Production Management I

Transcription

1 Production Management I - Lecture 1 - Assistant Lecturer: Dipl.-Wirt.-Ing. Christoph Haag [email protected] Fraunhofer IPT, Steinbachstraße 17, Raum 243 Tel.: (02 41) L01 Page 0

2 Short summary of the lecture Industrial firms and business enterprises have always had to adjust to the changed conditions on the sales, procurement and job markets, as well as to new laws and regulations. This was accompanied by a paradigm shift and varying objectives and assessment standards. This change will continue and accelerate even. The globalization and the expansion of the European Union result in the fact that German companies are increasingly exposed to pricing pressure. Many companies attempt to maintain their market shares by adjusting their prices. However, you cannot win the price war despite far-reaching cost reductions since the decline in costs between the production location in Germany and the so-called low-wage countries is much too large. However, the solution for German companies is not fight a hopeless price war. Instead, they should concentrate on their innovative power and the development of excellent technical products in order to distinguish themselves from their competitors. Manufacturing innovative products and launching these on the market requires corresponding product, manufacturing and material technologies. The objective of technology management and the methods of technology management is to enable companies to manage their technology basis successfully, to focus their resources on the relevant technologies and developments purposefully and, finally, to market the products. The forecasting technology has the objective of recognizing relevant technological developments for the company and of assessing their effects on the company and its environment. The insights attained are used as the basis to decide which technologies used within the company must be rejected and which new technologies must be developed or acquired. The technology planning evaluates and concerns itself for instance with the fact how new technologies must be integrated in the company and at which point in time an integration and/or new development must take place. It is hereby critical that all activities consistently focus on one strategy. This necessitates the formulation of a»technology strategy«. In turn, the technology strategy must be aligned with the corporate strategy so that the objectives and activities, which are pursued within the technology management, correspond with the company s overall objectives. L01 Page 1

3 Table of Contents Introduction to Management Definition of and Technique Motivation for the Management of Challenges of Management of - and Competitive Strategy as guardrail for the Management of Process of Management of Forecasting Assessment Planning Usage page 2 L01 Page 2

4 Definition of and Technique includes Knowledge, facts and abilities for solving technical problems as well as Equipment and methods for the practical realization of scientific results Techniques are The material realization of a technology and Fraunhofer/Peter Bornemann (upper left) and Fraunhofer IPT (others) A subsystem of a technology Traditional Definition Technique Integrated Definition Technique source: Binder/Kantowsky 1996 page 3 L01 Page 3

5 Where do we encounter technologies in everyday life? source: Siemens Injection moulding tool for mobile phone cases - manufactured using Graphit SEDM and HSC Mobile Phone with Bluetooth Data Interface Technologies are everywhere yet not always visible page 4 L01 Page 4

6 Definition of Management of Brockhoff suggests that the interface between technologyand innovation management is the R&D-Management (right picture). Binder and Kantowsky have nearly the same perception (picture below). Technologiemanagement External Externer acquisition Erwerb of technologischen technological know-how Wissens Innovationsmanagement i.b.s. i.w.s Storage Speicherung and internal und interner acquisition ErwerbImplementation Implementation of technological know-how of a new productinnovation of an innovation insbesondere particular by durch R&DF&E Neuerung einer into einer the Neuerung market R&D-Management F&E- Externe External Utilisation utilisation of technologischen technological know-how Wissens Innovationsmanagementi.e.S i.c.s source: Brockhoff 1997 management TM Innovation management IM R&D-Management Overview Design Utilisation Design Utilisation Design Utilisation Design Utilisation Output Output Output Output R&D-M. IM TM source: Binder; Kantowsky 1996 page 5 Definition of technology management: Predominantly, any tasks of corporate management are understood to be strategic aspects of technology management. These tasks are intended to create and control technological and market-oriented success positions (Bullinger 1994). Subsequently, this also includes the determination of the technological actual situation of the company. This situation is quantitatively determined by key figures. Qualitative criteria, however, make it possible to distinguish the technology position of the company with regard to that of the employees. Additional partial tasks of the strategic technology management also include: - the recognition of technologies that relevant for the company and its business areas, - the classification of the pertinent technologies according to their lifecycle phase and their strategic significance. - the mastering of technologies with their high strategic significance, - the definition of technological competitive positions and strategies, - the direction of F&E and innovation processes to technologies pertinent to the competition, - the strategic input of technology attuned to other performance potentials of the company that are pertinent to the market and competition. Explanation of the illustration: The lower four illustrations depict the classification of technology management, innovation management and R&D management into a system that consists of four quadrants. This shows to what extent each management task deals with Desing and/or Utilization of Technologies and/or Outputs. L01 Page 5

