Two world pioneers in the outline and fabricate of car brake parts

Case StudyTwo world pioneers in the outline and fabricate of car brake parts, Akebono Brake Industry Co., Ltd. of Japan and Delphi Automotive, shaped an interesting organization and established Ambrake Corporation to deliver innovatively propelled, amazing exactness brakes. Ambrake has been a win, harvesting gigantic prizes from its proficient operations. It has kept up its position as a noteworthy power in the brake business.According to Mark Mahoney, Ambrake president, the three elements involved in JIT productionare “hardware,” “software,” and “humanware.” The hardware element covers the physicalaspects of the plant, including equipment design and cellular manufacturing. The softwarefocuses on product processing and systems, including material and information flow, pullsystems, quick changeover, built-in quality, and workplace organization. Humanware, however,is the essential element that makes the organization operate as it should.Four Pillars of JIT HumanwareSeveral components are necessary to shape the human element in an organization so that JIT is asuccessful production philosophy. In general, the humanware technology of JIT consists of fourProduction and Operations Management (MGT 613)Assignment# 4 Semester Fall 20164components: (1) education and training program, (2) development of a cooperative environment,(3) rewards and incentives program, and (4) open communication and worker involvement.The company owes much of its success to the partnership between JIT and human resources.Since Ambrake’s manufacturing philosophy is consistent with the Just-in-Time philosophy, mostsegments of its operation complement the ideas surrounding JIT.1) Education and Training ProgramTraining is the first component in implementing and maintaining a Just-in-Time manufacturingsystem. By incorporating an effective training system, the company ensures that both managersand workers understand the JIT approach and that a new culture and attitude evolve that areappropriate for JIT manufacturing. Education and training programs should maximize thepotential of each individual employee as a productive resource in the organization. Continuoustraining supplemented by formal classroom study is an innovative way to emphasize a long-terminvestment in human resources and its contribution to the company’s success.Training for ManagersIn some successful organizations, key managers have been sent to Japan for a few weeks toobserve JIT at its ideal level of operation. They worked side by side with management to learnthe task and culture of JIT. They also learned what benefits can be expected if JIT is usedproperly and how JIT is important to a company’s continued success.When companies switch from traditional manufacturing to JIT, they must have some idea of thechanges that will be required of them and their employees. When managers have been fullyeducated in the technical aspects of JIT, as well as the way the human element will be affected,they are in a better position to prepare their subordinates for the impending changes andformulate creative ways of smoothing the transition.Training for EmployeesEmployees, too, must be trained to work well in an entirely new philosophy of manufacturing.Techniques that instill a philosophy of teamwork and collective effort should be used.Employees must understand what is required of them and why their actions are important for thelong-run health of the company.Trainers need to point out the fact that the JIT manufacturing environment is probably verydifferent from ones that most employees have worked in before. Employees should beencouraged to view JIT as an opportunity to improve the company’s competitive position as wellas an opportunity to secure greater job security for themselves. Training methods used forworkers at Toyota Motor Manufacturing include on- the-job training charts as well as classroomstudies.Ambrake Approach to Training and EducationAmbrake begins training at the very beginning. The company hires and subsequently trainsmulti-functional workers. Even before applicants are hired, they go through an assessmentprocess that tests math skills, blueprint reading, and team-building skills as well as the ability toapply lessons in a workplace environment. Ambrake uses these tests to determine whetherapplicants possess the attributes that would make them successful in the Ambrake environment.Probably the most important characteristic an applicant could possess is the ability to workwithin teams.Production and Operations Management (MGT 613)Assignment# 4 Semester Fall 20165Pre-employment training lasts for two weeks. If the associate is hired, on-the-job training iscontinued for approximately 16 weeks. All associates are cross-trained as time progresses.Ambrake offers management development as well as floor and office worker training. Thecompany has recently changed pre-employment training through an action circle, with a target tomake the process more consistent with work practice. With the continuing tight labor market,each portion of the selection process has become increasingly critical.An interesting point is that new employees are not trained by managers or a trainer from thepersonnel department, but by group leaders and selected