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More About This Textbook
Overview
This newly revised edition helps today's manufacturing companies face the challenges of a global marketplace where every part of the operation must become more efficient to enhance the bottom line. Based on the results and conclusions of an applied research project of process manufacturing operations directed by the author, Bottom-Line Automation presents an overview of more than 30 years of industry trends, pointing out the strengths and pitfalls of each. The book also explains how manufacturers selected automation technology suppliers for state-of-the-art technological features in their systems rather than for the improvements the technology could offer the manufacturing operation. New topics in the book discuss the economic optimization of industrial assets.
Key findings include the fact that returns on automation investments were rarely, if ever, calculated. In fact, accounting systems were not even capable of measuring the performance offered by process automation systems. The author explains a strategy for measuring and improving automation system performance for the ultimate goal--the bottom line, and provides case studies of how such a strategy was implemented in three process manufacturing organizations. The author brings more than 30 years of industry experience, education, and research together in this unprecedented work.
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Table of Contents
List of Figures ix
List of Abbreviations xi
Foreword: A Solution Without a Problem xv
Chapter 1 The Drive to Economic Performance 1
Globalization - What It Takes to Survive 1
Pathway to Performance 4
The Technology Trend 5
The Quality Trend 8
The Accounting Trend 10
The Convergence 15
Notes 15
Chapter 2 Technology and the Bottom Line 17
The Technology Trend 17
Technology for Manufacturing 18
Technology for Technology 21
Computer Integrated Manufacturing (CIM) - A Noun or a Verb? 28
CIM in the Process Industries 29
Lights Out Manufacturing 33
Labor and Education 36
Technology for the Bottom Line 43
Notes 52
Chapter 3 Quality and the Bottom Line 53
The Quality Trend 53
Quality for Manufacturing 55
SQC in Manufacturing 59
Quality for Technology 64
SQC Fever in the Process Industries 65
Quality for the Bottom Line 68
The Convergence of Lean Manufacturing and Quality Improvement 73
Lean Manufacturing Concepts 74
Lean Process Plants 76
Notes 79
Chapter 4 Cost Accounting and the Bottom Line 81
The Cost Accounting Trend 81
Cost Accounting and Manufacturing 83
Cost Management Systems 91
Accounting for the Bottom Line 94
Dynamic Performance Measures 102
Dynamic Performance Measures and Accounting 108
Notes 117
Chapter 5 The Convergence 121
The Technology Trend and Dynamic Performance Measures 122
The Quality Trend and Dynamic Performance Measures 124
The Accounting Trend and Dynamic Performance Measures 126
The Convergence 128
A New Management Paradigm 129
Notes 132
Chapter 6 The Economic Optimization of Industrial Assets 135
Introduction 135
Primary Plant Floor Functions in Industrial Operations137
Performance Measures for Primary Plant Floor Functions 139
Plant Asset Analysis 141
Human Assets 146
Traditional Approaches to Optimizing Plant Assets 147
Fundamentals of Mathematical Optimization 150
Traditional Approaches to Industrial Optimization 152
Optimizing Plant Assets for Business Performance 157
Asset Set Optimization 160
Requirement for Performance Vectors for Asset Sets 162
Business Value Analysis 165
A Pragmatic Approach for Optimizing Business Value from Plant Assets 167
Barriers to Deployment of Business Performance Optimization 170
Chapter 7 Case Studies 173
Introduction 173
Case Study 1 Dynamic Performance Measure Program at a Major Pharmaceutical Company 174
Case Study 2 Dynamic Performance Measures and Culture at Dynegy Midstream Services 188
Lessons Learned 193
Notes 196
Bibliography 197
Index 209