7 What will be there the longest has to be carefully planned! Technologies generally have a longer lifecycle than products Technologies are less likely to be substituted quickly The company s competitive edge has a long-term effect Typical Lifecycles of Products, Production Equipment and Technologies 30 Jahre Turning Management of has to steer the build-up and the usage of technological competence in a company Shaft Lathe 0 Product Productionequipment (Principle) page 6 Comments on this slide: The fact that life cycles of technologies are times longer than the ones of products and production machinery can impose chances as well as threats to companies: Chances: - Competencies once built up sustain rather long (in comparison to products) - higher reliability for long-range planning - higher imitation barriers, as technology acquisition takes longer than product development Risks: - missed technological developments of competitors can not be easily compensated - Decision for a wrong technology wastes a lot of resources, adjustment and definition of a new direction is only feasible in long term Companies can actively influence, whether technological change means threats or chances. This is the core objective of technology management. L01 Page 6

8 Management of means Product technologies Material technologies Manufacturing technologies Forecasting Assessment Competitive Environment Business Area Company Corporate Strategy Planning Utilisation Acquisition Development Optmisation Transfer Products and Processes... to build up, use and protect technological capabilities and commercial potential!... to adapt the performance of technologies, products and processes to the corporate strategy! page 7 As visible in slide 5, an explicit classification/definition of technology management is extremely difficult. For this reason, this slide tries to provoke some thoughts and to link the variety of tasks and areas with possible goals of technology management. L01 Page 7

9 Inhalte der Vorlesung Introduction to Management Definition of and Technique Motivation for the Management of Challenges of Management of - and Competitive Strategy as guardrail for the Management of Process of Management of Forecasting Assessment Planning Usage page 8 L01 Page 8

10 Process of Management of Competitive Strategy»Market Pull«Forecasting Assessment Planning Usage» Push«Strategy page 9 Process of Management: The process of technology management is used for the operational realization of the goal of TM, which is to steer the buildup and the usage of the technological potential of a company. The proceeding in the process steps is determined by the two big influences competitive and technology strategy, which are derived from a superior corporate strategy. The process which is being described on the above slide represents on possible structuring of the proceeding for technology management. When executing the four steps Forecasting, -Assessment, -Planning and Usage, the number of involved technologies decreases with each step through a selection based on influences related to competitive and technology strategy. In a first step, all interesting technologies are searched, identified and screened, to be evaluated in the next step. Useful technologies are then integrated into the company s planning and, in the case of success, are put towards technology usage. Definition Market Pull and Push: see page 17 L01 Page 9

11 Options for the competitive strategy Strategic advantage Uniqueness from customer s view Cost advantage strategic aim Compelte market Limited on one market segment Differentiation - Features/ Quality - Uniqueness -Limited need -- Flexible price (concentration) Niche strategy Complete cost leadership - Price/ Cost - Standard products - specific need - unflexible price source: Porter 1997 page 10 Competitive strategy Porter differentiates three strategic basic behaviour patterns: cost management differentiation focusing (specialization) As depicted in the image, these strategic basic behaviour patterns are described by two dimensions: 1. Strategic target object: targets on sectional markets or targets on overall market 2. Strategic advantage: targeting the cost/price advantage or targets from qualitative differentiation. (1) Strategy of cost management: The cost manager is the party that has the lowest (unit) costs of comparable competing products/service performances. For this reason, the strategy of cost management pursues the principal objective of achieving a cost edge before the competitor. The company will focus its entire strategy on keeping costs low, although other areas such as quality, service, etc. cannot be disregarded. (2) Strategy of differentiation: The differentiation process follows the objective of separation from the competition through the offer of a unique service performance or a unique product. Differentiation can be done in many dimensions such as design or brand name, technology, customer service or in other areas. (3) Strategy of focusing/specialization This strategy concentrates on market niches such as certain buyer groups, a certain segment of the product program or a geographically restricted market. In relation to a sectional market, the concentration can either lead to cost management or to differentiation in the served market segment. L01 Page 10

