WORLD CLASS

MANUFACTURING
Quick Response Manufacturing
■ Quick Response Manufacturing (QRM) is a strategy for reducing lead-times across all
functions of an organisation. The resulting improvements in speed and responsiveness
increase the organisation’s agility and responsiveness, resulting in competitive
advantage.
■ It is an approach to manufacturing which emphasizes the beneficial effect of reducing
internal and external lead times.
■ The time-based framework of QRM accommodates strategic variability such as
offering custom-engineered products while eliminating dysfunctional variability such
as rework and changing due dates.
■ It is a companywide strategy to cut lead times in all phases of manufacturing and
office operations. It can bring your products to the market more quickly and help you
compete in a rapidly changing manufacturing arena.
■ It will increase profitability by reducing cost, enhance delivery performance and
improve quality.
■ QRM’s overarching focus on time as the guiding management strategy is
ideally suited for companies offering high-mix, low-volume and custom-
engineered products.
■ Customer satisfaction is an important driver for businesses and the ability to
respond quickly to customer’s requirements is a leading factor behind QRM.
■ Essentially, Quick Response Manufacturing relentlessly pursues the reduction
of lead time in all aspects of your operations. Externally, Quick Response
Manufacturing means responding to your customers' needs by rapidly
designing and manufacturing products customized to those needs.
■ QRM is often implemented by two types of businesses -
– The first type is a company that produces highly engineered material in
small batches.
– The other type of company to implement QRM is one that does not need to
engineer each item but has a very large number of different items with
highly variable demand for each.
The four core concepts of QRM
■ Realizing the Power of Time - It's easy to recognize that long lead times
can make it difficult to meet the customers' needs, but the sources of long
lead time and the impacts of long lead time on the company are quite long
lasting. This concept details the numerous reasons why lead time is
important (much more important than most managers realize), how it
influences total operating cost and quality, and how to take advantage of
this realization. Many hidden costs within a business are driven by long
lead-times. Typical symptoms include excess inventories, planning
difficulties, expediting costs, overtime, quality issues and so on. The
result is often dissatisfied customers and a stressed workforce. By
visualizing the lead-time clearly and using one overriding measure to
drive it down, the organisation will have clarity on its strategic goal and
avoid confusion around conflicting objectives.
■ Rethinking the Organizational Structure – This aspect shows how to
restructure the organization on the shop floor and in the office to facilitate
lead time reduction by organizing into QRM Cells. While cells are not
new to manufacturing strategy, QRM Cells have several unique features
that support lead time reduction. The traditional focus on Resource
efficiency has driven a high degree of specialization into many
organizations. Lead-time can become extended as a result, due to
inflexibility. In fast moving production environments the ‘bottleneck’
process often moves, so inflexible mass production systems are not the
solutions for it. QRM Cells overcome this through a high degree of cross-
training and autonomy, promoting flexibility for resources to move to
where the workload currently is.
■ Exploiting System Dynamics - The interactions between machines,
people, and products impact lead time. This Concept is an introduction to
system dynamics principles specifically tailored to high-mix, low-volume
environments. The QRM approach to capacity planning (e.g. machine and
labor utilization) and batch sizing allows companies to exploit system
dynamics principles in order to achieve lead time reduction. Lead-time is
related to capacity utilisation, demand variability and lot sizing. High
utilisation is great for Resource efficiency, but damages flow. System
dynamics will help managers to understand the impact that utilization and
variability have on lead-time, and how even a small investment in
additional capacity can generate a significant lead-time improvement.
■ Enterprise wide application - The same time-based principles that apply to
the shop floor can be applied throughout your organization. This concept
briefly describes the QRM methods that extend to material planning,
purchasing and supply chain management, office operations, and new
product development. Office based QRM Cells can apply the same lead-
time reduction philosophy to their processes to contribute to reduction in
overall lead-time. As with any change management process, clarity of the
goal and its benefits are essential to communicate. Remember, QRM is
driven by the goal of lead-time reduction, to which all aspects of the
business can contribute. Quick Response Manufacturing applies to every
aspect of an organisation, is singular in its focus and simple to understand
– generating competitive advantage through relentless reduction of lead-
time.