associates who have been designated ascertified trainers.Mr. Mahoney feels that these associates provide more effective training becausethey work with the job every day and are intimate with the details of the job. He feels they are ina better position to train, and that employing them as trainers is more beneficial to the company.2) Cooperative EnvironmentA cooperative environment is probably the most influential factor in the implementation andcontinuance of a thriving JIT system .Without the atmosphere the team concept generates, JITcould very well fail. In most of the literature, the importance of teamwork is heavily stressed. ForJIT to be successful, the company culture must engender teamwork, cooperation, and apartnership spirit within everyone in the organization.At first, this may not be as easy as it sounds. Every man and woman in the United States isexposed to competitive performance very early in life. In school, good grades are demanded;sports teach that winning is all that’s important; after college, students compete with one anotherfor the “best jobs”; finally, managers and employees compete for better bonuses.All of these activities encourage individual achievement and discourage teamwork andcooperation. For employees in a JIT environment to participate effectively, they must be able towork together. Specific emphasis must be put on teamwork so that people move away fromdeeply ingrained individualistic attitudes and toward a team focus. To develop a team concept,the company must offer programs to create a cooperative environment. Effective techniquesinclude the following:• Collecting diagnostic information. Use methods such as administering questionnaires,conducting interviews, and so forth to collect information about current feelings and attitudes.Managers can then work with the results to see what needs “fixing.”• Employing team-building activities. Use activities that help individuals who work in groupslearn how to communicate and solve problems together.• Fostering a sense of equality. Employees should feel they are equally as important asmanagers. Some methods for bringing this about are providing a common cafeteria, having noprivate offices or reserved parking areas for managers, and encouraging everyone to wear thesame uniform.Ambrake Approach to Developing a Cooperative EnvironmentAmbrake’s entire production system is based on self-directed teams with managers in the role ofresource providers, facilitators, and coaches. Mr. Mahoney comments that self-directed teams area very effective way to encourage creativity and input, and essentially turn associates intoentrepreneurs.Production and Operations Management (MGT 613)Assignment# 4 Semester Fall 20166Ambrake fosters the cooperative environment through numerous techniques. Managerscommunicate to employees that they are all working for a common goal and that nothing in theorganization can be achieved singly. Associates will succeed as a group, not as individuals.One specific technique is the formation of task forces. Associates on the task forces volunteertheir own time to help improve anything that affects all associates. Some issues are work related,but not all are. Family activities, ways to improve production workstations, or any concernsabout uniforms or safety are examples of issues involved.Ambrake provides uniforms for all associates to wear, including top management. Mr. Mahoneybelieves that this practice creates a sense of equality because there are no visible distinctionsbetween people in the company. It also helps all employees feel that their ideas matter, that noone is more important to the company’s continued success than they are.3) Rewards and IncentivesReward and incentive programs, the third component of a successful JIT implementation, aresometimes very controversial. Often, these programs can determine the degree of conflict oraccord between units in the organization. For example, when employees receive rewards basedon achieving a company goal, a cooperative environment is encouraged and harmony is morelikely. However, if programs are based on output per person, competitiveness comes back intoplay and all efforts to support JIT teamwork are lost. Managers must be certain that rewardsystems are geared toward group activities and not toward individual ones. When programs arebeing designed, the focus should be on group participation, contribution to problem solving, andattainment of company goals.Ambrake Approach to Rewards and IncentivesAlthough performance-based pay programs are under evaluation, Ambrake has not previouslytied compensation for all associates directly to the achievement of organizational goals. Themotivation to achieve targets has been driven by the desire for job security and inclusion as acontributing member of a successful team. By providing a worthy culture and a fair workingenvironment, Ambrake fosters continuous improvement and this, in turn, enables the associatesto maintain their job security.4) Open Communication and Worker InvolvementCommunication and worker involvement together form the fourth essential component of JIT’ssuccess. In short, employees must feel appreciated, have pride in their work, and feel that thecompany would not be where it is today without them. Being able to voice their ideas