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.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. / Vita. / Includes bibliographical references (v. 2, leaves 291-308). / As the business world is neither linear nor static, the mastery of its "chaotic" nonlinear dynamics lies at the heart of finding high-leverage policies that return uncommon benefits for marginal costs. Today's global enterprises are dynamically complex socio-technical systems where cause and effect of management's strategies and policies are distant in space and time. Spatial complexity recognizes that correctly defining the limits of the extended enterprise is essential in maximizing shareholder value via stakeholder management. Temporal complexity recognizes that policies, decisions, structure and delays are interrelated to influence growth and stability. An enterprise's long-term success therefore is a function of management's ability to control this "dynamic complexity". The goal of this thesis is to develop management insights into "enterprise design", i.e. to create more successful management policies and organizational structures. Enterprise design can be decomposed into the science and art, or engineering and architecting. Using the heretofore-separate academic fields of system dynamics and structural dynamics, an attempt is made to define the scientific "laws" of enterprise physics that will then be used to construct non-obvious, often counter-intuitive enterprise architectures. The goal is to combine the methodologies from the "business of building" with the "building of business", in an attempt to draw lessons from the design of high-rise buildings for the design of high-rising enterprises. Throughout this thesis, examples of a variety of socio-technical enterprises are discussed in order to explore and test the principles and insights developed herein. There is however a unifying case study / (cont.) used throughout of one of the world's most dynamically complex socio-political-technical enterprises: the Commercial Airplanes enterprise of The Boeing Company. This thesis uses the approaches of system and structural dynamics to explore Boeing's stability, growth, market share and profitability. / by Theodore F. Piepenbrock. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. / Includes bibliographical references (p. 135-136). / Intel Corporation is looking to strengthen its long-term competitive armor by engaging in new initiatives to develop world-class customer service and build strong customer loyalty. A company's supply chain design and processes often hold the key to how well the company can serve its customers. This thesis looks to unlock new approaches for Intel to improve the customer responsiveness of its microprocessor supply chain. The primary approaches examined include (1) the identification and implementation of customer-focused supply chain metrics through a metrics framework and (2) the application of traditional inventory models and service level to determine optimal microprocessor inventory levels for Intel's die and finished goods inventories. The base stock inventory model is used along with extensions to the model based on work by Graban (1999) and Levesques (2004) that include two-stage inventory analysis along with supply variability inputs. The results of the inventory models are then compared with Intel's current inventory strategy based on heuristics. Next the application of the inventory models are extended to examine the possibility of setting service levels by product segment and the resulting impact on overall inventory mix and inventory levels. Finally, other approaches for improving the customer responsiveness of Intel's microprocessor supply chain are discussed at a high level as potential areas for future research. Many of the frameworks, learnings, and insights from the research done at Intel are transferable to other corporations which seek to make similar improvements to the customer responsiveness of their supply chains. / by Jim Chow. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Chemical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. / Includes bibliographical references (p. 61-62). / The Eastman Kodak Company's Annesley, United Kingdom facility assembles consumer and professional film for distribution to the European, Middle Eastern, African, and Russian (EAMER) region. Under pressure from digital photography, Kodak is managing the traditional film business for cash to fuel strategic initiatives throughout Kodak. Thus, cost reduction is a focus of the Annesley facility. This thesis describes a cost reduction initiative in the Annesley facility's component supply chain to eliminate a storage and staging warehouse. The specific tools used to complete this effort include the use of Strategic Inventory Placement (SIP) modeling1, implementation of kanbans, and application of excess inventory calculations. The intent of applying the SIP model was to find unnecessary inventories. Instead, the model revealed key supply chain challenges and constraints for the project to overcome. Kanbans were implemented across the Annesley and vendor sites. The design of these kanbans provides incentives to drive further lean improvements at Annesley and the vendors. Kanban sizes were calculated by a maximum per lead time methodology. This methodology provides a better estimate of demand variability than the reorder point, order up to methodology previously employed. Finally, the optimal stock level was calculated for components with excess inventories. The results of these calculations were combined with knowledge of future demand to reduce inventory to optimal levels. Through completion of this work the component storage and staging warehouse was closed. The kanban systems improved customer service while lowering inventories through improvement in inventory record accuracy. Using the optimal inventory calculation, excess and obsolete / (cont.) inventories were eliminated. These actions allowed sufficient inventory to maintain Annesley's production to be located at the Annesley site. / by Eric G. Cheslek. / S.M. / M.B.A.