Agile Manufacturing
■ Agile manufacturing is a business production strategy that uses modular
parts and automation, rather than an assembly line model, to increase
customer satisfaction by enabling goods to be produced and supplied
faster and with greater customization.
■ The automation required to construct a product in an agile manufacturing
environment results in fast production times which in turn helps better
serving demand for a particular product.
■ The agile manufacturing strategy employs a modular construction for all
products; as a result, each product can be broken down into its individual
modular components for easier customization or alteration.
■ Agile manufacturing refers to the ability of a company to change its
production according to the unforeseen changes in the customers
demands.
■ Agile organizations must be able to retool facilities quickly, modify
agreements with suppliers, and continually introduce new ideas and
improvements to their products.
■ It is important to connect manufacturing staff, manufacturers, marketing,
and customer support when using agile manufacturing techniques as it
makes sure that customer demands are being considered and implemented.
The product is continually being improved to meet the changing customer
demands.
■ With agile manufacturing, production flexibility is important. It is
therefore important to have a planning and scheduling system that can
handle that flexibility and will allow the organization to quickly adapt and
change the way operations are scheduled.
Advantages
■ Since the company is constantly changing according to the customers’ needs,
their customers may be more satisfied.
■ New designs are based on the customers’ needs which mean that the customer
will have a wider variety to choose from.
■ The company is given a competitive advantage since it is continuously changing
its approach to satisfy its customers.
■ Responds quickly to emerging crisis
■ Even tough the production could change rapidly, mass production could still be
reached while flexibility is still possible.
■ Through utilization of an integrated system using accurate data and information,
the system is able to make quick decisions and keep production flowing.
■ Entire supply chain is connected so that consumer demands and expectations are
shared with suppliers, retailers, and the production facility.
Disadvantages
■ Shortages will occur if there is a sudden grows in demand both with respect to
volume or variety.
■ If the demand suddenly drops during a high production rate, the products could not
be sold.
■ Highly skilled personnel are required to operate an agile manufacturing company.
■ Installation costs are high because of interchangeability.
■ Due to short life-cycles, machinery and workers need to keep up-to-date because
of new technologies.
■ The complex machinery could add to the cost if there is a breakdown, which will
increase the production down time.
■ Maintenance cost is expensive.
■ Management of these systems is hard and intensive planning and management is
required
Lean Manufacturing
■ Originating from the Japanese automotive industry, lean manufacturing
aims to minimize waste and all activities that are not valuable from the
production process.
■ Lean manufacturing is a system “based on the philosophy of the complete
elimination of all waste in pursuit of the most efficient methods”
■ Lean essentially means manufacturing without waste and many companies
have used it to dramatically improve their production times and processes.
■ Specific lean methods include just-in-time inventory management,
Kanban scheduling systems, 5S workplace organization, Scrum and other
"agile" software development methodologies.
■ Lean, as modeled on the Toyota Way values, has two pillars:
– Continuous Improvement, which includes Challenge, Kaizen and
Genchi Genbutsu
– Respect for People, which includes Respect and Teamwork
The seven wastes of lean production

The Toyota Production System laid out seven wastes, or processes and resources,
that don't add value for the customer. These seven wastes are:

– unnecessary transportation;
– excess inventory;
– unnecessary motion of people, equipment or machinery;
– waiting, whether it is people waiting or idle equipment;
– over-production of a product;
– over-processing or putting more time into a product than a customer
needs, such as designs that require high-tech machinery for unnecessary
features; and
– defects, which require effort and cost for corrections.
Advantages
■ Streamlined design: In the design stage, the Lean focus will be to establish a
product with no unnecessary steps or waste. This results in a streamlined design that
is easier to implement and bring to market.
