Ch. 6

EraEvents/ConceptDatesOriginator Industrial RevolutionSteam engine Division of labor Interchangable parts James Watt Adam Smith Eli Whitney Scientific ManagementPrinciple of scientific management Time and motion studies Activity scheduing chart Moving assembly line Federicik W. Taylor Frank and Lillian Gilbreth Henry Gantt Henry Ford Human RelationHawthome studies Motivation theory s 1950s 1960s Elton Mayo Abraham Maslow Frederick Herzberg Douglas McGregor Management ScienceLinear programming Digital computer Simulation, waiting line theory, decision theory, PERT/CPM MRP s 1960s George Dantzig Remington Rand Operation research groups Joseph Orlicky, IBM

EraEvents/ConceptDatesOriginator Quality RevolutionJIT (just-in-time) TQM (total quality management) Strategy and Operation Business process Reengineering 1970s 1980s 1990s Taiichi Ohno (Toyota)W. Edwards Deming, Joseph JuranWickham Skinner, Robert HayesMichael Hammer, James Champy Information AgeEDI, EFT CIM (computer-integrated manufacturing), PCs Internet, World Wide Web 1970s 1980s 1990s Numerous individuals and companiesTim Berners-Lee GlobalizationWorldwide markets and operations Supply chain management Electronic commerce Mass customization 1990sNumerous companies and nations

Quality of Automobiles TGWs (things gone wrong) In First Eight Months per 100 cars Chrysler GM Ford Japanese (avg.) Toyota Quality of SemiconductorsU.S. CompanyJapanese Company Defective on delivery Failur after hours 16% 14% 0% 1% Quality of Room Air ConditionersU.S. CompanyJapanese Company Fabrication defect Assembly line defects Service calls Warranty cost (as % of sales) 4,4% 63,5% 10,5% 2,2% <0,1% 0,9% 0,6% Quality of Color TVsU.S. CompanyJapanese Company Assembly line defects per set Service calls per set 1,4 1,0 0,01 0,09 A COMPARISON OF AMERICAN AND JAPANESE PRODUCT A COMPARISON OF AMERICAN AND JAPANESE PRODUCT IN 1970s AND 1980s

Driver of Organizational Change Technology Push Market Push Driver of Organizational Change Technology Push Market Push Value Chain Configuration Configuration OrganizationalArrangementsOrganizationalArrangements Design of Work and Human Resource Management Design of Work and Human Resource Management Overview of The Chapter

Tekonolgi ada di lintas departemen dalam suatu organisasi. Jaringan komputer memungkinkan informasi mengalir interorganisasional, memungkinkan ‘value chain’ beberapa organisasi saling terkoneksi dan dapat dimanaj secara simultan. Teknologi pada umumnya, dan teknologi komputer pada khususnya, memungkinkan kegiatan intelektual suatu pekerjaan dipisahkan dari kegiatan fisiknya

ExistingNew Existing Hardware Dominant Upgrading of Equipment Software Dominant Training Programs Hardware Dominant Voice Trasmission Software Dominant Quality Circles Job Design New Hardware Dominant Evolution of Information - Architecture Software Dominant Socio-Technical System TQM Hardware Dominant AI Robotic Software Dominant Re-engineering Linkage among Elements Technology Elements TYPES OF PROCESS INNOVATION

Teknologi baru merubah cara perusahaan mengaktualisasi kegiatan value chain utama, misal: manufacturing, marketing, R&D. Inovasi proses, utamanya teknologi informasi, dapat digukanan untuk merubah cara melakukan kegiatan value chain tambahan, contoh: TQM, marketing research etc. Inovasi proses juga memungkinkan perusahaan melakukan definisi ulang cakupannya, misalnya apakah kegiatan value chain dilakukan secara oursourcing atau insourcing.

Seperti pada inovasi produk, dalam inovasi proses juga terdapat TECHNOLOGY PUSH dan MARKET PULL yang merubah value chain dan value constellation suatu perusahaan. Inovasi proses, baik teknologi push maupun market pull dapat memberikan satu atau lebih konsekuensi: Meningkatkan kecepatan operasi dan responsiveness terhadap pelanggan Mengurangi posisi biaya perusahaan menjadi relatif lebih rendah dari pesaing Sifat produk yang sesuai Meningkatkan fleksibilitas tempat kerja.