12 Value of differentiation for a company s success: technologies are the fundamental basis for uniqueness opertional strategic normative alignment Strategic success potential capacilities Resources Potential for benefit Strategic Success position Impact on competition bundeling source: Binder/Kantowsky 1996 company market environment Differentiation is the only succesful strategy European companies cannot compete in production costs Downward spiralling of prices destroys chance for yield Only differentiation enables to skim yields for uniqueness from the market Unique requirements technological Resources and capabilities enable a unique potential for success To aim for uniqueness is a chance for european companies to reach successful and lasting differentiation! page 11 Comments on this slide: Technological capabilities and resources, which are present in the company on operative levelm are basis for differentiation. The synergetic composition of capabilities and resources leads to strategic success potentials within the company. If these potentials can be successfully implemented on products on the market, they define the strategic success position of the company. By means of the super-ordinate alignment of the company, those strategic success potentials can be turned into sustaining benefit potentials on a normative level. L01 Page 11

13 Elements of a technology strategy Technological proficiency level Future capabilities and core competences»non-follower«-decisions real leadership vs. technological presence Innovation timing Pioneer- vs. Imitation strategies (fast/late Follower) sources Interne R&D vs. contracted research Acquisition and cooperation policy utilization source: Wolfrum 1995 Internal vs. external utilization Licence policy (e.g. setting industry standards) page 12 Explanation of terms: Core competences: Core competences are systems of ressources and capabilities that are in their interaction valuable for customers and unique compared to competitiors. (Specht/Möhrle 2002) See slide 13 for the following terms: Non Follower Pioneer Strategy = First Mover Imitation Strategy = fast or late follower Remark: The inclusion of external aspects like acquisition or cooperation policies and the external usage of technologies distinguish technology management from R&D management. L01 Page 12

14 Production Management I (Prof. Schuh) Lecture 01 Competitive and strategy: example Porsche Corporate strategy Development of the company growth stabilization disinvestment Competitive advantages Cost leadership differentiation niche Autonomy Strategy Autonomy Cooperation Integration strategy Boundary conditions brake champion First Mover Valveforce control (BMW) Fast Follower laws Company size Resources electronic traction control Late Follower Diesel technology Non Follower Customer expectations Brand conformity Core competences source: Porsche page 13 Explanation: Porsche s corporate strategy is shown in italic letters (growth niche autonomy). First Mover: The company aims at being the first to market with a new technology in order to reach innovation leadership. In the example of Porsche this is the case for their brakes. Fast Follower: The goal of the company is to bring the technology to market shortly after the first mover in this example, Porsche followed shortly after BMW with the electronic valveforce control. Late Follower: Like Porsche with the electronic traction control, Porsche aims at a late market entrance. Non Follower: In this case like Porsche with the diesel technology a company decides for strategic reasons not to enter a market. L01 Page 13

15 From single application to technology platform Technological Innovation Economies of scale Productplatform platform Designplatform leveraging Develop new fields of application further Products/ Derivates easy to realize Obtain maximized use from technology Single application The challenge consists in building up the potential of the technologies far enough to create the basis for a technology platform! page 14 Comments on this slide: The picture shows how to derive new fields of applications from single technological solutions. The technology platform leads to the effect of Leveraging that helps the technological competencies to a longer lever (i.e. more fields of application). In the next stage, it is possible to derive design platforms (i.e. on product level) which enables to create products from existing modules. L01 Page 14

