World Class Manufacturing is a different set of concepts, principles, policies and techniques for

managing and operating a manufacturing company. It is driven by the results achieved by the
Japanese manufacturing resurgence following World War II, and adapts many of the ideas used by
the Japanese in automotive, electronics and steel companies to gain a competitive edge. It primarily
focuses on continual improvement in quality, cost, lead time, flexibility and customer service.

World Class Manufacturing is a process-driven approach where implementations usually involve the
following philosophies and techniques:

Make-to-order
Streamlined flow
Small lot sizes
Families of parts
Doing it right the first time
Cellular manufacturing
Total preventive maintenance
Quick changeover
Zero Defects
Just-in-time
Variability reduction
High employee involvement
Cross functional teams
Multi-skilled employees
Visual signaling
Statistical process control

Companies engaging in World Class Manufacturing strategies focus on improving operations, strive to
eliminate waste and create lean organizations. This often results in higher productivity. But these companies
also focus on speed of total throughput from order capture through delivery setting new standards for delivery
without the heavy dependence on inventory. Sequential methods of performing work are being replaced with
concurrent methods to compress time, and functional and hierarchical divisions of duties are being replaced by
team-driven activities.

Definition Aiming to compete for quality on a world wide market and

becoming competitive in global market A position of international
manufacturing excellence, achieved by developing a culture based on
factors such as continuous improvement, problem prevention, zero defect
 tolerance, customer-driven just-in- time production, and total quality
management 24 July 2012 2

3. Introduction Different set of concepts, principles, policies and

techniques Driven by results Primarily focuses on continuous
improvement in quality, cost, lead time, flexibility, reliability, innovation and
customer service 24 July 2012 3

4. Factors of WCM Flexibility Leads to Ownership Discipline Organization

(Team Work) Cell Organizatio Equality n De- layering Team Managem
Autonomy ent24 July 2012 4

5. Check Points for WCM (Contd) Timely delivery Knowledge of key

customers and competitors Authority and empowerment to staff
Elimination of central storage of direct materials and supply of purchased
material to the point of use without routine inspection Training and
development of existing employees 24 July 2012 5

6. Check Points for WCM (Contd) Reduction of set - up time and

economical batch sizes Active policy to help keep work areas clean, tidy
and uncluttered Culture of continuous improvement in customer service
Mechanism to quickly and effectively receive and evaluate suggestions
from all employees 24 July 2012 6

7. Objectives of Global Production Reduce costs ( labor, taxes, tariffs

etc.) Reduce risks ( foreign exchange) Improve supply chain Provide
better goods and services Attract new markets Learn to improve
operations Attract and retain global talent 24 July 2012 7

8. 5S Explanation When in A place for Clean and Make up Part of doubt

everything inspect or the rules daily work move it and inspect follow and
and it out Red everything through enforce becomes a Tag in its place
cleaning them habitTechnique 24 July 2012 8

9. Kaizen Continuous improvement involving everyone Business strategy

involves working together to make improvements without large capital
 investments Setting doable, replicable standards and then continually
improving those standards It is not all about incentives and rewardsit is
about the support given to front-liners to help them improve the way work is
done 24 July 2012 9

10. Lean Manufacturing (Contd...) Lean Manufacturing is a Team Based

continuous improvement process designed for long term maximization of
company resources Lean Manufacturing is an approach to achieve
manufacturing excellence based upon the continuous elimination of waste
Waste is defined as activities that do not add value to the product 24 July
2012 10

11. Lean Manufacturing (Contd...) Lean Manufacturing utilizes techniques

and principles that improve efficiencies of value added activities Value
Added Activities : Transform raw materials and information into parts or
products Non - Value Added Activities : Consume resources that do not
contribute to the physical changes of the product 24 July 2012 11

12. 7 Wastes Over production Waiting Transportation Unnecessary

inventory Inappropriate processing Excess motion Defects 24 July 2012
12

13. Pressures Requiring Companies To Become Lean 24 July 2012 13

14. Traditional Vs. Lean Manufacturing in Time Scale 24 July 2012 14

15. Characteristics of Lean Manufacturing Waste Elimination TAKT Time

/ Line Balancing Point of Use / Kanban Error Proofing Inspection Visual
Factory Flexible Low Cost Automation 24 July 2012 15

16. Results of Lean Manufacturing Reduced Costs Reduced inventory

Reduced WIP Reduced Cycle Times Reduced Scrap Improved Quality
Increased Productivity Improved Utilization of Space 24 July 2012 16
 17. Flexible Manufacturing Manufacturing system which allows flexibility
into the system to respond to changes. Two types - Machine Flexibility -
Routing Flexibility 24 July 2012 17

18. Advantages and Disadvantages of FM Advantages Reduced

manufacturing time Lower cost per unit produced Greater labor
productivity Greater machine efficiency Improved quality Increased
system reliabilityDisadvantages Cost to implement Substantial pre-
planning required 24 July 2012 18

19. Just In Time Manufacturing Just in Time manufacturing is a systems

approach to developing and operating a manufacturing system 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 24 July 2012 19

20. Just In Time Characteristics Accurate demand forecast Low

inventories Small lot sizes Quick / low cost setups Multifunctional
workers Reliable vendors Problem Solving Continuous improvement 24
July 2012 20

21. How does implementing WCM improve productivity24 July 2012 21

22. WCM Objective Safety Workplace Cost organizatio Quality

Maintenance Logistic deploy n mentMethod Total industrial Method Total
quality Total productive Justintime& std. engineering control & std.
maintenance Quality Technical Service Focus Productivity efficiency level
improvement Target Zero waste Zero defects Zero breakdown Zero
inventory Values People involvement, value creation, customer
satisfaction24 July 2012 22

23. WCM in action 52% elimination of ergonomic risks Before After24 July
2012 23

24. WCM in action Before After Inventory reduced Material delivered to

point of use 57% reduction in operator walk time 24 July 2012 24
 25. WCM in action Before After Improved work conditions 24 July 2012 25

26. Kanban Meaning Signboard is a concept related to lean and just- in-
time (JIT) production Kanban is one means through which JIT is achieved
Kanban cards are a key component of Kanban that uses cards to signal
the need to move materials within a manufacturing or production facility or
move materials from an outside supplier to the production facility 24 July
2012 26

27. Indian Scenario TVS Motors A leading two-wheeler manufacturer

Winner of the top quality award -Deming award Tata Motors Acquiring
Daewoo Motors-truck manufacturing in South Korea 24 July 2012 27

28. Indian Scenario Reliance Group Acquired Flag Telecom of USA

One of the largest refining capacities in the world Second biggest
producer of polyester fiber in the world-expecting to buy out Australias
largest polyethylene maker Quenos to become the largest global player 24
July 2012 28

29. Indian Scenario Aditya Birla group Acquisition of copper mines in

Australia Acquisition of Liaoning Black plant in China Acquisition of
cement business from L&T makes them 8th largest in the world 24 July
2012 29

Bibliography http://www.smthacker.co.uk/world_class_manufactu ring.htm http://world-class-

manufacturing.com http://www.leanrapid.com/manufacturing/world_cla ss.asp
http://en.wikipedia.org/wiki/Lean_manufacturing http://www.chrysler.com/en/