BPE3533 / BPE4143

Mohd Ghazali bin Maarof

Email: [email protected]
CHAPTER 4: M: +60107123936
Office: 1st Floor-Chain Office KKB222
FLEXIBLE RESOURCES
What is Resource?
An economic or productive factor required to
accomplish an activity, or as means to
undertake an enterprise & achieve desired
outcome.

A stock or available aspects (e.g., money, materials, staff,

& other assets), which are possessed & controlled by an
organization in order to function effectively & efficiently.
Which one is more effective & more efficient?
Correctness, accuracy & Time, cost, & resources
Effective: Doing the right things
quality attributes are used are critical to be
critical to be effective Efficient: Doing things right efficient
Effectiveness vs Efficiency
Efficiency Effectiveness
Definition Doing things right – are we Doing the right things – are we
performing activities the best producing the most
possible way? suitable/relevant product?
Focus Process – Is the project/ Output/Outcome/Impact – Are
organization performing these products with the highest
optimally? demand?
Orientation Objectives Results
Targets Organization’s internal Customer requirements – products
operational requirements – cost meet or exceed them & have no
& other resources utilization deficiencies.
Complementari Doing the right things right – Efficiency & effectiveness are mutually
ty reinforcing
Types of Resources

• Observable

Tangible • Their values can be determined accurately

• Example: machine, equipment, human, financial,
informational & technological resources

• Unobservable

Intangible • Their values cannot be determined accurately

• Example: company’s reputation, administrative
skills, etc.
Types of Resources
Physical Capital Human capital Company’s capital
Resources resources resources
• All physical • Training, judgments, • Company’s
technologies used, intelligence, structure, planning,
plant & equipment, relationship, controlling,
geographic location experiences & coordinating
& access to raw insights of individual systems, as well as
materials. employees. informal relations
among groups
within a company, &
between a company
& its environment
Key Characteristics of A Strategic Resource

It must be no strategically
It enables a firm to It cannot be obtained equivalent valuable that
apprehend of & apply It cannot be & replicated by disables competitors to
strategies that possessed by other competitors that do implement the similar
increase its companies not possess them strategies
performance

V R I N
Valuable Rare Inimitable Non-
substitutable
Flexible Resources

Flexible production line

Multi-functional
machines/equipment/tools

Multi-skilled workers
Flexible Production Line
Production line could be used to…
✓ Produce the variety or multiple variances of products.
✓ Perform multiple processes.
Flexible Production Line
Case in Toyota Indonesia:

Plant I: All the variants of Fortuner & Innova are

manufactured in a common production line with
the same route.

Plant II: All the variants of Toyota Vios, Yaris, &

Etios Valco are produced in one line.

Engine production plant: A common production

line is used to produce all types of engines.
Flexible Production
Line
“Around the 1990s; we applied batch
production (but in a minimum lot size). We
made Corolla, Corona, & Starlet. Each type
used different jigs. For example, once the 5
units of Corolla are completed, then the jig
must be replaced for the next product (i.e.,
Starlet). Once the 5 units of Starlet are
completed, then the jig was again replaced.
Finally, we improved. Now, one jig is used for all
variants, & we are producing in the ideal lot
size, one.”
Flexible Production
Line
Flexible production lines is a pre-
requisite for small lot production.

Small lot size production cannot be

performed successfully when production
lines are not flexible.
Multi-functional Machines/Equipment
Machines & equipment could be used to perform a number of operations.

Although there are differences in terms of product, the flexible machines &
equipment can be used to perform operations for different products.
Multi-functional Machines/Equipment
“Our production line is flexible; all the variants of Fortuner & Innova are
produced here. To get into the line, machines must be able to process all
variants of Innova & Fortuner”

“… tools are certain. Wheels for Innova & Fortuner are different, tools must be
designed in such a way. So that, it can assemble wheels for all variance of the
car.”
Multi-skill Workers
All the workers must be able to perform multiple jobs & operations.
Workers should handle multiple machines & equipment.
Multi-skill Workers
Shojinka
The number of operators in a shop floor can be altered (increased or
decreased) when production demand has changed (increased or
decreased).

Number of workers in a shop

floor can adapt to demand
changes.
 January February
Cycle time = 1 minutes per unit Cycle time = 2.5 minutes per unit
Number of workers = 10 Number of workers = 3
Number of workers may be decreased as the production volume
decreases
Activities to Ensure Worker Flexibility
✓ Training.
✓ Capability/skill mapping.
✓ Job rotation & promotion.
Training
Developing skills & knowledge that relate to specific useful
competencies.

Training is essential to strengthen the implementation of LM.

It is also important to ensure that skills of all workers are at the targeted
level.
Training

“This is the importance of trainings. An operator in a particular production

line, at least, should be able to do jobs in 3 or 4 different workstations. For
example, an operator can operate 10 machines. In his/her group, he/she is
still being planned to master more different machines”
Capability/Skill Map The worker is able to do the
job without supervision

All workers are leveled based Level 3 The worker has

on their skills Level 1 undergone multi
skill training

Level 2

Level 4 The worker is able to do the job,

but needs supervision

The worker masters the job & is

able to train others
Capability/Skill Map
Capability/Skill Map
Skill map helps to ensure how mastery an operator in performing
their jobs within a production line.

Job rotation & promotion are done

based on the skill map.
Job rotation & Promotion
In order to be multi-skilled, the workers must be rotated periodically, based
on the skill map.
If a worker has mastered a job, then he/she will be transferred to another
workstation to perform other jobs.
A worker is promoted, if he/she has been multi-skilled.
Job rotation & Promotion
“If the worker has been multi-skilled; after some time, he/she will be promoted
as a group leader. A group leader, at least, has mastered all the jobs in his/her
line... So, job rotation is advantageous not only for multi-skilling workers, but
also for carrier-up.”
 Conclusion
As having flexible resources is compulsory in an LM system, a company
should use multi-functional lines, machines, tools, & equipment,
besides ensuring multi-skill of workers. The skills are developed
through training, tanoko system, & job rotation.
 Faculty of Industrial Management
Universiti Malaysia Pahang
26300 Gambang, Pahang Darul Makmur
Tel: +609 549 2166 Fax: +609 549 2167
www.fim.ump.edu.my