Manufacturing in the spotlight

Automotive Manufacturing & Production, Nov, 1997 by John E. Ettlie

The program itself was the rare treat where companies, students and some invited guests bask in the glory of one of the most successful endeavors in manufacturing management and education in the country. Twenty-four projects summaries were presented concurrently and continuously all day by 70 students. Ten of the projects related directly to quality issues in manufacturing: final inspection, continuous improvement, scrap reduction, procurement, customer responsiveness, first run quality improvement, safety, lean manufacturing, benchmarking and improving customer needs assessment. Another six of these projects were at least indirectly related to quality. This is interesting in and of itself since quality is no longer in the headlines of the popular and business press.

Companies participating as hosts of these projects included some well-known U.S. companies: 3M, Alcoa, Boeing, Chrysler, Cummins Engine, FMC, Ford Motor, General Cable, GE, General Motors, Harley-Davidson, Hewlett Packard, Intel, Lutron, Merck, United Technologies, and Xerox.

The purpose of these projects is to meld engineering and business to help solve significant manufacturing challenges for these companies and to provide students with the opportunity to make a difference and learn in the process.

Our project was typical. Working with an automotive OE, three students (two engineers and one MBA), became temporary full-time employees of the host company and evaluated products and emerging markets around the world to guide globalizing investments. Ultimately, a comprehensive manufacturing strategy resulted. One primary emerging market was ratified for the company, and two secondary markets were identified. A competitive analysis was conducted. Market segments in each target country were documented and quantified.

Two alternative technologies for manufacturing a significant component for the new car were compared rigorously. Interestingly, there was only a 6% difference in the expected returns on these two technologies, so non-financial criteria prevailed in the selection. Quality, as perceived by the customer, was one of the deciding factors.

These three students conducted extensive focus groups and evaluations in order to arrive at their conclusions and justify their recommendations. Finally, several plant layout options were evaluated and detailed. This included the make-buy recommendations for the manufacturing strategy.

A supply chain project might serve as another example. Two MBAs, both in the manufacturing option of the TMI, worked for a drug company in the new, more centralized reality of distribution in this industry. They were able to identify significant savings in safety stock reductions (in excess of $3 million annually) while maintaining a 99% service percentage. They also were able to deliver a simulation tool to the firm that it can use for future decisions, should conditions change. Pilot implementation is already in progress.

What do these manufacturing projects all have in common? Aside from the obvious, that the degree of integration between University and Industry is reaching new highs every year, and that quality appears and reappears as a perennial issue in manufacturing, the projects themselves share elements that make this process impressive.

1. First, and perhaps most important, these are not "make-work" or "safe" projects that students can use as their "sandbox" for credit. All the best projects are central to key issues facing these firms and the outcomes matter. Wasting time would be considered a failed effort.

2. The solutions and methodologies represent a creative blend of business and engineering disciplines. And it isn't always industrial engineering and operations management. Projects typically rely heavily on the other engineering disciplines (e.g., materials science in our project) as well as marketing, finance, information systems and organizational behavior.

3. These projects promote learning defined on a much grander scale than is typically accepted by this definition. Students learn, of course. But companies report significant learnings, as do faculty. I learned a tremendous amount on our globalization and emerging markets project. And finally, what a wonderful way to conduct a job interview!

(More information about these summer team internship projects and the program can be obtained from Marika Jones, Managing Director, or Paul Kirsch, Team Project Manager, TMI, University of Michigan, 313-998-8160).