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In the good old times it

used to be ....
Plug & PRAY

Now it is ...
Plug & Play

Used to be
Long waiting lines ...

Booked it for my son !

Now it is ..

Faster Delivery . . . . .

Used to be
Traditional Products ..

Only Black Ford T Model

Now it is ..
Innovative Products

The Nokia Open Phone

Virtual
Keyboards

The Nokia Morph

Used to be Mass
Production ..

Companys specification
This is it.
Lena hai to Lo ,,,,

Now it is ..

Mass customisati
Dells confugure your
Own PC

It used to be error
prone products ..

Now it is ..
Mistake Proof Products ..

Cant go the other way in .

Used to be manually
crafted ..

All products different


non standard in quality and dimensi

Now it is ..

Automation ..

That is it ..
Felt the difference
That is WORLD CLASS

MANUFACTURING

World Class
Manufacturing
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,
Total quality management
Lean production

World Class Manufacturers are those

that demonstrate industry best


practice
To achieve this companies should
attempt to be best in the field at each
of the competitive priorities
quality, price, delivery speed, delivery

reliability, flexibility and innovation

Organisations should therefore aim to

maximise performance in these areas


in order to maximise competitiveness

Dimensions of
competitiveness

Cost or price
Quality
Product or service differentiation
Dependability as a supplier
Reliability
Flexibility
Speedy delivery
Customer service
Employee productivity and managerial
expertise

Why organization fail in


competition
Higher focus on short term gain at expense of

R&D
Failure to take advantages of strengths &
opportunities and / or failure to recognize
own weakness and competitive threats
Neglecting production strategy
Too much emphasis on product and service
design at the expense of process design
Neglecting investments in capital and human
resources
Lack of good internal communication and
cooperation among different functional areas
Failure to consider customer need and want

Manufacturing management
contribution to strategy
Operations

Decisions
Quality
Product
Process
Location
Layout
Human resource
Supply chain
Inventory
Scheduling
Maintenance

Specific Strategy Used


Flexibility
Design
Volume

Low Price
Delivery
Speed
Dependability

Quality
Conformance
Performance

After sales Service


Broad Product Line

Manufacturing Excellence
Manufacturing excellence can be

obtained by
Value Added Engineering
Do nothing that does not add value to the
product or to the customer
Continuous Improvement

Suggests that every aspects of


manufacturing is dedicated to making it
better in ways small and big
Just in Time (JIT) / Total Quality

Management

To achieve manufacturing excellence


Throughput should go up
Inventory should come down
Operating expenses should come down
Cycle time should come down
Yield should go up

20 characteristics to
become world class
1. Lead Time Reduction
There is a plant-wide initiative to
measure and continually reduce lead
times. Non-value-adding steps in the
mfg. process are gradually
eliminated and dock-to-dock velocity
is increasing.

20 characteristics to
become world class
2. Streamlined Flow
Where appropriate, a demand-based
flow or "pull" production strategy is
adopted, using kanbans and demand
flow techniques, to produce to order
rather than to stock.

20 characteristics to
become world class
3. Quick Changeover
Quick changeover methods are
employed to increase equipment
availability and respond quickly and
economically to changing schedules
and customer needs.

20 characteristics to
become world class
4. Cellular Mfg. (Focused
Factories)
The facility is structured into
product- or customer-focused work
groups housing all operations to
manufacture a family of products.
Office operations are similarly
structured to increase accountability,
response time and quality while
reducing inventories and backlogs.

20 characteristics to
become world class
5. Empowered Teams
Employees are multi-skilled
members of motivated, capable work
groups with clear roles,
responsibilities and performance
standards.

20 characteristics to
become world class
6. Cross-Functional Teamwork
There is a high level of teamwork
and coordination between
organizational units and strong
internal customer-supplier
relationships.

20 characteristics to
become world class
7. Associate Involvement
&Commitment
Shop floor employees routinely solve
problems, suggest and implement
improvements and are committed to
world-class performance.

20 characteristics to
become world class
8. Process Reliability
A formalized system is in place to
maximize equipment uptime and
reduce variation in product quality.
Overall Equipment Effectiveness
(OEE) measures are at world-class
levels.

20 characteristics to
become world class
9. Continuous Improvement
Employees are engaged in CI
and/orKaizen Events on a regular
basis. All teams meet to set goals,
solve operating problems and
implement corrective action.

20 characteristics to
become world class
10. In-Process Quality
Product quality is built-in at the
operating level. Employees have the
ability and the authority to make
product quality decisions in process
and quality management tools (SPC,
error-proofing, etc.) are in place.

20 characteristics to
become world class
11. Seamless Shift Operations
Continuity, consistency and
communication are maintained
across shifts. An effective 24-hour
management system provides the
necessary support for all shifts. Shift
schedules satisfy both operational
and employee needs.

20 characteristics to
become world class
12. Standard Operating
Procedures
The plant is ISO (or QS) certified.
Operating procedures and quality
standards are consistent and a
formalized process is used to ensure
sustainability.