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 (leaf 63). / E-commerce is generally thought of as a world without walls. Although a computer monitor may replace a storefront window, the products that are purchased online have to be distributed from a brick and mortar warehouse. Amazon.com now makes it possible to instantly order and quickly receive everything from CDs and books to large toys and home furnishings. Amazon's success not only depends on their e-business capabilities, but also on their distribution and warehouse management systems that support them. Fulfillment center management therefore has become an important component of Amazon's unique set of system activities that serve as a corporate strategy. In an attempt to improve current and future warehouse management practices, the engineering group at Amazon has recently invested in Discrete Event Simulation technology. This thesis focuses on the creation of a discrete event simulation of the Fernley, NV semi-automated distribution center's outbound flow process. More specifically, the business subjects investigated include: picker variability, tote diversion, item-per-tote reduction, and conveyor merge logic. The model presented is Amazon's first attempt at simulating this environment and serves as an initial step towards a more detailed simulation of this facility. Preliminary findings from the simulation are presented and the report is concluded with a cultural evaluation of the present engineering directive. It should be noted that this published version of the thesis has been approved by Amazon.com and does not contain any proprietary data. A fully detailed version of this thesis was only submitted to Amazon.com and to the advisors listed below. / by Anthony G. Faranca. / S.M. / M.B.A.

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2004. / Includes bibliographical references (leaf 32). / This thesis is a description of an internship project at an aerospace parts distribution company. The goal of the project was to reduce inventory by applying a pull ordering system to the distributor's value chain. The thesis provides background on the theory of "push" vs. "pull" systems, and a discussion of how pull systems can reduce inventory while maintaining or improving service level. Typically, pull systems are applied to situations of relatively frequent and constant demand. Using a model developed for the internship company, we demonstrate that a two-bin kanban refill system can be applied to reduce inventory by 50-60%, even given a situation of volatile demand. We describe the pilot project (currently in progress) intended to prove out the kanban system's performance, including the team composition, implementation plan, and perceived barriers to implementation. In conclusion, we reflect on the project's results and present suggestions for future improvement. / by Amber J. Chesborough. / M.B.A. / S.M.

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 122-127). / The Largo manufacturing site of the Raytheon Company is a pure production facility with limited collocated design capabilities. All of the initial design and development engineering is done in four external sites - Marlborough, MA; St. Petersburg, FL; Towson, MD; and Ft. Wayne, IN - before final specifications are "thrown over the wall" to Largo for production. Because manufacturing is geographically sequestered there are numerous organizational and informational disconnects. Accountability is not easy with four distinct program management offices; each has equally distinct incentives and needs, and expects stellar results from the Largo production staff. Materials normally account for approximately 75% of the total costs for a standard manufacturing operation. Largo is no different; however its material costs are often even higher than this benchmark for unique reasons. Difficulties arise for Largo in structuring its supply chain agreements because the four design sites have disparate material requirements and harbor unique supplier preferences. A salient symbol of the challenges faced by the site's supply chain management group is the millions of dollars worth of inventory that sits in the vast factory storeroom. Current inventory floor accuracy is at an unacceptable level of 85.3%. / (cont.) Getting rid of the inventory monster and its attendant problems is no trivial task, and certainly not one that could be accomplished in a six month LFM internship. But steps were taken to help get the ball rolling in the right direction and to generate some quick wins in the near term. The first phase of the project involved the creation of a novel sourcing agreement with a key CCA supplier. The second phase involved optimizing the replenishment system to minimize material flow, implement pull, and increase material accountability. The final phase involved creation of a financial cost v. benefit model to standardize the site's methodology for making sourcing and partnering decisions in the future. All of these topics are discussed in this thesis as shown in the table of contents. Overview of main internship project tasks: The internship project was scoped to fit within the six and one half month allotted time period and was structured around the main problem points I have just briefly touched upon: 1. Identify optimal candidate supplier and part with potential for significant SMI cost savings. 2. Structure SMI supplier partnership agreement. 3. Implement and automate calculation of kanban system to control inventory 4. Create SMI cost v. benefit tool to prioritize future projects according to expected returns on investment. / by Colin Ducharme. / M.B.A. / S.M.

