Concurrently Designing a Physical Production System and an Information System in a Manufacturing Setting

Concurrently Designing a Physical Production System and an Information System in a Manufacturing Setting By James Alexander Scott Katzen B.S. Mechanical Engineering, Massachusetts Institute of Technology 1996 Submitted to the Sloan School of Management and the Department of Mechanical Engineering in partial fulfillment of the requirements for the degrees of Master of Business Administration And Master of Science in Mechanical Engineering In conjunction with the Leaders For Manufacturing (LFM) Program at the Massachusetts Institute of Technology June 2003 © Massachusetts Institute of Technology, 2003. All rights reserved. Signature of Author_____________________________________________________________________ James Alexander Scott Katzen Sloan School of Management Department of Mechanical Engineering May 9, 2003 Certified by___________________________________________________________________________ Jeremie Gallien Assistant Professor of Operations Research, Sloan School of Management Thesis Supervisor Certified by___________________________________________________________________________ David Hardt Professor of Mechanical Engineering, Department of Mechanical Engineering Thesis Supervisor Accepted by___________________________________________________________________________ Margaret Andrews Executive Director of Masters Program Sloan School of Management Accepted by___________________________________________________________________________ Ain Sonin Chairman of Graduate Committee Department of Mechanical Engineering 2 Concurrently Designing a Physical Production System and an Information System in a Manufacturing Setting By James Alexander Scott Katzen B.S. Mechanical Engineering, Massachusetts Institute of Technology 1996 Submitted to the Sloan School of Management and the Department of Mechanical Engineering on May 9, 2003 in partial fulfillment of the requirements for the degrees of Master of Business Administration And Master of Science in Mechanical Engineering In conjunction with the Leaders For Manufacturing (LFM) Program at the Massachusetts Institute of Technology June 2003 Abstract The advancement of information technology in manufacturing requires process architects to refine their procedures used to design new manufacturing systems. No longer can these designers implement a physical production system first, and then later incorporate a capable information system to control that production system. Rather, the physical production system and the information system must be designed concurrently to ensure the resulting system yields a seamless flow of information as well as physical material. This thesis reviews the traditional methodology used to design a physical production process. The major tools and steps of that methodology will be reviewed, and case examples will be provided showing how the traditional method is typically applied. Two major shortcomings of the design process (the neglecting of the flow of information and its overly sequential nature) will be identified. To address these shortcomings, specific concepts, models, and methods have been developed. These new tools form the structure of an improved design methodology for manufacturing processes. This thesis provides case examples where the new concepts, models, and methods were applied. These cases provide concrete illustrations of situations where these ideas have been successfully implemented. The overall concepts presented are: 1) the flow of information is as important as the flow of product; 2) the flow of information is often more complicated than the flow of physical material, and frequently it is the sharing of information within a process that governs the process’ performance; 3) the flow of information can be modeled as the flow of physical parts, so many of the same principles that apply to the design of physical production systems can be applied to the design of information systems; and 4) the design of an information system must occur in a concurrent fashion with the development of the physical components of any manufacturing process. Thesis Supervisors: Jeremie Gallien, Assistant Professor of Operations Research, Sloan School of Management David Hardt, Professor of Mechanical Engineering, Department of Mechanical Engineering 3 4 Acknowledgements First and foremost, I would like to thank the Eastman Kodak Company for sponsoring this work, and for its continued support of the Leaders For Manufacturing Program. Specifically, thank you to Vincent Andrews, who as a tireless project champion, made my integration into the project team a tremendous success. In addition, I would like to thank Bix DeBaise and Ron Fish, who taught me an incredible amount about digital photography and manufacturing of