World Class

Manufacturing
 7 steps to World Class
Manufacturing

FICCI
 It refers to the practice followed in
manufacturing
a organizations, in order to
consistently deliver exceptional performance,
frequently in excess of expectations.

 World Class Manufacturers are those

that demonstrate industry best practice.
 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.
 What does it mean to be a world-class
Manufacturer?

You are in in control—

· In control of your markets and customers
· In control of your processes &
· In control of your resources
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.
1. Customer service.
2. Quality control and assurance.
3. Research and development/ new product development
4. Acquiring new technologies
5. Innovation
6. Team-based approach (adopting and using effectively)
7. Best practices (study and use of)
8. Manpower planning
9. Environmentally sound practices
10. Business partnerships and alliances
11. Reengineering of processes
12. Mergers and acquisitions
13. Outsourcing and contracting
14. Reliance on consulting services
15. Political lobbying
 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.
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’
1. Focus on ‘Competitive Quality’

• Today’s dynamic and turbulent business environment has shifted

the focus of the organizations from “Quality” to “Competitive
quality”.
• With ever changing customer requirements, quality is no more
a competitive weapon. Every organization has quality today.
• What separates a world class organization from others is - how
better you are from the rest of your competitors.

• Everybody in the organization must think and demonstrate that

they can do better.
• The need of the hour is to constantly challenge the status-quo
and develop a constructive level of dissatisfaction with the
present performance.
Tools to get competitive edge

Assessment of performance
Continuous improvement guidelines Model
of Continuous improvement SMAIC in
action
Measures of Mfg. excellence
Benchmarking - technique
Manufacturing best practices TQM
Rolling plan
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
waste (non-value added activities) that inflate costs, lead times and
inventory requirements, and emphasizing the use of preventive
maintenance , quality improvement programs, pull systems and
flexible work forces and production facilities.
 Principles of lean include zero waiting time, zero inventory,
scheduling (internal customer pull instead of push system), batch
to flow (cut batch sizes), line balancing and cutting actual process
times.
Tools to get Lean Manufacturing systems
 Lean Management
 Non- Value Adding Activities Reducing
set- up time
 Five S- technique Just In time
 Total Productivity Maintenance TPM
Checklist
 Supplier quality improvement Supplier
evaluation
 Supplier best practices Supply
chain
 Takt Time
 Taguchi Methods
 Root cause analysis Kanban
 Value Chain Mapping
3. Achieve cost efficiency
 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 structure enjoy an
obvious advantage in profitability and the ability to adjust
pricing to meet competitive pressures if necessary to maintain or
gain market share.

 Costs are really just part of the scoreboard. When a company

implements world-class operational processes, it improves
multiple measurements simultaneously, including cost, lead
times, inventory and customer service.
 Tools to Achieve cost efficiency

 Quality,Cost & Profit Cost of Quality

 Quality Cost- Function Wise Non- Value
Adding Activities
 Gemba Kaizen - A low cost approach Analysis of
variance
 Controlling variation
 Reducing Defectives through FMEA Waste
Assessment
 Waste Reduction Design of experiments
4. Reduce Time-to-Market
 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. Good ideas are not enough; well-managed processes
for bringing new products to market faster than the competitors
can lead to significant competitive advantages.

 Bringing products faster into the market does represent some

element of risk, which can be properly evaluated
 Tools to Reduce Time-to-Market

 Time based competition

 Creativity & innovation

 Niche Marketing SCAMPER

 New product development

 Risk Analysis

 Risk Management

 Ten commandments of time

 5. Exceed Customer
Expectations
 The ultimate key to success in any
business enterprise is to please your
customers.

 The most successful companies don’t just

meet customer expectations, they exceed
them and beat the competition by setting
the standards at a level that makes it
difficult, if not impossible, for others to
surpass.
Tools to Exceed Customer Expectations

 Are you a customer driven org.

 Customer expectations

 Exceeding expectations

 Competitive Edge
 Customer supplier model
 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
 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.

 For manufacturers, the fastest and easiest way to achieve

this goal is through partnerships with companies that
have attained superior capabilities in particular phases
of the process-like 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.

Tools

Process classification framework

 Principles of outsourcing
7. Have a Global perspective
 7. Have a Global perspective

 There’s no question the world is shrinking, and virtually

every business is now involved in some form of
international trade whether marketing and selling to
customers in other 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
Tools to Have a Global perspective

 International Marketing

 Shingo prize for Mfg. Excellence