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OPTIONAL
PRE-CONFERENCE WORKSHOP
Cost Management and
Lean System Design Simulation
David Cochran
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Your Pain...
Are you finding
that your cost accounting doesn’t show the benefit of
lean? Is lean difficult to sustain because you are
having problems measuring the benefits?
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Proposed
Solution...
This hands-on
simulation of lean system design provides a clear
understanding of proven methods to reduce costs and
measure success with lean.
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Results...
Learn the
approach of how to design and measure work to achieve
business objectives to implement your lean system
design.
OVERVIEW
This workshop provides the
simulation of the traditional manner in which cost is
reduced with traditional management accounting and other
methods. We will impose a traditional cost reduction method
on an unstable manufacturing system to observe how this
input affects people in manufacturing and performance
results. We will then practice the System Design method that
Dr. Cochran developed at MIT to define the new physical
system and operating environment to meet customer and
sustainability needs at the lowest cost.
PURPOSE
The
purpose
of physical system design and simulation is to create a
model of how a manufacturing system operates to achieve
system stability. A system operates at lowest cost only when
that system reliably and consistently achieves the
objectives. The objectives of the system design define what
a system must do to satisfy the customers. These objectives
are functions that the system must achieve to operate at the
lowest cost. Each enterprise has its own unique set of
functions that must be met to satisfy the customers. This
workshop enables the participants to define the objectives
(also called Functional Requirements) of system stability to
be able to reduce cost over the long run.
Lean has been successful
for many companies because many companies have common
functions. For example, some common functions of
manufacturing systems are to deliver the right product,
at
the right time, in the right quantity to the customer. A
physical system design simulates the actions of the people
and the flow of parts within a manufacturing system.
Computer simulations only simulate the movement of the
parts. It is the actions of the people within a system that
becomes important to control a system. This workshop session
combines physical simulation and a language for system
design for participants from each enterprise to define the
objectives of their system and then to create the physical
simulation model to achieve their unique system design
objectives and solutions. When the people within an
enterprise articulate their system design based on
objectives and physical solutions, performance measures are
then aligned to re-enforce the achievement of the objectives
and the behaviors that constitute the physical solutions.
A
physical simulation allows an enterprise team to
test the system design’s objectives and physical
simulation as a type of hypothesis. This approach
parallels the thinking of the Toyota Production
System designers, and goes one step further. A team
is able to implement its own system design rather
than to copy Toyota’s solutions. Therefore the team
must become clear on the functions that its own
system design must achieve and also define how these
functions are met through the physical
implementation. This workshop will enable the
participants to use the system design language to
define functions and physical solutions and to test
their design through a physical simulation.
Participants will be grouped into to teams to design
their factory system to meet customer objectives at
the lowest total cost.
Related
Afternoon Session:
An
Afternoon Session follows this (the morning)
Collective System Design (CSD) Simulation
that describes the CSD application in Lean
Accounting for a medium –sized government
and commercial manufacturing company.
Duration:
Half day:
8:00 a.m. - 12:00 p.m.
Fee:
$395
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