electronics. In addition, their backing and support of my ideas were vital to the success of my internship. Also, the following individuals all played a major role in my internship: Paul Antos, Charlie Braun, Bill Carleton, Lori Cohen, Paul Conaway, Julie Cooke, Duane Courtney, Jim Cutaia, Dan Derleth, Eric Dilella, Gerry Edd, Doug Elliot, John Gilly, Dusty Gutoswki, Tim Keefe, Malini Krishnanmurti, Richard Kurchyne, Mike Marcus, Marty Maurinus, Rae Mawn, Jim Merriman, Mark Newhouse, Dave Osterhodt, Bruce Patnuade Patricia Reibstein, Eshetu Setgen, Mike Vaughn, Danny Vindigni, Dave Wakefield, and George Wambach. Also, I was extremely fortunate to work with a truly wonderful group of highly skilled operators: Farooq Abdullah, Bernie Bakewicz, Barry Bareham, Brian Barringer, Steve Beaman, Eugene Clement, Steve Coffey, George Giordano, Eun Lee, Kilcha Lim, Ron Martin, Larry Masseth, Desi Miller, Juanita Nelson, Blanche Nix, Vicky Oliynek, Jacquelyn Phan, Kerry Posick, Barb Randolph, Brian Roller, Ed Rounds, Barb Stephens, Jill Taylor, Chris Terenzi, Mary Toepper, Marty Turner, MaryLou Williams, Bock Yim. I tremendously enjoyed my time working at the Eastman Kodak Company and on the DCS Pro 14n project. I am proud to have been associated with this group of people and with such an awesome product. I wish you all well in the future. Kind thanks also goes to my two thesis advisors: Jeremie Gallien from the Sloan School of Management and Dave Hardt of the School of Mechanical Engineering. In addition, I would like to thank the Leaders For Manufacturing program for its support. I would specifically like to thank my LFM brethren (Eric Green, Ankur Goel, Christine Lindsey, and Eric White) who acted as a sounding board for several of my ideas. Finally, I would like to thank my friends and family for their moral support and their editing help with this thesis. I dedicate this thesis to Ariel Botta. Your continued support and love means everything to me. 5 6 Biographical Note James Alexander Scott Katzen was born on September 13, 1974, in Queensland Australia. His parents, Jay Kenneth Katzen and Patricia Morse Katzen were lifelong adventurers, working for the United States’ Department of State performing heroic roles in isolated areas of the world. Katzen has two older brothers. Timothy is a Duke University graduate and Medical College of Virginia physician and is a cosmetic plastic surgeon practicing in Southern California. David is a University of Kentucky graduate and is a computer networking consultant in Northern Virginia. After growing up mostly in Virginia, Katzen attended and graduated from the Massachusetts Institute of Technology (M.I.T.) in 1996 with a Bachelor of Science Degree in Mechanical Engineering. It was during these years in Boston that Katzen developed his love for the Boston Red Sox. Upon graduation, Katzen relocated to Ypsilanti, Michigan, where he worked for 5 years for Ford Motor Company. For one year, he worked as a Quality Engineer in the Ypsilanti Plant of the Electrical and Fuel Handling Division, stationed in the Manufacturing Quality Office. He then spent the next year and a half working as a Manufacturing Engineer and served on the launch team for an automotive components manufacturing complex on a Greenfield site in Madras, India. Katzen then spent another two and a half years working as a Design Engineer with Ford Racing, working on multiple racing series including Formula One, CART, NHRA, ALMS, and NASCAR Winston Cup. Katzen then returned to M.I.T. in June 2001 to enroll in the Leaders For Manufacturing Program, where he specialized in Mechanical Engineering. He served his internship at the Eastman Kodak Company in Rochester, New York, working to launch the revolutionary DCS Pro 14n digital camera. Upon successful completion of requirements, Katzen will be awarded a Master of Science Degree in Mechanical Engineering from the School of Mechanical Engineering and a Master of Business Administration from the Sloan School of Management in June 2003. After graduation, Katzen will begin work as a Leadership Development Associate for United Technologies Corporation’s Pratt & Whitney Division in Hartford, Connecticut. The author’s professional interests include manufacturing process design, product design, manufacturing information systems, and quality and reliability engineering. Katzen’s personal interests include photography, domestic and international travel, baseball, motorsports, and urban revitalization. In his free time, Katzen enjoys hiking, camping, exploring Boston, and restoring antique cars. Katzen may be contacted via email at [email protected] 7 8 Table of Contents Abstract 3 Acknowledgements 5 Biographical Note 7 Part I: Introduction 1: The Challenge To Be Solved 13 2: Key Findings of Project 17 3: Organization of

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