Fall 2009 The Global Enterprise IEMEE4310, AMS 441, AMS 551
Everything is changing. I used to describe this course as a bridge between Academia and Industry – thinking mainly U.S. industry. Today, it is a bridge between Academia and the Imploding/Exploding?? Globalized Industrial World.
The strategy and operations of globalized enterprises that either manufacture a product or provide a service are explored. The Dean of a major U.S. Engineering School asked Sony’s Founder, Akio Morita, “If we teach our students JIT, computer aided design, flexible and lean manufacturing methods, is that what you want?” Morita answered, “No, we know that; produce students who understand the spirit and process of a Global manufacturing business.” Today, that teaching has to account for the total connectivity of Global commerce in expanding, static or decreasing markets. This course teaches the spirit and process of a manufacturing enterprise in a globalized world in which off-shoring and outsourcing are merely two of a number of options available to a company for the development or manufacture of products. I integrate the practice of engineering with the operations of a global business whether it is product development, manufacture, financial measurements, ethical considerations or the use of the Internet to facilitate rapid and efficient business communications.
Professor Sheldon Weinig has come full circle from a Professor to entrepreneur to CEO running a globalized public corporation for 25 years. The company was acquired by SONY and he became Vice Chairman of Engineering and Manufacturing of SONY America. After 7 years in this position he retired and returned to his first love -teaching. He serves on the boards of a number of public and private companies.
E-Mail: SW263@columbia.edu FAX: 212-754-5830
Web page: (http://www.ams.sunysb.edu/~weinig)
Midterm Examination: Closed book. (A single page of notes are permitted in the exam room.)
Final: Term paper integrating the material presented in class. Subject and format will be discussed in class.
Homework consists of assigned reading , research and written executive summaries to be submitted in class. Assignments may be found on the Web page or given in class. No handwritten papers will be accepted.
Texts: The Goal by Eliyahu M. Goldratt, North River Press
Strategy - A View From the Top “An Executive Perspective (3rd Edition) by
Cornelis . De Kluyver & John A. Pearce II
Grading: Homework & classroom participation 30%, Midterm 30%, Final 40%. The contemporary and changing nature of the lecture material makes ATTENDANCE MANDATORY. Two absences will result in a failing grade.
Internet students must e-mail all assignments other than the TERM PAPER. (FAX may be used in an emergency.) Use only “PLAIN TEXT ASCII” or MSWORD for homework.
Office Hours: Prior to class by appointment. Internet students by telephone - appointments arranged by e-mail.
THE GLOBAL ENTERPRISE
Syllabus: Fall 2009
SESSION 1, INTRODUCTION.
A. Enterprise is derived from the French word, entreprendre - implies a readiness to take risks. All business is at risk. ( If you don’t believe that all business is at risk – would you have imagined that GM would declare bankruptcy?)
1. A manufacturing enterprise must respond rapidly to changes. Action is required to cope with change to remain competitive in the global marketplace. (Freddie the Frog story.)
“You can’t manage what you can’t measure.” William Hewlett, HP
B. Manufacturing Methods (Part 1)
1. Craft Paradigm
2. Industrial Revolution (England - late 18th C.)
3. Frederick Taylor - science on the shop floor.
4. Mass production - Henry Ford
5. Post-industrial society theory is coming full-circle..
6. 20th Century industrial invasion of the U.S. led by Japan. (21st led by China)
Assignment: Read the article Taylor-Made by Robert Kanigel on Web site.
1. Write a 2 page executive summary of the article (see introduction to “Writing an Executive Summary” on website.) and explain how Taylor’s principals impacted our current globalized society. Give examples. Due 2nd session.
SESSION 2. PERFORMANCE MEASUREMENTS.
A. William Hewlett, (co-founder of HP,) “You can’t manage what you can’t measure.” (No single measurement or set of measurements can define the Global Enterprise.)
B. Methods of Measurement:
1. Financial Measurements: The SEC requires a minimum of three schedules:
Balance sheet, Consolidated Statement of Income and Loss, and Cash Flow.
2. Productivity Measurement: (Bureau of labor statistics definition: value of goods
manufactured divided by amount of labor input.)
3. Gross National Product (GNP) dynamic measure of change.
3. Quality Measurement - 6 sigma.; Yield; Productivity; Efficiency, etc.
4. Performance Metrics.
SESSION 3- BENCHMARKING
A.” The search for those practices that will lead to superior performance for the company.”
1. Benchmarking the competition
2. Benchmarking outside the industry.
3. Financial benchmarking.
SESSION 4 - Manufacturing Methods (part 2)
A. JIT System /Toyota Production Method.
1. Zero inventory myth
2. Kanban - push vs. pull
3. Kaizening - an evolutionary improvement program
4. Ideal lot-size of one.
B. From Fat to Lean to no Manufacturing: The Porsche Auto Company.
C. Cluster Manufacturing
D. Exporting manufacturing and IT (information technology) jobs. Is this a temporary condition? or economic entropy?
SESSION 5 -THE GLOBAL ENTERPRISE.