■ Reduced costs: Reduced waste results in lower costs, as time and resources are
efficiently allocated.
■ Increased efficiency: Employees follow the same process which is continually
honed to ensure perfection. This reduces wasted employee time and maximizes labor
power.
■ Consistent quality: As the process of creation is standardized, there are no
deviations that would result in poor quality products making it off the assembly line.
■ Waste Minimization - Lean manufacturing can efficiently minimize waste within a
production facility. This is arguably the most significant benefit of lean
manufacturing. Waste is defined by any activity that does not add value to the
process.
Disadvantages
■ Long roll out: Starting a Lean program can take a while as the initial process, value
streams, and other necessities need to be reviewed and mapped out for the very first
time. However, once implemented, a Lean process typically runs faster than a non-
Lean one.
■ Limited flexibility: As it is process-focused, it may seem that Lean limits creativity.
However, the steps are designed to allow manufacturers to pivot with some frequency.
■ It’s ongoing: For those who need to check items off the to-do list, Lean manufacturing
may not be ideal. It’s an ongoing process that is never truly complete.
■ Employee Dissatisfaction - Adopting lean manufacturing processes requires change
among employees to more efficient production processes to ensure that quality
products are being made.
■ New Inefficiencies - Lean techniques can be overused. When tracking of productivity
and waste starts to impact the time used for production, the solution becomes the
problem.
Five principles of lean manufacturing
■ Identify value from the customer's perspective - Value is created by the
producer, but it is defined by the customer. Companies need to understand
the value the customer places on their products and services, which, in
turn, can help them determine how much money the customer is willing to
pay.
■ Map the value stream - This principle involves recording and analyzing
the flow of information or materials required to produce a specific product
or service with the intent of identifying waste and methods of
improvement. Value stream mapping encompasses the product's entire
lifecycle, from raw materials through to disposal.
■ Create flow - Eliminate functional barriers and identify ways to improve
lead time. This aids in ensuring the processes are smooth from the time an
order is received through to delivery. Flow is critical to the elimination of
waste. Lean manufacturing relies on preventing interruptions in the
production process and enabling a harmonized and integrated set of
processes in which activities move in a constant stream.
■ Establish a pull system. This means you only start new work when there is
demand for it. Lean manufacturing uses a pull system instead of a push
system. Pull system is the one in which nothing is bought or made until
there is demand. Pull relies on flexibility and communication.
■ Pursue perfection with continual process improvement, or Kaizen. Lean
manufacturing rests on the concept of continually striving for perfection,
which entails targeting the root causes of quality issues and ferreting out
and eliminating waste across the value stream.
Important concepts of Lean

■ Heijunka: production leveling or smoothing that seeks to produce a

continuous flow of production, releasing work to the plant at the required
rate and avoiding interruptions.
■ 5S: A set of practices for organizing workspaces to create efficient,
effective and safe areas for workers and which prevent wasted effort and
time. 5S emphasizes organization and cleanliness.
Seiri Sort
Seiton Set in Order
Seiso Shine
Seiketsu Standardize
Shitsuke Sustain
■ Kanban: a signal used to streamline processes and create just-in-time
delivery. Signals can either be physical, such as a tag or empty bin, or
electronically sent through a system.
■ Jidoka: A method that defines an outline for detecting an abnormality,
stopping work until it can be corrected, solving the problem, then
investigating the root cause.
■ Andon: A visual aid, such as a flashing light, that alerts workers to a
problem.
■ Poka-yoke: A mechanism that safeguards against human error, such as an
indicator light that turns on if a necessary step was missed, a sign given
when a bolt was tightened the correct number of times or a system that
blocks a next step until all the previous steps are completed.
■ Cycle time: How long it takes to produce a part or complete a process.
Rapid Prototyping
■ Rapid prototyping is the fast fabrication of a physical part, model or assembly
using 3D computer aided design (CAD).
