A PRESENTATION
ON
QUICK RESPONSE

MANUFACTURING

UNDER THE GUIDANCE OF

DR. V.R. KOMMA
MNNIT, ALLAHABAD
PRESENTED BY:
MANEESH MISHRA
2017PR09
 

INTRODUCTION

 Shorter lead
lead times
tim es improve quality
quality,, reduce cost and
eliminate non-value-added waste within the
organization
organization’
organiza
while simultaneously increasing the
tion’ss competitiveness and market share by
serving
ser ving customer
customerss better and faster
faster..


Companies making products in low or varying volumes
have used QRM as as an alternative or to ccomplement
omplement oth
other
er
strate
strategies
gies su
such
ch as Lean Manu
Manufactu
facturing
ring,, Total qu
quality
ality
manag
man ageme
ement,
nt, Six Sig
Sigma
ma or Kai
Kaizen
zen..
 

HISTORY
QRM is rooted in the concept of Time-based


competition (TBC) pioneered by Japanese enterprises in

the 1980s and first formulated by George Stalk Jr.

 It seeks to compress the time require

requiredd to propose,
develop, manufacture, market and deliver products.

 The concept of Quick Response Manufacturing (QRM)

 was first dev
developed
eloped in the late 11980s
980s by Rajan Suri, at the
time professor of Industrial and Systems Engineering at
the Un
Univ
iversity
ersity of Wiscons
Wisconsin-Mad
in-Madison.
ison.
 

PRINCIPLES OF QRM
 Singularr focus on lead ti
Singula time
me reduction


Focus on manufacturing enterprise.

 Companywide approach reaching beyond shop floor

to other areas such as offi
office
ce operations
operations and the supply
chain

 Use of cellular organization structure

structure throughout the
business with more holistic and flexible cells
 


Inclusion of basic principle
Inclusion principless of systems dynamics
dynamics to
provide insight on how to best reorganize an
enterprise to achieve quick response
response..

 Specif ic QRM principle

Specific principless on how to rethink
manufacturing process and equipment decisions.

 Manufacturing Critical-path Time (MCT) metric to

measure lead times.
 

QRM Strategies and Tools

 Lead time as a management strategy 

Reasons for increased lead time:

 Products and product orders require long routes through

numerous departments.

 Focus on efficiency
efficienc y and resource utilization encourages
 workers
 wor kers and managers
managers ttoo build
build backlogs,
backlogs, slowing
slowing the
response to customer requests.
 

 Trying to minimize costly machine setups, managers and

 workers
 wor kers resort to running larg
largee batch sizes. Larg
Largee bat
batch
ch
sizes result in long run times, leaving other jobs waiting
and increasing lead times
 Making large product quantities to stock leads to high
inventory.
 Low skill levels lead to low quality and high levels of
rework.

 All these factors

factors contribute to long lead times,
ultimately resulting in waste throughout the enterprise
such as excessive forecasting, planning, scheduling,
expediting
exped iting,, wo
work
rk in pr
progr
ogress
ess (WIP)
(WIP),, finished g
goods
oods co
costs
sts
and obsolesc
obsolescence.
ence. These increase the o
over
verall
all costs and
lower the organization’s competitiveness.
 

 Manufacturing Critical-path Time (MCT)

 QRM’s strong focu

focuss on lead time reduction requires a
comprehensive definition of lead time.

 To acc
accomplish
omplish this, QRM iintroduces
ntroduces Manufacturin
Manufacturingg
Critical-path Time (MCT).

 It is based on the standard critical pat

path
h method;
defined
def ined as the typical amount of calendar time from
 when a customer creat
creates
es an order
order,, until the first p
piece
iece
of that order is delivered to the customer.
 

 Organizational structure
QRM requires four fundamental
fundamental structural changes to
transform a company
company organized
organized aaround
round cost-based
management strategies to a time-base
time-basedd focus.

 Functional to Cellular : Functional departments

must be dissolved. In their
the ir place, QRM cells become
the main organizational unit.
unit. QR
QRM M cells are more
f lexible and holistic in their im
implementation
plementation
compared to other cellcell concepts, and can be applied
outside the shop floor
f loor
 

 Team Ownership : Top-down

Top-down Control to Team
control of processes by managers and supervisors in
departments needs to be transformed to a decision-
making structure in which QRM cells manage
themselves and have ownership of the entire process
 within the cell
 Specialized Workers to a Cross-trained
Workforce: W Work
orkers
ers need tto
o be trained to perform
multiple tasks

Efficiency/Utilization Goals to Lead Time
Reduction: To support this new structure, companies
must replace cost-based goals of efficiency and
utilization with the overarching goal of lead time

reduction
 

QRM CELL
 The main building block of the QRM organization is the
QRM cell.
cell. Extending the conc
concept
ept of cellular
manufacturing, QRM cells are designed around a
Focused Target
Target Market Segment (FTMS)
(FT MS) – a segment of
the market in which shorter product leadlead times provide
the company with maximum benefits.
 Resources in a cell are dedica
dedicated
ted (on
(only
ly to be used for jobs

in the cell),
other) collocated (located
and multifunctional in close
(cover proximity
different to each
functions).
 QRM cells complete a sequence of operations ensuring
that jobs
job s leave the ccell
ell completed and
and do not nee
need
d to
return.
 