16 Management of technology is also management of technology platforms Focus of technology development platforms combine resources and capabilities in a single network - hard to imitate - longlasting in impact - significant in use for customers Carrier for differentiation strategy Use potential Build up potential Unique usefulness for customer Products Products Products Technological uniqueness platform competition Environment Independent/neutral towards products long lifecycle dynamic inside-out p.o.v. strategy Core competences technical competences Technical capabilities company Resources page 15 Comments on this slide: platforms are a concept of thought that supports the build-up of the previously mentioned strategic success potentials. Starting from the operative capabilities and resources, those are stepwise bundled into technological competencies and then into technological core competencies. The technology platform based on those core competencies is far more complex than the single technological capabilities, hence hard to imitate. At the same time, the platform is more resistant against change, as the loss of single ressources and capabilites is covered by alternative solutions The company s target is to position these technology platforms for unique differentiation in several markets. This broad market diversification reduces the dependency on single markets and opens up opportunities for growth. L01 Page 15

17 platform: example Schott AG potential: Fabrication of break proof, mechanically stable and optically perfect glass! Glass cast Ceran cooking... glasses... TV screens Core competence glass cast Technical competences Glass cutting Human Resources Patents Heat measurement experts Machines Software Quartzmaking Techncial capabilities Resources Raw materials (Quartzes) source: Schott AG page 16 Comments on this slide: Example from Germany-based, worldwide operating company Schott AG, which with ist competency in manufacturing a diversity of glass products realises broad diversification on several markets. L01 Page 16

18 » Push«and»Market Pull«Market Pull Product- or Process innovations starting from existing customer needs Rather incremental improvements (product care) pragmatical Small risk Push Product- or Process innovations based on existing technological ressources Frequent radical technological improvements (Breakthrough-Innovations) visionary high risk (technology for it s own sake?) Quelle: vgl. Gerpott 2005 page 17 Remark: Market Pull and Push are idealized influences, which can be found in reality only as mixed versions of both of them. L01 Page 17

19 Bibliography Cited Literature: BIND96 Binder, V.; Kantowsky, J.: Technologiepotentiale Neuausrichtung der Gestaltungsfelder des Strategischen Technologiemanagement. Wiesbaden: DUV, EVER96 BROC94 PORT97 Eversheim, W. / Schuh, G.: Betriebshütte Produktion und Management. Springer- Verlag. Berlin, Heidelberg, New York. ISBN Brockhoff, K.: Forschung und Entwicklung. Oldenbourg Verlag. München. ISBN Porter, M.: Wettbewerbsstrategie (Competitive Strategy). Campus Verla. Frankfurt a.m., New York. ISBN WOLF95 GERP05 LICHT03 PORT86 ASHT97 KELL97 Wolfrum, B.: Alternative Technologiestrategien. in: Zahn, E. (Hrsg.): Handbuch des Technologie-Managements. Schäffer-Poeschel. Stuttgart Gerpott, T.: Strategisches Technologie- und Innovationsmanagement. Schäffer-Poeschel. Stuttgart Lichtenthaler, E.: Intelligence Improving Technological Decision-Making. in: Tschirky, H.; Jung, H.-H.; Savioz, P. (Hrsg.): and Innovation Management on the move. Orell Füssli Verlag AG. Zürich Porter, M.: Wettbewerbsvorteile: Spitzenleistungen erreichen und behaupten. Campus Verlag. Frankfurt a.m Ashton, W.B.; Klavans, R.A.: Keeping Abreast of Science and : Technical Intelligence for Business. in: Columbus, OH: Battelle Press Keller, G.: Erstellung eines Informationsquellenmix zur Beschaffung von strategischen Informationen für die Technologiefrühaufklärung. Projektarbeit ETH Zürich PEIFF 92 Peiffer, S.: Technologie-Frühaufklärung. Steuer- und Wirtschaftsverlag. Hamburg BULL94 Bullinger, H.-J.: Einführung in das Technologiemanagement. B.G. Teubner. Stuttgart.1994 EVER02 Eversheim, W.: Innovationsmanagement für technische Produkte, Berlin: Springer SERV85 Servatius, H.-G.: Methodik des strategischen Technologie-Managements. 2. Aufl., Berlin: Schmidt, 1985 WOLF91 Wolfrum, B.: Strategisches Technologiemanagement. Gabler Verlag. Wiesbaden PFEI87 SCHT96 KORU98 BROD99 Pfeiffer, W.: Technologie-Portfolio zum Management strategischer Zukunftsgeschäftsfelder. Vandenhoeck & Ruprecht. Göttingen Schmitz, W.: Methodik zur strategischen Planung von Fertigungstechnologien Ein Beitrag zur Identifizierung Innovationspotentialen. Diss. RWTH Aachen, 1996 Koruna, S.M.: Externe Technologie-Akquisition. in: Tschirky, H.; Koruna, S. (Hrsg.): Technologiemanagement. Orell Füssli Verlag. Zürich Brodbeck, H.: Strategische Entscheidungen im Technologiemanagement. Orell Füssli Verlag. Zürich L01 Page 18

