive to make, and easily subdivided).make, and easily subdivided).
More people are beginning to believe that More people are beginning to believe that peer production can be applied to the peer production can be applied to the production of actual productsproduction of actual products
ModularModular
If products are made to be modular then, If products are made to be modular then, like Wikipedia, producers should be able like Wikipedia, producers should be able to add to and modify product components to add to and modify product components and designsand designs
Modular means consisting of Modular means consisting of interchangeable parts that can be interchangeable parts that can be swapped without hindering the swapped without hindering the performance of the productperformance of the product
CollaborationCollaboration
Chinese motorcycle producers collaborate on Chinese motorcycle producers collaborate on manufacturing and designs (hundreds of manufacturing and designs (hundreds of companies)companies)
In less than ten years, Honda, Suzuki, and In less than ten years, Honda, Suzuki, and Yamaha have lost 40% of their market to Yamaha have lost 40% of their market to Chinese firmsChinese firms
This seems to be proof that peer collaboration This seems to be proof that peer collaboration and production has been a successful approach and production has been a successful approach for the Chinese Motorcycle industryfor the Chinese Motorcycle industry
Other Reasons for Success in Other Reasons for Success in ChinaChina
China’s transition from communist central China’s transition from communist central planning to a market economyplanning to a market economy
Long history of making Japanese productsLong history of making Japanese products
Some argue that there is no real Some argue that there is no real innovation in China; they knocked off the innovation in China; they knocked off the Japanese's designJapanese's design
China has made reverse engineering more China has made reverse engineering more collaborative and organizedcollaborative and organized
China’s ApproachChina’s Approach
Loosely defined specifications to amend and Loosely defined specifications to amend and improve performance (this is usually achieved improve performance (this is usually achieved through collaboration with other suppliers)through collaboration with other suppliers)
Exchange of knowledge and skills among firmsExchange of knowledge and skills among firms
Face-to-face interaction encourages trust, and Face-to-face interaction encourages trust, and problem solvingproblem solving
Increased specializationIncreased specialization
This is referred to localized modularizationThis is referred to localized modularization
Risks to this ApproachRisks to this Approach
Gap in supply and demand caused by a Gap in supply and demand caused by a lack of coordination between suppliers and lack of coordination between suppliers and producers when gauging the marketproducers when gauging the market
Mismatched Parts- This can arise from a Mismatched Parts- This can arise from a lack of integrationlack of integration
Boeing’s ApproachBoeing’s Approach
Planes are composed of “Lego” parts Planes are composed of “Lego” parts made from many different manufacturersmade from many different manufacturers
Economic factors, including 9/11, caused Economic factors, including 9/11, caused Boeing to have to change the way it does Boeing to have to change the way it does businessbusiness
New approach, mass collaboration, to New approach, mass collaboration, to control costs and get new planes to control costs and get new planes to market more quicklymarket more quickly
Boeing ContinuedBoeing Continued
Participants design and build the aircraft in ways similar Participants design and build the aircraft in ways similar to those who built the Linux operating systemto those who built the Linux operating systemFrom this process came the 787 Dreamliner, From this process came the 787 Dreamliner, IMPORTANT FOR THE COMPANY’S SUCCESSIMPORTANT FOR THE COMPANY’S SUCCESSBuilt among hundreds of suppliers in six different Built among hundreds of suppliers in six different countriescountriesBoeing’s new model treats suppliers as partners and Boeing’s new model treats suppliers as partners and peers, and their involvement in the process begins much peers, and their involvement in the process begins much earlierearlierFuture passengers were also involved in the design Future passengers were also involved in the design processprocessThe final assembly process cut from 13-17 days to as The final assembly process cut from 13-17 days to as few as three daysfew as three days
Collaboration SystemCollaboration System
Boeing created a collaboration system called Boeing created a collaboration system called Global Collaborative EnvironmentGlobal Collaborative EnvironmentAllows for collaboration in respect to design and Allows for collaboration in respect to design and product life-cycle managementproduct life-cycle managementEngineer drawings and other important data can Engineer drawings and other important data can be accessed, reviewed, and revised using the be accessed, reviewed, and revised using the system by all partners all over the world. system by all partners all over the world. There is also a sophisticated virtual design There is also a sophisticated virtual design program, so suppliers can see how their parts program, so suppliers can see how their parts will act together in real situations (at this stage will act together in real situations (at this stage benefits and problems can be seen)benefits and problems can be seen)
RisksRisks
Some worry that Boeing’s sharing of Some worry that Boeing’s sharing of intellectual knowledge will cause them to intellectual knowledge will cause them to lose its engineering edgelose its engineering edge
““Leaky knowledge”Leaky knowledge”
MicromanageMicromanage
BMWBMW
German carmaker with a long-term German carmaker with a long-term reputation for quality car engineering.reputation for quality car engineering.
Large international company that has Large international company that has sales to people in many countries around sales to people in many countries around the world.the world.
BMWBMW
BMW undergoing a shift from an emphasis BMW undergoing a shift from an emphasis on mechanical engineering to perfecting on mechanical engineering to perfecting the driving experience.the driving experience.
BMW focusing on more collaboration with BMW focusing on more collaboration with their suppliers, and a shift to their their suppliers, and a shift to their suppliers doing more R&D, design suppliers doing more R&D, design building, and assembly of their cars.building, and assembly of their cars.
How BMW harnesses the Global plant floorHow BMW harnesses the Global plant floor
BMW estimates that 90% of its new BMW estimates that 90% of its new innovations will come in the fields of innovations will come in the fields of electronics and software.electronics and software.Suppliers already develop and build 65% Suppliers already develop and build 65% of new vehicles.of new vehicles.Many of BMW’s key innovations were from Many of BMW’s key innovations were from supplierssuppliers
Opportunities to explore: develop more Opportunities to explore: develop more customer co-creation using the internetcustomer co-creation using the internet
BMW Car ModelsBMW Car Models
528xi Sedan528xi Sedan 335i Sedan 335i Sedan M3 Sedan M3 Sedan
6 Series Convertible X5 xDrive486 Series Convertible X5 xDrive48 Z4 Roadster Z4 Roadster
BMW WebsiteBMW Website
http://www.bmw.com/
http://www.bmwusa.com/Default.aspx
BMW Efficient DynamicsBMW Efficient Dynamics
More driving pleasureMore driving pleasure
Less emissionsLess emissions
Hybrids/Clean energyHybrids/Clean energy
BMW – Efficient TechnologiesBMW – Efficient Technologies
The engines
Auto Start Stop function
Brake Energy Regeneration
Electric Power Steering Electric Power Steering
Air vent control Air vent control
Gear shift indicator Gear shift indicator
Tyres with reduced rolling resistance Tyres with reduced rolling resistance
SummarySummary
7 Lessons on how to harness the Global 7 Lessons on how to harness the Global Plant floor:Plant floor:1- Focus on the critical value drivers1- Focus on the critical value drivers
2- Add value through orchestration2- Add value through orchestration
3- Instill rapid, iterative design processes3- Instill rapid, iterative design processes
4- Harness modular architectures4- Harness modular architectures
5- Create a transparent & egalitarian ecosystem5- Create a transparent & egalitarian ecosystem
6- Share the costs and risks6- Share the costs and risks
7- Keep a keen futures watch7- Keep a keen futures watch