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7 steps to World Class

Manufacturing

Competitive Edge
FICCI Management Consultants
What does it mean to be a world-class
Manufacturer?

It means being successful in your chosen market against any


competition—regardless of size, country of origin or resources.
What does it mean to be a world-class
Manufacturer?

It means matching or exceeding


any competitor on
• Quality
• Innovation
• Lead-time
• Flexibility
• Cost
• Customer service
What does it mean to be a world-class
Manufacturer?

It means you are in control and your competitors struggle to


emulate your success.
Are you a world class manufacturing company?

What does it take to be world class? First and


foremost, you must be in control— In control
of your markets and customers, in control of
your processes and resources information.
Being in control doesn’t necessarily mean you
make all the decisions, but it does mean you are
prepared and will not be thrown by unexpected
changes in demand, technology,circumstance
or competition.

Take a test to know if you are a world class


manufacturing company by clicking on the globe
given on the right.
7 steps to world class Manufacturing

1. Focus on ‘Competitive Quality’


2. Implement Lean manufacturing
3. Achieve cost efficiency
4. Reduce Time-to-Market
5. Exceed Customer Expectations
6. Streamline Outsourcing Processes
7. Have a global perspective
1. Focus on ‘Competitive
Quality’

Today’s dynamic and turbulent business environment has shifted


the focus of the organizations from “Quality” to “Competitive
Click on topics given below
quality”. With ever changing customer requirements, quality is no
more a competitive weapon. Every organization has quality today.
Assessment of performance
What separates a world class organization from others is - how
Continuous improvement guidelines
better you are from the rest of your competitors.
Model of Continuous improvement
SMAIC in action
Measures of Mfg. excellence Everybody in the organization must think and demonstrate that they
Benchmarking - technique can do better. The need of the hour is to constantly challenge the
Manufacturing best practices status-quo and develop a constructive level of dissatisfaction with
TQM Rolling plan the present performance.
Benchmarking with Japan
BPR
Kaizen
PDCA
Reliability improvement
FMEA
Six sigma
2. Implement Lean Manufacturing
systems

Lean manufacturing is an overall methodology that seeks to


minimize the resources required for production by eliminating
Click on topics given below waste (non-value added activities) that inflate costs, lead times
Lean Management and inventory requirements, and emphasizing the use of
Non-Value Adding Activities preventive maintenance , quality improvement programs, pull
Reducing set-up time systems and flexible work forces and production facilities.
Five S-technique
Just In time
Principles of lean include zero waiting time, zero inventory,
Total Productivity Maintenance
scheduling (internal customer pull instead of push system), batch
TPM Checklist to flow (cut batch sizes), line balancing and cutting actual process
Supplier quality improvement times.
Supplier evaluation
Supplier best practices
Supply chain
Takt Time
Taguchi Methods
Root cause analysis
Kanban
Value Chain Mapping
3. Achieve cost efficiency

Although recent developments in planning and customer


relationship management have focused more on top-line benefits
(increased revenue), the bottom line is still greatly dependent on
controlling costs. Companies with a lower operational cost
Click on topics given below structure enjoy an obvious advantage in profitability and the
Quality,Cost & Profit
ability to adjust pricing to meet competitive pressures if necessary
Cost of Quality to maintain or gain market share.
Quality Cost-Function Wise
Non-Value Adding Activities
Costs are really just part of the scoreboard. When a company
Gemba Kaizen - A low cost approach
implements world-class operational processes, it improves
Analysis of variance
multiple measurements simultaneously,including cost, lead times,
Controlling variation
inventory and customer service.
Mistake Proofing
Pokayoke
Reducing Defectives through FMEA
Waste Assessment
Waste Reduction
Design of experiments
4. Reduce Time-to-Market

Customers now penalize suppliers that infringe on their time,


whether through delays, mistakes or inconveniences. Today’s
customers demand operations that are airborne, on-line and real-
time. Soon is not the answer the customers want to hear. They
count the speed of response time as a Key Value Dimension.
Click on topics given below
Time based competition
Good ideas are not enough; well-managed processes for bringing
Creativity & innovation new products to market faster than the competitors can lead to
Niche Marketing significant competitive advantages. Bringing products faster into
SCAMPER
the market does represent some element of risk, which can be
properly evaluated.
New product development

Risk Analysis

Risk Management

Ten commandments of time


5. Exceed Customer
Expectations

Click on topics given below

Are you a customer driven org.


The ultimate key to success in any business enterprise is to please
Customer expectations
your customers. The most successful companies don’t just meet
Exceeding expectations customer expectations, they exceed them and beat the competition
Competitive Edge by setting the standards at a level that makes it difficult, if not
Customer supplier model impossible, for others to surpass.
Internal health
Quality
Quality MIS
Quality management principles
Customer satisfaction measurement
Customer loyalty
Customer practices of global leaders
Customer survey forms
Quality Function Deployment
6. Streamline Outsourcing Processes

Outsourcing of manufacturing operations is a common practice


today because it offers flexibility—the ability to change products
or processes rapidly—and can often save money by exploiting
economies of scale or other favorable cost factors the contractor
has to offer.
Click on topics given below
For manufacturers, the fastest and easiest way to achieve this
Process classification framework goal is through partnerships with companies that have attained
superior capabilities in particular phases of the process-like
Principles of outsourcing
production.

By partnering with world-class contract manufacturers you can


reap the benefits almost immediately—well-managed processes,
high quality, on time deliveries—and increase your performance
and deliver to meet your customer’s expectations.At the same
time time you can focus your own resources on things that you
do best-product innovation,design,marketing,distribution sales or
manufacturing.
7. Have a Global
perspective

Click on topics given below There’s no question the world is shrinking, and virtually every
business is now involved in some form of international trade
International Marketing —whether marketing and selling to customers in other
Shingo prize for Mfg. Excellence countries or simply using parts or materials that are produced
elsewhere. Customers today are looking for world class
products.

The companies wanting to become world class manufacturing


must follow the international standards in quality. One of the
best framework to follow in this regard is The Shingo Prize
which is awarded to companies who have attained
manufacturing excellence.
Source of information and advice

General H.LAL

General H.Lal is a mechanical engineer. In 1971 he joined the Defence Quality Organization
and held important appointments till in 1987 he was appointed Director General, Defence
Quality Assurance Organization. After retirement he was appointed Director General, Bureau
of Indian Standards. In addition to standards he pioneered the quality movement in India. By
his sustained efforts through TV, print media and seminars he brought quality into national
focus.
He is also an internationally recognized quality expert and his new book “ISO 9000 :
Guidelines for developing countries” has recently been published by ISO and
UNCTAD/GATT. He is the chairman of MSD Council of BIS which formulates national
standards of quality management. He is also an adviser to the UNITED NATIONS
DEVELOPMENT ORGANIZATION ( UNIDO ).
He is currently the Director General , FICCI Quality Forum.
Research, Artwork, Design and Development

Pravin Rajpal
Mr.Pravin Rajpal is a Chartered Accountant with more than 15 years of work
experience in some of the best professionally managed companies in India. At present
he is the CEO of Competitive Edge, Management Consultants.