■ Rapid prototyping is a group of techniques used to quickly fabricate a scale
model of a physical part or assembly using three-dimensional computer aided
design (CAD) data.
■ Prototypes are an integral part of engineering product design and more
importantly in an overall new product development process.
■ Rapid prototyping can be used at any stage of the product development cycle or
for any component or sub-component and can be repeated numerous times
along the new product design process.
■ The rise of innovative manufacturing techniques using computer-assisted
design paves the way for a cost-effective method in developing and testing new
parts and products.
Advantages
■ Reduced design & development time
■ Reduced overall product development cost
■ Elimination or reduction of risk
■ Allows functionality testing
■ Improved and increased user involvement
■ Ability to evaluate human factors and ergonomics
Disadvantages
■ Lack of accuracy
■ Added initial costs
■ Some rapid prototyping processes are still expensive and not economical
■ Material properties like surface finish and strength cannot be matched
■ Requires skilled labour
■ The range of materials that can be used is limited
■ Overlooking some key features because it cannot be prototyped
■ End user confusion, customers mistaking it for the finished project/developer
misunderstanding of user objectives
Concurrent Engineering
■ Concurrent engineering, also known as simultaneous engineering, is a
method of designing and developing products, in which the different stages
run simultaneously, rather than consecutively.
■ It decreases product development time and also the time to market, leading
to improved productivity and reduced costs.
■ Concurrent engineering is a method of designing and developing
engineering products, in which different departments work on the different
stages of engineering product development simultaneously.
■ Concurrent Engineering is a long term business strategy, with long term
benefits to business. Though initial implementation can be challenging, the
competitive advantage means it is beneficial in the long term.
■ It removes the need to have multiple design reworks, by creating an
environment for designing a product right the first time round.
■ It helps to increase the efficiency of product development and marketing
considerably reducing the time and contributing to the reduction of the overall
development cost while improving the final product quality.
■ This streamlined approach towards an engineering product forces several teams
such as product design, manufacturing, production, marketing, product support,
finance, etc., within the organisation to work simultaneously on new product
development.
■ Concurrent engineering, also known as the integrated product development
(IPD) or simultaneous engineering was introduced a few decades ago to
eliminate the issues from sequential engineering or so-called “over the wall”
process.
■ This systematic approach is intended to force all the stakeholders to be involved
and the full engineering product cycle to be considered from concept to after-
sale support. There are plenty of incentives to choose Concurrent engineering
over sequential engineering product development.
■ Concurrent engineering presents an
environment which encourages and
improves the interaction of different
disciplines and departments towards a
single goal of satisfying an
engineering product requirements.
■ Key elements of concurrent
engineering can be summarized using
a PPT framework or the Golden
Triangle.
■ People, process, and technology are
crucial to any organisation and
essential in implementing concurrent
engineering to achieve shorter
development time, lower cost,
improved product quality and to fulfil
customer needs.
Advantages
■ It encourages multi-disciplinary collaboration
■ Reduces product cycle time
■ Reduces cost
■ Increases quality by supporting the entire project cycle – enhanced quality
■ Increases productivity by stopping mistakes in their tracks
■ Gives a competitive edge over the competitors
■ It encourages multidisciplinary collaboration
■ It makes the design process faster
■ It reduces costs and increases quality by supporting the entire project
lifecycle
■ It can give engineers a competitive advantage
Disadvantages
■ Complex to manage
■ Relies on everyone working together hence communication is critical
■ Room for mistakes is small as it impacts all the departments or disciplines
involved
■ Since the designer would no longer be king. There would be lot of ideas
( for product) floating around from manufacturing, quality, service
causing ego issues.
■ There is always a tendency of the respective teams to protect their areas.
For eg. Manufacturing engineers might not easily accept a change in
design which increases performance but reduces manufacturability.
■ The quality of ideas generated can go down.