TECHNOLOGY PUSH Newer technology make feasible value chain reconfiguration MARKET PULL Market requirement dictate value chain reconfiguration Techonoogy T-M MATRIX

1) Craft Production, 2) Mass Production, 3) Lean Production, dan 4) Mass Customization.

Barang-barang dibuat dengan tangan oleh seseorang dengan mengolah bahan, dengan alat- alat dan ketrampilan. Pengrajin atau seniman menggunakan ketrampilannya atau pengetahuannya untuk merubah bahan baku ke dalam barang jadi. Biasanya diproduksi secara one-at-a-time dan proses produksi sangat lambat.

Menginjak abad ke 20, proses craft production sudah tidak mungkin mendukung pertumbuhan dari perusahaan-perusahaan industri yang harus memenuhi permintaan yang tumbuh pesat sesuai dengan pertumbuhan jumlah penduduk. Mass production merespon dengan memproduksi barang dalam jumlah besar.

5 Prinsip Konfigurasi Value Chain Interchangable part Specialized machines Focus on the process of production Division of labor Flow 7 prinsip utama manajemen Focus on low cost and low price Economies of scale Product standardization Degree of specialization Focus on operational efficiency Hierarchical organization with professional manager Vertical Integration.

New Product Mass Production Process Low-Cost Consistent Quality, Standardized Product Mass Production Process Stable Demand Long Product Life Cycle Long Product Development Cycle THE UNDERLYING LOGIC OF MASS PRODUCTION

Toyota merupakan pioner elemen kunci dari model lean production. Toyota menerapkan prinsip-prinsip yang digunakan mass production, akan tetapi dimodifikasi sesuai dengan kondisi Jepang. Toyota memodifikasi filosofi large-scale, highly efficient, constant flow production nya Ford, untuk diterapkan pada perusahaannya (fasilitas terbatas) dengan cara yang menarik.

1.Team organization 2.Training 3.Continuous improvement 4.Just-in-time manufacturing system (JIT)

Mass customization dapat dipandang sebagai sintesis (campuran) dari craft production dan mass production. Low cost pada mass production dicapai melalui economies of scale, sedangkan pada mass customization, low cost dicapai melalui economies of scope.

Hubungannya dengan konfigurasi Value Chain: Flexible manufacturing system Computer-aided design/computer-aided manufacturing (CAD/CAM) Computer integrated manufacturing Use of information and telecomunication technologies Use of compterized databases. Hubungannya dengan Sistem Manajemen Just-in-time delivery Reducing set-up and changeover times Compressing cycle time Procution to order

COMPARING MASS PRODUCTION AND MASS CUSTOMIZATION Mass ProductionMass Customization FocusEfficient through stability and control Wariety and customization through flexibility and quick responsiveness GoalDeveloping, producing, marketing, and delivering goods and services at prices low enough that nearly everyone can afford them Delivering, producing, marketing and delivering affordable goods and services with enough variety and customization that nearly everyone find exactly what they want Key FeatureStable demand Large, homogeneous markets Low-cost consistent quality, Standardized goods and services Long product development cycle Long product life cycle Fragmented demand Heterogeneous niches Low-cost, higly-quality, customized goods and services Short product development cycles Short product life cycle

Craft Customization Fragmented Production Mass Production Variety at Low Cost Mass Customization Unit Cost Of Apparel In US Varety Index ? PRODUCTION TECHIQUES AND PRODUCT VARIETY IN THE U.S. APPAREL INDUSTRY

Process Structure Unique Product Multiple Products Major Products Standard Products Commodities Job Shop Stage 1: Commercial Printer Batch Sage 2: Heavy Equipment Assembly Line Stage 3: Auto assembly Continuous Flow Stage 4: Sugar Refinery Mass Customization THE EVOLVING PRODUCT-PROCESS MATRIX