 The work organization in QRM cells is based on team

ownership. Provided with a job and a completion
deadline, teams can decide independently on how to
complete the job.
 The main performance measure for a QRM cell is lead
time as defined
defined by MCT
MCT.. T
To
o measure MCT redu
reduction,
ction,
managers can use the QRM number
number,, a metric d
designed
esigned
to show management lead time trend
trendss for ccells.
ells.
 

SYSTEM DYNAMICS
 System dynamics (SD) is an approach to understanding
the nonlinear
nonlinear behaviour
behaviour of comple
complexx systems
systems ov
over
er time
using internal feedback loops, table functions and time
delays.

 In QRM, the product-focused cell structure has to be

complemen
complemented
dynamics inted by ato
order tothorough
thorough
make understanding
better decisions toof system
reduce lead
times.
 


Create spare capacity 

Many cost-based organizations aim for machines and

labor to be utilized at close to 100% of capaci
capacity
ty.. QR
QRMM
criticizes this approach as counter-productive to lead
time reduction based on queuing theory
theory,, which sshows
hows
that high utilization increases waiting times for

products.
demand andIn order tto
o beQRM
products, able to handle
advises high variability
companies to in
operate at 80 percent capacity on critical resources.
 

Optimize batch sizes

Common efficiency
efficiency measures encourage production of
parts in large batch sizes. From the QRM perspective,
large batch sizes lead to long waiting times, hi
high
gh WIP
and inv
inventory
entory,, and ultimately long le
lead
ad times. Long
lead times
times in turn result in mult
multiple
iple forms of waste
and increased
increased cost as described above. Thus, QRM
encourages enterprise to strive towards batch sizes
that minimize lead times
 

QRM versus Lean Manufacturing

  All management
management appr
approaches
oaches hav
havee a valid insig
insight,
ht, but
QRM and lean manufacturing have a basic conflict.

• QRM focuses
focuse s on lead time while lean focuses
focuses on cost
reduction.

• QRM mostly
mostly focuses on one objective and llean
ean tries
to focus on all objectives at the same time.
 

Application
QRM creates a unified management strategy for the
entire enterprise. Extending beyond traditional efforts
to optimize shop ffloor
loor operations, QRM applie
appliess time-
based management principles to all other parts of the
organization.
 Office Operations


Material Planning
 Production Control
 Supply Chain


New Product Introduction

 

IMPLEMENTATION
QRM theory
the ory recommends following four common
steps when implementing QRM:

 Creating a QRM mindset

 Changing of organizat
organizational
ional structure

Inclusion of syst
system
em dynamics
 Enterpri
Enterprisewid
sewide e expa
expansion
nsion of QRM
 

CENTER OF QRM
 Founded in 1993 by Rajan Suri, along with a few U
U.S.
.S.
Midwest companies and academic colleagues at the
University of Wisc
University Wisconsin-Madison,
onsin-Madison, the Center
Center for Quick
Response Manufacturing has been a driving for
force
ce in the
development
development and implementation of QRM.

 Organized as a public-private consortium including

faculty,, studen
faculty students
ts and company members, the Cen
Center
ter has
assisted more than 220 companies in applying QRM
principles
princi ples over the past 20 years.
 

ADVANTAGES
  Allows employees
employees to fix pr
problems
oblems acro
across
ss bounda
boundaries.
ries.

 Gain feedback
feedback from all level to solve problems.

LIMITATIONS

 Reduces focus on task and time

time consuming.

 Generate potential conflicts between groups.

 

CONCLUSION
 A main objectiv
 objectivee with custom develop
development
ment
and production of specialized products is
lead-time. Toworks
process that do this,
withefficiently, focussystem,
your current on a
this is what QRM represents. When this is
put into place, you not only experience
shorter lead times, but increased profits and
satisfied custom
customers.
ers.
 

REFERENCES
 Stalk Jr.,
Jr., Ge
George
orge (1988). ""Time
Time – The Next Source of
Competitive
Competiti ve Advantage".
Advantage". Harvar
Harvard
d Business
Review. 66 ( July/A ugust): 41–51.
July/August):
 Suri, Rajan
Rajan (1998a
(1998a),
), Quick Resp
Response
onse Man
Manufac
ufacturin
turing.
g. A
Companywide Approach to Reducing Lead Times,
Productivity Press.
 Suri, Rajan
Rajan (1998b).
(1998b). "Don'
"Don'tt Push or P
Pull
ull -
POLCA".
POL CA". APICS
APICS Magazin
Magazine.e. 8 (11).