Exploiting the concept of a manufacturing system part II: Principles and origins of the managing‐by‐projects engineering change methodology

Purpose – The purpose of this paper is to establish the influence and discipline of process control and systems engineering theory plus engineering practices in the chemical process industry on current operations management development. Part I has laid the requisite groundwork for this paper; Part II covering the concept of a manufacturing system, its evolution into the managing‐by‐projects (MBP) methodology, and application to the extended enterprise. Later, Part III will concentrate on the usage of MBP within individual manufacturing and other businesses. Hence, the concentration will then be on cellular operations and the “natural grouping” task force genre. Design/methodology/approach – The paper is based on experiential case study outputs from a large number of European and international organisations. Benchmarking of total business performance is shown to be a driver of change. Via the systems approach, it is shown how a set of interlinking programmes are planned and executed to enable comprehensive improvements in business performance. The core characteristics of MBP are detailed plus how systems engineering principles can enable effective BPI. Findings – MBP is an holistic approach. It can start at the competitive achievement plan level to scheme and implement total business change executed by internal task forces. The procedure is illustrated for an international enterprise via results obtained from re‐organising a multi‐site auto components business. Large gains in key performance indicators are evident. Research limitations/implications – A key finding is the importance of generating internal experience and competence. Learning has to belong to the organisation, not some external group. There must be careful sequencing of projects, otherwise there will be “indigestion”. Elephants should be eaten in bite‐sized chunks. Practical implications – This original concept has now evolved after some 30 years and proven routes to implementing MBP have been established. Furthermore, a vast quantity of supporting material is now available. Setting up an effective, and organisationally relevant user‐friendly open‐learning facility is a top priority. Originality/value – The originality lies in the concept of a manufacturing system. But the innovation manifests itself in the successful transformation into the MBP methodology for engineering effective change in a wide range of organisations.

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