PERBEDAAN BERBAGAI DIMENSI PRODUCTION SYSTEM Dimensi ProduksiCraft ProductionMass ProductionLean Production Mass Costomization Lingkage between organization and market Frequent interaction; close relationship A buffered relationship; customers may be involved in design, but litle involvement thereafter Increased focus on customer needs The organization tightly attuned to the marketplace Linkage between Product and Processes Each product unique and produced one at a time Standardized products produced bystandardized processes Focus on the more efficient production of standardized product Production processes are flexible and change rapidly to accommodate customized products Mix of Labor and Capital Labor IntensiveCapital Intensive; in many cases, capital replaced labor; specialized machines and labor come into existence Increased labor and capital; social skills of workers become important Technology replacing specialized labor Mix of Hardware and Software Elements of Technology Primarily software intensive; technology imbedded in the craftsman Hardware intensive; production processes built into equipment New technologies are software dominant New technologies include both hardware and software elements The Nature of the Social System in the Workplace Close interaction among craftsmen Worker become interdependent but socially separated Social systems seen as key to productiviti Further reliance on the potential benefits inherent in the social system.

Pengaruh Value Chain Configuration terh Struktur Organisasi Proses Organisasional Peran Manajer

Perubahan teknologikal dalam konfigurasi rantai nilai juga mempengaruhi struktur organisasi. Struktur organisasi biasanya direfleksikan dalam bagan struktur organisasi yang menggambarkan proses dan kegiatan rantai nilai dalam organisasi Tiga komponen struktur organisasi: 1.Basis formasi subunit 2.Derajat sentralisasi 3.Derajat hierarkhi

Proses seperti pengambilan keputusan, komunikasi dan konversi input menjadi output dipengaruhi oleh perubahan teknologikal. Meningkatnya adopsi teknologi informasi, dan teknologi software dominant (seperti re-engineering) merupakan sebab dari siklus perkembangan yang lebih pendek, komunikasi lebih cepat dan keputusan lebih cepat

Kencenderungan sekarang mengindikasikan bahwa perubahan teknologi proses membutuhkan ketrampilan tenaga kerja yang lebih tinggi dan praktik manajerial yang berbeda. Perubahan struktur organisasi juga menyebabkan adanya perubahan dalam peran manajer.

CharacteristicCraft ProductionMass ProductionLean Production Mass Cuatomization Organizational Strucure 1. SubunitsSmall, few subunitBased on similar activies Overlay of teams on existing group Team structure 2. Locus of Decision CentralizedIncreasingly Decentralized Higly Decentralized 3. Degree of Hierarchy LowHighModerateLow Organizational Process 1. 1.SpeedLow Low to moderateHigh 2. Customer Responsivness HighLowModerateHigh Management Role Partisipative Supervisory DirectiveFacilitative Parcitipative Conceptual Facilitative Parcitipative Value Chain Configuration and Organizational Characteristic

1.Karakteristik tugas (Task Characteristic) 2.Saling tergantung antar tugas 3.Level ketrampilan yang diperlukan

High High Task Variety Low LowNonroutine Frequent face-to-face meeting; group meetings Frequent face-to-face meeting; group meetings Unscheduled meetings Unscheduled meetings MIS, DIS support MIS, DIS supportEngineering Large computer bases Large computer bases Written and technical material Written and technical material Frequent statistical report Frequent statistical report MIS support MIS supportCraft Personal observation Personal observation Occasional face-to-face; group meetins Occasional face-to-face; group meetins Telephone TelephoneRoutine Written reports Written reports Rules and procedures Rules and procedures Some statistical data Some statistical data MIS support MIS support Low LowHigh Task Analyzability Matrix of Task Characteristic

As technological progress influences skill levels required, it alters the career paths in organization. Change in information technology have affected the work and career of managers The career paths demand adaptive capabilities but offer work-related flexibility, and they have altered the nature of the economic contract between employees and firms.

Dimensions of Wordk Design Differing Production Regime Mass ProductionMass Customization Task CharacteristicsFormalzed and standardized; low variety and high analyzability Less routine and specialization; computer automation provides greater analyzability Requisite Skill LevelsLimited and very specializedBroadened to encompass many stages of the production process; highre level of technical and personal skills Task InterdependenceAssembly lines heighten interdependence among task Heightened interdependence, but communication becomes critically important FlexibilityVery inflexible; locations and times were set Technology allows flexibility in both time and location Employment ContractStable ladders of career progression within narrowly defined function Skills needed in multiple functions so lateral progression becomes important Adaptive CapabilitiesLittle need for adaptive capabilities Workforce must be highly adaptive DESIGN OF WORK UNDER DIFFERING PRODUCTION REGIMES