THE DEVELOPMENT OF INNOVATORY PRODUCTION SYSTEMS I. .. Copyright CO 1999 IFAC 14th Triennial \VorId Congress, Beijing" P.R. China 14th World Congress of IFAC M-5e-04-5 THE DEVELOPME,NT OF INNOVATORY PRODUCTION SYSTEMS IN TURBULENT ENVIRONMENT Ivies Veia*, Vinko Belak**, and Zoran Babic** *[lniversity of/::Iplit, Faculty oj·ElectricaL f!,'ngineering, Mechanical Engineering and !.\/'avaIArchitecture: R. Roskovica bb l 21 000 Croatia E-mail_·iveza@adriafesb.hr **Universily o.fSplit, Facult)/ of Economics; Radovanova J3, 21000 Split, Craotia E-J.Wail: babic@oliver.efst.hr Abstract: In the last ten years several new conceptions for the design of production systems have been developed (Lean Fractal Business Process Virtual Factory etc.). As a country in transition Croatia is at the turning point between the planned economy and the market-based economy. It is therefore necessary during the process of privatization to restructure the existing enterprises and to introduce new organization structures. These structures must be adapted to the present situation regarding culture, the levels of education and technology:!, and other conditions. The paper describes the results of research performed so far regarding the new forms of organizational structures., as v.ell as the research being planned for the future. Copyright© 1999JF.A C KeyvlOrds: production innovation., business process., lean manufacturing., fractal factory, virtual factory_ 1. INTRODUCTION With the ailn of survival of enterprises in time and space in ever more turbulent global environment it is necessary to satisfy the needs of Cllstolllers considering price and delivery date. In tnost economic sectors there have been some ilnportant changes considering the tasks of enterprises during the last few years. These changes are the result of wide competition, changes of the existing and developnlent of new technologies.. as \'\ell as changes in customer needs. As a result of all this there is a need to increase the efficiency of enterprises. Only those "vha are cheaper, better, faster and can offer more innovations than the others can survive. Copyright 1999 IFAC In order to increase adaptability to customer needs:r there is a trend towards designing small, independent manufacturing units interconnected with intensive and synchronized communication. A research 'WOrk performed in Japan and West- European countries has shown that only interconnected organizational structures and processes can survive in rapidly changing "WOrld market. The follovving concepts have developed through this research: • Simultaneous Engineering (Eversheim, 1990), • Lean Production (Womack, et al., • Fractal Factory (Warnecke, 1995), ISBN: 0 08 043248 4 6286