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I The Impact of Self-Serve Applications on Manufacturing Performance by Justin C. Burke B.S. Kinesiology University of Massachusetts Amherst, 2009 SUBMITTED TO THE SYSTEM DESIGN AND MANAGEMENT PROGRAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENGINEERING AND MANAGEMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUNE 2018 @2018 Justin C. Burke. All rights reserved. The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part in any medium now known or hereafter created. Signature of Author: Signature redacted Department of Engineering Management May 11, 2018 Certified by: Signature redacted Michael Cusumano Sloan Management Review Distinguished Professor of Management Thesis Supervisor Accepted by: Signature redacted t' Joan Rubin Executive Director, System Design & Management Program Director MASSACHUSES INSTITUTE OF TECHNOLOGY co LU JUN 2 0 2018 LIBRARIES _j The Impact of Self-Serve Applications on Manufacturing Performance by Justin C. Burke Submitted to the System Design and Management Program on May 10, 2018, in Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Management ABSTRACT This thesis examines the use and impact of self-serve applications in manufacturing environments, while providing a historical review of manufacturing management systems. A survey of Tulip Interfaces, Inc. customers was performed. This survey focuses on manufacturing challenges, how customers typically dealt with these challenges, the impact of the Tulip platform and future opportunities for customers. These surveys were conducted over the phone and in-person using open-ended questions. Tulip applications are found to increase operator performance and product quality, while improving organizational collaboration as inter-departmental teams implement new technology. Conversely, the perception of the greatest challenge to future adoption of new technologies (such as Tulip) is organizational resistance. Thesis Supervisor: Michael Cusumano Title: Sloan Management Review Distinguished Professor of Management Justin Burke Page - 2 - Dedication & Acknowledgements First, I'd like to thank my thesis advisor, Professor Cusumano for his insight, advice and guidance. Without the support of Natan Linder, the rest of the Tulip team and our fantastic customers, this thesis wouldn't have been possible. I'd also like to thank Ben Linville-Engler, Jose Raul Ivan Rodriguez, John Rising, Adrien Moreau, Tim Chiang and John Gilmore for their support and feedback. Finally, my deepest appreciation and gratitude to my family, close friends and everyone I've met at MIT who has taught and inspired me. Justin Burke Page -3 - Table of Contents List of Figures..............................................................................................................- 6 - List of Tables ............................................................................................-.....- 7- Introduction ...........................................................-....- 8- Research M ethods..............................................................................................................- 9 - Chapters.............................................................................................................................- 9- Chapter 1 - History of M anufacturing ......................................................................- 12 - Recent History of U.S. M anufacturing ..............................................................................- 13- Lean M anufacturing .........................................................................................................- 14- Chapter 2 - Technology & Com m unication..............................................................-15 - Rise of the Com puter for Enterprises ...............................................................................- 15 - Information ......................................................................................................................- 16- Bringing it all together......................................................................................................- 17 - History of M RP, Predecessor to ERP for Storage of Inform ation ......................................- 18- Com m unication of Information ........................................................................................- 19- Chapter 3- Manufacturing Management Systems Today.....................................- 21 - ISA-95 M odel....................................................................................................................- 21 - Coordinating Systems.......................................................................................................- 22 - W hy did we end up here? ................................................................................................- 22 - The Last Digital M ile .........................................................................................................- 23- Justin Burke Page -4- Chapter 4 - Tulip Platform & Custom ers...................................................................- 25 - Shop-Floor loT & Connectors............................................................................................- 25 - M anufacturing Applications .............................................................................................- 26- Analytics with Live Data ...................................................................................................- 27 - Tulip Customer Characterization ......................................................................................- 28- Chapter 5 - M anufacturing Challenges ....................................................................- 29- Labor ................................................................................................................................- 29- Quality .............................................................................................................................- 30- Assets...............................................................................................................................- 30 - M arket .............................................................................................................................- 31- Innovation........................................................................................................................- 32- Tracking Productivity........................................................................................................- 33 - Adm inistrative - Overhead / Support Staff / Regulation ..................................................- 33 - General Observations.......................................................................................................- 34- Chapter 6 - Pre-Tulip Solutions to Manufacturing Challenges..................................- 35- Guidance of Operations ...................................................................................................- 35 - Data Collection from Operations......................................................................................- 36 - Im plications of Current State ...........................................................................................- 36 - Chapter 7 - W hy Custom ers Pick Tulip......................................................................- 39 - Visibility ...........................................................................................................................- 39 - Justin Burke Page -5- Ease of Development for Data Capture ............................................................................- 39 - Capture Tacit Knowledge for Continuous Im provement ..................................................- 40- Prevent Errors in M anufacturing ......................................................................................- 40- Im proving Interdepartmental Coordination................................................................ - 41 - Chapter 8 - Im pact of Tulip on M anufacturing .........................................................- 42 - Chapter 9 - Future Opportunities & Challenges........................................................- 45 - W hat are manufacturers concerned about?.....................................................................- 45 - Digital Transformation Initiatives.................................................................................- 46 - Autom ation ......................................................................................................................- 47 - Supply Chain.....................................................................................................................- 47 - Artificial Intelligence ........................................................................................................- 48 - Future Research ...............................................................................................................- 48 - Bibliography .............................................................................................................- 49 - List of Figures Figure 1 - Keyword References in Literature (Jean-Baptiste Michel*).........................- 13 - Figure 2 - Standard Data Entry & Errors M odel .........................................................- 24 - Figure 3 - Typical Manufacturing Data Flow & Activities