Thesis (S.M. in Naval Architecture)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; and, (M.B.A.) -- Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 63-64). / In a recent contract, CVN 78, Northrop Grumman Corporation has been experiencing significant pressure from the Navy to reduce cost in the design and construction of the new nuclear aircraft carrier class. Furthermore, the joint venture project between General Dynamics Electric Boat and Northrop Grumman Newport News to build the next fleet of Virginia Class Submarines has budgetary incentives tied to the contract. In order to meet these expectations, Northrop Grumman Newport News shipyard has responded by focusing on ways to better synchronize manufacturing in order to meet schedule and reduce costs. Migrating from the traditional push production to the concept of pull production, it is projected that inventory and operating expense will reduce significantly as pull will help to synchronize production efforts. There are different ways to approach the implementation of pull. Goldratt's Theory of Constraints was chosen as the most appropriate method in the job shop environment of the shipyard's Fabrication Shop. This thesis focuses on the design of a Drum-Buffer-Rope implementation of the Theory of Constraints in a high variability, high volume steel fabrication shop. Additionally, it describes how this method was selected over alternative pull systems. Finally, a case study of implementation design will be described along with an evaluation of the system design. / by Malia Schoch-Rodriguez. / M.B.A. / S.M.in Naval Architecture

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2006. / Includes bibliographical references (p. 91-92). / The 6D program at Intel® Corporation was set up to improve operations around capital equipment reuse, primarily in their semiconductor manufacturing facilities. The company was faced with a number of challenges, including differing work flows across multiple locations, lack of centralized work flow management, discontinuous inventory information, and other opportunities for cost reduction. The internship was set up to benchmark and explore potential for integration of best known methods, accumulated both inside and outside the company. Based on interviews, research and quantitative analysis, opportunities were identified for reuse of equipment shipping crates, improvement in warehouse inventory management, and changes in labor models to facilitate better knowledge capture and dissemination. As a result of this study Intel® Corporation may realize significant improvement in the areas mentioned in terms of cost reduction, process improvement and knowledge management. By using a flexible approach to problem identification and generating organizational interest in the improvements, recommendations were well received and should lead to eventual adoption. / by Jacob Silber. / S.M. / M.B.A.

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, 2006. / Includes bibliographical references (p. 68-69). / Dell is a well-known consumer electronics manufacturer that has experienced astounding rates of revenue growth since its inception in 1984. Regarded as a supply chain innovator, Dell has attained success through industry-revolutionizing ideas such as vendor-managed inventory, pull manufacturing, and direct sales. Today, continuance of revenue growth for Dell requires not only rapid innovation, but also rapid geographic and product expansion. Until a few years ago, Dell only had one facility in the United States. All of Dell's US-based systems and processes were constructed to optimize this single factory. Since 1999, Dell has added a number of new facilities in the US - factories and merge centers - for the sake of proximity to customers as well as additional capacity. Also, Dell recently began practicing more product leveling than in the past, producing multiple types of systems at the same factory. Finally, Dell's US supply base has migrated to Asia, as have those of most in the industry. This confluence of complexities has led to a significant increase in instances of material imbalances, whereby any given part has not been distributed to the various sites in accordance with their proportion of actual demand, often resulting in costly expedites from site to site or delayed shipments to customers. / (cont.) Part of the solution to this problem is what Dell has termed "Dynamic Replenishment". As Dell's US supply has shifted from America-based to Asia-based over the past five years, the effective lead time for most ocean-shipped parts has increased from days to several weeks. As a result, the site-level forecast for routing of an ocean shipment is more frequently incorrect by the time it reaches the US, and material imbalances occur. In order to reduce these imbalances, Dynamic Replenishment processes aim to proactively re-route material (if needed, based on campus inventories and forecasts) upon arrival at the US port. This thesis will focus on the tools, information, processes, and organizational roles that are required to ensure proper routing of material at the latest possible juncture in Dell's ocean-network supply chain. Treatment will also be given to the idea that the material balancing problem is one of many that result from Dell's rapid supply chain growth, and some related issues will be examined from this broader perspective. (A note on scope: The content of this thesis is related only to Dell's US-based operations. All history, facts, and comments should be taken in this regard.) / by Amy M. Reyner. / S.M. / M.B.A.