20 Further Reading: BOOZ91 Booz, Allen & Hamilton (Hrsg.): Integriertes Technologie und Innovationsmanagement. E. Schmidt Verlag. Berlin BULL99a BULL99b MÜLL01 PFEI90 SPEC02 SPUR98 Bullinger, H.-J. et al.: Innovations- und Technologiemanagement. In: Eversheim, W.; Schuh, G.: Betriebshütte. Produktion und Management. Berlin: Springer, Bullinger, H.-J. et al.: Forschungs- und Entwicklungsmanagement. In: Eversheim, W.;Schuh, G.: Betriebshütte. Produktion und Management. Berlin: Springer, Müller-Stewens, G.; Lechner, C.: Strategisches Management. Wie strategische Initiativen zum Wandel führen. Stuttgart: Schäffer-Poeschel, Pfeiffer, W.; Weiss, E. (Hrsg.): Technologie-Management: Philosophie, Methodik, rfahrungen. (Reihe: Innovative Unternehmensführung; Band 17). Göttingen: Vandenhoeck & Ruprecht, Specht, D.; Möhrle, M. (Hrsg.): Gabler Lexikon: Technologie-Management. Management von Innovationen und neuen Technologien im Unternehmen. Wiesbaden: Gabler, Spur, G.: Technologie und Management. Zum Selbstverständnis der Technikwissenschaft. München: Hanser, WOLF94 Wolfrum, B.: Strategisches Technologiemanagement. 2. Aufl., Wiesbaden: Gabler, ZAHN95 Zahn, E.: Handbuch Technologiemanagement. Stuttgart: Schäffer-Poeschel, ANSO80 Ansoff, H. I.: Strategic Issue management. Strategic Management J. 1. S MUEL93 Mueller-Stewens, G.; Krystek, U.: Frühaufklärung für Unternehmens. Stuttgart: Schaeffer- Poeschel PEIF92 Peiffer, S.: Technologie-Frühaufklärung. Hamburg: S+W Steuer- und Wirtschaftsverlag 1992 VDI 92 VDI Technologiezentrum (Hrsg.): Technologiefrühaufklärung. Stuttgart: Schaeffer-Poeschel 1992 FORD81 Ford, D./Ryan, C.: Taking to Market, in: Harvard Business Review, 2, S , PFEI82 HEIT00 SCHT96 Pfeiffer, W./ Metze, G./ Schneider, W./ Amler, R.: Technologie-Portfolio zum Management strategischer Zukunftsgeschäftsfelder. Göttingen: Vandenhoeck & Ruprecht, Heitzsch, J.-U.: Multidimensionale Bewertung alternativer Produktionstechniken. Ein Beitrag zur technischen Investitionsplanung. Diss. RWTH Aachen, Schmitz, W.: Methodik zur strategischen Planung von Fertigungstechnologien Ein Beitrag zur Identifizierung Innovationspotentialen. Diss. RWTH Aachen, 1996 L01 Page 19