WORLD CLASS

MANUFACTURING
 World Class Manufacturing
(WCM)
Presented By Roll
Numbers
1) Anita Agarawal 02
2) Dhawal Ambani 03
3) Sushma Bhandari 04
4) Gaurang Bharkhada 05
5) Sanjog Devrukhkar 11
6) Shrinivas Krishnamurty 19
7) Arun Singh 50
Presented To
Kedar Sawant Sir
(MFM Sem-II : 2008-11)
 Meaning & Scope

• It refers to the practice followed in a

manufacturing organizations, in order to
consistently deliver exceptional
performance, frequently in excess of
expectations.

• World Class Manufacturers are those

that demonstrate industry best practice.
 Criteria
There are two
overriding criteria
when using this
checklist to judge
whether your company
can be regarded as
World Class

1) How does the

company compare with
its best competition?
2) Has the company
Few Top Indian Manufacturing
Companies
• Aditya Birla Group
• Hindustan Lever
Network
• Mahindra & Mahindra
• Bombay Dyeing
• Reynolds India
• Hindustan Paper
Corporation Ltd
• Haldia Petrochemicals
• Emani Group
• Mittal Dhatu Rashayan
Udyog
 How a WCM is achieved
• Develop the awareness of the need to
make the transition to World Class
Manufacturing

• Develop the ability to search for relevant

tools and to apply them effectively

• Monitor progress so that an improvement

program can be systematically utilized.
 Implementing WCM :
Tools to Measure and
Success
Record
WCM Tools
Progress
Measurement
1.
Factors Cost Just-in-time logistics, ·Indicators
Inventory holdings
control quality at source and · Absence of defects and
supply chain rework
2. Quality management tools
Statistical Process Cost return
· Customer of incoming
rates
Control, fool-proofing ·materials
Internal reject, rework &
to prevent errors, scrap rates
Pareto analysis of · Supplier quality
types and causes of Performance
3. production defects
External Just-in-time logistics, · Time from customer
flexibility quality at source and order to delivery
supply chain · Delivery frequency &
management tools reliability to customers
· Delivery frequency and
reliability of suppliers
Success WCM Tools Measurement
4. Internal
Factors Cellular layouts, single unit ·Indicators
Machine changeover times
flexibility flow, production pulling, · Batch and lot sizes
Kanban signaling system, · Inventory levels
single-minute exchange of · Throughput time through
dies for rapid machine factory
changeover, supply chain · Machine utilization levels
management
5. Capacity • Multi-tasking, · Numeracy and literacy
to change • Multi skilling, levels
(Human • Quality circles, · Labor/management
resource • Kaizen groups, turnover levels
development) • Training, · Absenteeism rates
• Incentive schemes. · Training expenditure and
types of training
· Employee development
· Suggestion
6. Innovation Concurrent engineering, ·schemes/continuous
R&D expenditure
capacity new product development improvement
· Proportion of sales from
techniques new products
Contrasting Mass Production
& WCM
Critical Control Mass World Class
Points Production Manufacturing
Logistics · Large batch · Single unit flow
production production
· Just-in-case · Just-in-time
inventories inventories
Quality · EndSpecialized
of line · Flexible machinery
Quality-at-source at
machinery
inspection and
each part of production
· Reworking of process rapid machine
Work ·defects
Division of labor ·changeover
Multi-tasking and
organisation between skilled multi skilling
and · Continuous
unskilled workers improvement in green
· Specialized R&D areas as well as
and specialized staff
product
 The Grades for WCM
• "W“ - World class
• "X“ - Very good but not
quite world class –
(country class)
• "Y“ - Better than many –
(city class)
• "Z“ - Poor – (village
class)
 WCM Check list
Q1) Do you have a 99% or better
level of customer service (or
product availability)?
Grade Criteria

W 99% or better customer service level (on

time in full or availability).
X 95% up to 99% customer service.

Y 90% up to 95% customer service.

Z Below 90% customer service.

Q2) Does everyone in the company
know who the key customers are
and what differentiates the
company’s products and services
from the competition?
Grade Criteria
W Everyone knows key customers through a
new employee induction scheme and regular
updates, meetings, notices etc.
X Most people know key customers.
Y Managers know key customers.
Z Customers known mainly on a "need to
know" basis.
Q3) Do all staff who are in contact
with customers have the authority
and empowerment to resolve
customer problems?
Grad Criteria
e
W A person answers telephone calls within 4 rings
and takes responsibility to deal with the call
either immediately or by getting back to the
caller within 24 hours. Similar standards are
X used for e-mail
A person and written
answers complaints.
telephone calls and takes
responsibility to deal with the call either
immediately or by getting back to the caller
within 5 days. Similar standards are used for e-
Y mail and written
Customer complaints.
problems are dealt with as soon as
Z possible.
Many customer problems are outstanding or not
satisfactorily resolved.
 Q4) Do Kanban control your supply
chain?
Grad Criteria question
e
W At least 75% of your shipments to customers
controlled by Kanban or vendor managed
inventory (i.e. shipped / delivered based on
customer usage) or you are able and willing to
X make
Some Kanban
but lessshipments
than 75%if of
requested.
shipments under
Kanban control or you are probably able to
make Kanban shipments if requested.
 
Y You may be able to make Kanban shipments if
requested.
Z You would not make shipments under Kanban
control.
Types of Operation which creates
a WCM
The Kanban Units
Control Concept

Kanban control Kanban control. The Kanban

means that the Movement of messages can
authority to parts shown in take the form of
make or move blue, circulation an e-mail, fax,
an item is of Kanban in red. card, empty
based on that Machines are container or
item's usage shown as circles require you to
unless there and buffers as visit their plant to
has been a triangles. The replenish their
properly last buffer is the stock of your
approved and finished goods products (usually
 Just In Time (JIT)
Just in Time manufacturing is a systems approach to
developing andManufacturing
operating a manufacturing system.
We will take an example of banking process:

In short, JIT means making what the market wants,

when it wants it. JIT has been found to be so effective
that it increases productivity, work performance and
product quality, while saving costs
                                         
JIT Improvements to
Manufacturing`
In Summary, JIT
Systems
requires
Changes in:
• System Design
• Organization
Attitudes and
Structures
• External
Relationships
T • New
ime
Management
Priorities
 CONWIP control

CONWIP stands for Once the parts are

Constant Work-In- released, they are
Process, and processed as quickly as
designates a control possible until they wind up
strategy that limits the in the last buffer as finished
total number of parts goods. One way to view this
allowed into the is that the system is
system at the same enveloped in a single
time Kanban cell: Once the
consumer removes a part
CONWIP control. from the finished goods
Movement of parts inventory, the first machine
Factors which can make a
WCM
Some other factors
 Conclusion: Control of
Operations
Before commencing implementation of control
systems there are always five beneficial things to
do which will make any method of control easier
to implement and make the system work better
operationally
(Generally world class manufacturing businesses
have done these things) 
Reduce time wasted in setting and
reduce set up times
Form Natural Groups (cells)
Reduce throughput times
Postpone product mutation
Remove the trivial many, to focus on