20 characteristics to
become world class
13. Goal Deployment
Key performance indicators and shop
floor goals are in place for each area,
developed at the operating level and
tied directly to plant goals

20 characteristics to
become world class
14. Visual Management Systems
Plant and team scoreboards and
other visual means of controlling and
improving operations are used
throughout the plant. Operational
status information is available
quickly and accurately to anyone
who needs it.

20 characteristics to
become world class
15. Incentives, Rewards &
Recognition
There is an effective incentive and
recognition system that promotes
continuous improvement and
rewards outstanding individual, team
and plant performance.

20 characteristics to
become world class
16. Plant Safety, Loss Prevention
&Housekeeping
Effective training & awareness,
thorough incident investigations and
a 5S organization program ensure an
orderly, efficient and safe workplace.

20 characteristics to
become world class
17. High-Performance Leadership
All levels of plant leadership provide
coaching, training & mentoring to
subordinates, encouraging peak
performance and employee
involvement.

20 characteristics to
become world class
18. Supplier Partnerships
The organization collaborates with a
few key certified suppliers to
continuously improve material cost,
quality &delivery, benefitting all
involved.

20 characteristics to
become world class
19. Cross-training &Multi-skilling
Multi-skilling in each area provides
the needed flexibility. Training of all
personnel, including the plant
leadership team, is a key priority.

20 characteristics to
become world class
20. World-Class Performance

Measures
Performance metrics measure
performance against world-class
standards, are generated and
controlled by shop floor personnel
and are successful in rallying the
entire organization toward higher
performace levels.

Tools of WCM
POKA YOKE
This is known as MISTAKEPROOFING
From Japanese:
Yokeru (avoid)
Poka (inadvertent errors)

Everyday
Examples

Which dial turns on the


burner?

Stove A

Stove B

How would you operate these


doors?
Push or pull? left side or right? How did you know?

Pull

Push

God knows or knock

Tools of WCM

Seiri : Sort
Seiton : Set in Order
Seiso : Shine, Clean
Seiketsu : Standardize
Shitsuke : Sustain

5 S

Tools of WCM

Six Sigma
What is good enough?

Is 99.9% Good Enough?

If 99.9% is good enough, then:


22,000 checks could be deducted

from the wrong account in the next


60 minutes.
1,314 phone calls could be

misdirected every minute.

12 babies could be given to the

wrong parents each day.

If 99.9% is good enough, then:

5,517,200 cases of soft drinks

could be produced flat this year.

315 entries in the Websters Third

Edition could be misspelled.

If 99.9% is good enough, then:


20,000 pieces of mail could be lost

every hour

5,000 incorrect surgeries could be

performed per week

There could be no electricity for

almost 7 hours each month

Six Sigma
Six Sigma Quality Standard Means
3.4 defects per million
0.00034 % defectives
99.99966 % good products

Tools of WCM

Kaizen
Meaning
Small Improvements
At all levels of
organisation

Kaizen

Tools of WCM

Total Quality
Management

Total Quality management


A philosophy that involves everyone in
an organization in a continual effort to
improve quality and achieve customer
satisfaction.
T

Continuous improving
Involvement of everyone
Customer satisfaction

Tools of WCM

Standardization

Standardization
ISO 9000 standard
Quality Management System Standard

ISO 14000 standard


Environmental Management Standard

ISO 27000
System Security standard

ISO 22000
Food & Hygiene Standard

OHSAS
Occupational Hazard & Safety Standard

And much more

Awards & Recognition

Deming Award
JIPM Award
European Award
Balwich Award
Yitzhak Rabin Israeli National Quality Award
Deal of Distinction Award
National Medal of Technology: Highest honor for
technological innovation, Presented by President of
USA
MDA Green Award
Platinum Health Award,
Health Promotion Board,
International Design Excellence Awards,
The Most Influential Advertising Award

Awards & Recognition

Two most prestigious


Awards

Deming award
Instituted in 1951 by the Union of Japanese

Scientists and Engineers (JUSE) to recognize and


appreciate Demings achievements in SQC.
Organizations tested on CWQC CompanyWide
Quality Control system.
No losers Organizations failing to qualify this
year automatically considered for the next three
years.
Winners also eligible for Japan Quality Medal.
CWQC requires involvement of everyone in the
company and their understanding of quality aims
to accomplish business objectives.

Malcolm Baldrige award


(MBNQA)
Initiated by the then-President Reagan after

recognizing the declining productivity and quality


standards in USA.
Law passed in August 1987.
Named after the then-Secretary-of-Commerce.
Based on the Criteria for Performance Excellence.
The criteria consists of a hierarchical set of
categories and areas of address: leadership;
strategic planning; customer focus, measurement,
analysis and knowledge management; HR; process
management.

Criteria for MBNQA


Customer driven quality
Leadership
Continuous improvement
Full participation
Fast response
Design quality and prevention
Management by fact
Partnership development
Public responsibility

World Class
Companies