as a part ofthe process makes it possible for employees to feel that way. They must be active in decisionmaking and quality control and be able to contribute to any aspect of their jobs. Managers mustcreate a climate in which their people are treated extraordinarily well.Worker involvement brings pride to employees’ work and helps provide a sense of job security.Companies see better results with better attitudes and initiatives. Employees are able to generatenew ideas and enhance their problem-solving skills, and the level of responsibility for allworkers is increased.Ambrake Approach to Fostering Communication and Worker InvolvementMr. Mahoney agrees that communication is a very sensitive aspect of the work environment. AtAmbrake, associates have four different channels to consider for communicating their ideas:Production and Operations Management (MGT 613)Assignment# 4 Semester Fall 20167• Ambrake has an open door philosophy. If associates have any problems or suggestions, they areencouraged to approach any level of management to review their concerns.• The company sponsors a hotline that associates can call if they want to voice their opinionsanonymously. The answer or solution is posted on a designated bulletin board.• Associates are encouraged to use the line performance board. This bulletin board containscharts on which employees can write their ideas, which are then reviewed by the appropriateteam leader.• Ambrake uses action circles, synonymous with the quality circles already in use at many othercompanies. These circles gather, voice opinions, and solve concerns together. Mr. Mahoneyestimates that at any given time four to seven action circles are active within the organization.Importance of Worker FlexibilityThe flexibility of workers is also an influential part of JIT manufacturing. Schroeder definesJust-in-Time as the elimination of waste in the production process by utilizing the full capabilityof the workers. Several authors agree that employing multi-functional workers provesadvantageous in a JIT system.Quality is enhanced and the operating process is more flexible. Operating processes can bechanged to meet demand requirements, and feelings of worker alienation and boredom as well asergonomic problems can be reduced. In addition, flexibility gives workers the opportunity toaccept more job responsibility, increasing their feelings of value to the company.Since JIT is based on a cellular layout, each worker is able to do all the necessary tasks within acell. The worker, therefore, controls volume, quality and, in some cases, financial performance.Within Ambrake’s continual training, cross-training also takes place. The job enlargement allowsassociates to prolong their employment and gain responsibility and a feeling of importance.Summary and ConclusionJIT emphasizes superior organizational values and philosophies, long-term strategic goals, atwo-way communication system, cooperation, harmonious relationships, functional structures,strong commitment and loyalty to the organization on the part of its members, and a consultativedecision-making process. It is important to emphasize that the success of JIT is not the result ofcultural, structural, or environmental factors, but rather success stems from planned managementactions. It is the discipline, understanding, dedication, confidence, and continuous striving forimprovement that make JIT successful. All of these qualities, which should be evident in everyemployee, can be engendered by proper human resource management.The company continually develops the Ambrake production system (APS), which is modeled onthe Toyota system. APS is the driving force in manufacturing, and it is how Ambrake defineswork practice in the plant. Implementation of APS is a never-ending process: The company is“always looking for new ideas and special talents to maintain competitiveness”.APS is designed to promote kaizen, the practice of continuous improvement. Kaizen helps toeliminate waste and, therefore, makes jobs easier and safer by eliminating anything that hinderswork. The corporation’s aim, using truly efficient work methods to produce zero defects, isthereby achieved.Production and Operations Management (MGT 613)Assignment# 4 Semester Fall 2016In summary, Ambrake’s manufacturing philosophy is based on three goals: flexibility,teamwork, and continuous improvement. By following a participative management style basedon mutual respect, fairness, and trust, Ambrake is able to achieve these goals and create a truly“open” atmosphere that makes Ambrake associates want to contribute. They help to provide themotivation for everyone to work together to achieve a common goal of excellence.Questions:1) Briefly discuss the role of the three elements in JIT production in the light of thiscase study.(3)2) Discuss the importance of training and education with reference to Ambrake’s JITproduction system.(4)3) Creating a cooperative environment is a key factor for the success of a JIT system.How did Ambrake ensure the existence of a cooperative environment? (3)4) How did Ambrake make it possible to create an effective communication among themembers of a JIT team?(4)5) What are the various benefits you perceive as being the head of a JIT team that theimplementation of a JIT system can bring?(6)