March 1997, Volume 14, No. 3 Technology Takes Back Seat to Productivity

We'll let the trade journals tell you all about the hardware and software products introduced at the show, and focus our attention instead on what manufacturers are actually doing with the systems they have in place. Technology in and of itself, after all, is just another buzzword consultants like to bandy about; for manufacturers, a more pressing concern is productivity.

For instance, we've written extensively here in this newsletter about manufacturing execution systems (MES); at National Manufacturing Week we were afforded an opportunity to learn first-hand how one major manufacturer implemented such a system. Ford Motor's Andy Kopp and Tom Allen used an object-oriented approach to implement an MES at a prototype manufacturing operation.

A question every manufacturing manager needs to ask before undertaking any kind of technological innovation is: What does this technology enable us to do that we couldn't do before?

According to Kopp and Allen, "The system was implemented using a real-time object-oriented operating environment running on an engineering workstation. Object classes were constructed to model the devices in the cell. Gateways converted the disparate protocols into a common protocol. The gateway software also acted as a wrapper interfacing the legacy control software to the object-oriented system. The system includes an icon-based interface that a broad range of users (engineers, technicians, supervisors) typically are able to use with no training."

This system took only three man-years to implement, a much shorter time than expected. Debugging also proceeded much faster than usual thanks to the object-oriented approach. Kopp and Allen see few downsides to this type of implementation, and predict that "use of this technology in manufacturing will increase as the benefits become known." The chief benefit, they explained, is it will allow systems to be integrated without regard to the platform or implementation languages used.


What Can You Do that You Couldn't Before?
A question every manufacturing manager needs to ask him or herself before undertaking any kind of technological innovation is: What does this technology enable us to do that we couldn't before? According to David Caruso of Pivotpoint, manufacturers need to consider whether a new technology will only apply new computing paradigms to an existing process, or if it will actually lead to a definable business change.

"Lean and streamlined are often the watchwords here," Caruso noted. He briefly cited examples of key capabilities frequently sought out by manufacturers:

• Agile Manufacturing (Mass Customization). "Manufacturers are now looking for software that understands configured products and flexible line-oriented production. In addition to streamlined processes, manufacturers practicing these methods will also be looking for improved engineering and communications support."
  
• Kanban or Visual Control Systems. "A material-centric make-to-stock systems model (the classic MRP) will oftentimes create additional transaction overhead that may only slow down these newer styles of manufacturing. Look for designs that inherently start with these philosophies."
  
• ISO 9000. "Another area manufacturers are aggressively moving into is ISO 9000 certification [which] implies a tremendous amount of procedure documentation. This is most effective when both manufacturing data and ISO process data are incorporated into the same information systems, thereby institutionalizing the reference tools for the end user."

Keep the Customers Satisfied
Continuing the theme of looking before you leap into technology, Bob Turek with AT&T Solutions (and a frequent contributor to this newsletter) observed that "deploying technology in a way that creates value requires an understanding of technology and how it can enable changes in your business." In fact, in some situations, it might be possible to improve key business processes without any investment in technology whatsoever.

Turek explained, "The setting up of decision time fences within which certain authorization levels are required for changes to a master schedule could drastically improve the master scheduling process -- without an increase in technology. It is also possible to purchase a software system (technology) and never improve business processes (thereby resulting in an investment with a negative benefit." The secret to success, he said, is value system management, which requires a respect for technology and where it can take your company.

"Increasingly the winners and losers in the manufacturing world are being identified by their ability to bring products to market quickly and inexpensively," he continued. Networking technology -- concurrent engineering practices and product data management (PDM) systems combined with broad bandwidth networks -- will enable the establishment of virtual factories, Turek observed. Ultimately, though, successful manufacturers will empower themselves by analyzing their most highly valued customers and designing their value systems to service them.


Get Smart Before You Get Started
Before we put this topic to rest for this month, let's look at one more presentation from National Manufacturing Week. Expert Buying Systems' Dennis Dureno urged that manufacturers follow a few simple guidelines before jumping headfirst into installing a new system:

1. Get smart before you get started.
2. Short and sweet is usually better than fully complete.
3. You are investing in a company system, not a computer system.

"Don't buy a new system that looks like the old system," Dureno warned. "It sounds a little crazy, but it happens often. Without questioning whether each feature is being requested because it is truly needed or just because it mirrors the way things are done now, one runs the risk of having the specification for the new system bearing a strange resemblance to the one currently installed."

He recommended against letting "technology gurus" choose the new system; instead, look for functionality first and technology second.

Certainly there were plenty of manufacturing professionals at National Manufacturing Week who could qualify as "technology gurus," and were more than happy to pontificate about why their system of choice outdoes all the other gurus' systems of choice. The bottom line, though, which we hope this show review has illustrated, is that technology in and of itself is never the answer. Make sure you understand your company first, before you try to understand the latest computer wizardry.