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The application of axiomatic design and lean management principles in the scope of production system segmentation

Systematic design and evaluation of segmented production system structures is the subject of this paper. Recently emerged paradigms of Lean Management and Business Process Re-engineering call for adaptation of a production system's organizational structure to be more reactive to a volatile and diversified market behaviour. One opportunity to optimize production system design is segmentation of the manufacturing enterprise into small, flexible and decentralized production units. The presented segmentation procedure utilizes an Axiomatic Design framework and supports Lean Management practices following strategic, organizational, and technological design aspects. A case study exemplifies the developed methodology to improve the competitiveness of a manufacturing company.