A. What is a Global Corporation?
B. Why should a Corporation go Global? Do Companies have a choice?
C . How to become a Global Corporation.
D. Culture - the major obstacle of successful globalization.
E . Problems of Global Corporations.
Ethics, Professional Practice, Human Resources, NIH Syndrome - not invented here.
(This syndrome is disappearing with the “Globalization of innovation.”)
SESSION 6 – ENTREPRENEURS – Can they create sufficient jobs to replace those lost due to increased Productivity and the Economic crisis?
A. Are all PRODUCT areas fertile for entrepreneurs ? Or should we look to specific areas?
B. Necessary requirements: product idea, proof of product viability.
C. Funding: early, middle and growth.
D. The life of the Entrepreneur.
SESSION 7 – PRODUCT DEVELOPMENT
A. Develop new products or die !
B. Product development - a potential corporate killer.
C. Time vs. Cost: Which is more important? Money can be replaced - not time.
D. Generation analysis of product development
E. The use of parallel teams to expedite global product development.
F. Taguchi Method for improved product development.
G. The impact of the Green Revolution on Product Design
SESSION 8. DESIGN METHODS & SUPPLY CHAINS FOR GLOBAL CORPORATIONS
1. Mathematical approach to TARGET COSTING. How to establish PRICE.
2. Models and simulation must replace Edisonian make, test, fix and start over method.
3. Tataku - pricing pressure used on suppliers.
4. More Products are destroyed by ROI analysis than by competitive pressure.
5. Using vendors in initial design. (Advantage of Keiretsus vs. Western supply chains)
6. Better control of business through Radio Frequency ID.
7. The growing role of 3PL companies? (3rd Party Logistics Companies.)
8. Remanufacturing methods - an integral part of globalized design.
SESSION 9. MIDTERM EXAMINATION
SESSION 10. CORPORATE REORGANIZATION - A NEVER ENDING PROCESS
1. Kaizening is evolutionary whereas re-engineering is revolutionary.
2. The five steps of re-engineering.
3. The Company Culture - Is it a strength or a weakness?
4. Can the U.S. auto industry adapt thru re-engineering? Or has its culture doomed it?
SESSION 11. Manufacturing and Marketing Strategies
1. Learning Curve Theory & strategies based upon its application
a. Cream and abandon strategy, e.g. Intel.
b. Pricing down the learning curve, e.g. Texas Instruments.
2. The Strategy of Speed - “First In Defeats Others” (FIDO), e.g. 3M
3. The strategies of scope and scale
4. The Hawthorne effect.
5. Impact of the Internet on corporate practices, e.g. purchasing: (Ford, GM, Daimler-
Chrysler, Renault & Nissan formed Covisint, a market place B-to-B company with $300
+ billion of purchasing power.) Is this the future & did it succeed? Obviously NO!
SESSION 12 - DEVELOPING A CORPORATE (or personal) STRATEGY
A. Strategy is a skill used in managing and planning for success.
1. The Mission Statement.
2. The Financial Objectives.
3. The Action plan.
4. Evaluate, mid-course corrections and start over.
B. Classical Strategy Development .
1. SWOT Analysis. (Strengths, Weaknesses, Opportunities, Threats)
2. Management 101.
A. Collect data.
B. Analyze data.
C. Formulate action plan.
D, Make Dam sure it happens.
E. Evaluate and amend.
C. So C. Some Strategy Techniques
1. American Management Association (AMA)
2. Boston Consulting Group (BCG Analysis.)
3. Strategy of Guerilla warfare - writings of Mao Tse Tung.
4. Weinig’s Manifesto
SESSION 13 CONTEMPORARY STRATEGIC THINKING.
Is there time for classical strategy development in the warp speed globalized business environment that exists today?
A. That which works is best. There is no single best method !
B. Building a legacy that will outlive one’s career.
C. Will competition in the future be different? How?
D. Competing for industry foresight.
E. Core competence. What is it? Can it be developed or changed?
F. WHAT COUNTS IS A WINNING STRATEGY - CORPORATE OR PERSONAL.
Strategies used by the Japanese post -WWII. “The Economic miracle.”
1. Low labor cost.
2. Scale based.
3. Focused factory.
4. Flexible factory
5. Monetary strategy. Yen/dollar relationship.
6. Strategy of TIME. (Doing all activities in less time than the competition yields a strategic advantage.) Example: Kyocera
Submit TERM PAPER
Sayonara !