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W RLD CLASS

MANUFACTURING

In the good old times it used to be ....  Plug & PRAY

Now it is 
Plug & Play

...

.. Booked it for my son ! .Used to be Long waiting lines .

.Now it is .. . . . Faster Delivery . .

Used to be Traditional Products . Only Black Ford T Model ..

. Innovative Products The Nokia Open Phone Virtual Keyboards The Nokia Morph .Now it is .

..Used to be Mass Production .... Company s specification This is it . Lena hai to Lo .

. Mass customisation Dell s confugure your Own PC .Now it is .

It used to be error prone products .. .

. Can t go the other way in .. Mistake Proof Products .Now it is ..

Used to be manually crafted .. All products different non standard in quality and dimensions .

. Automation ..Now it is . .

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

achieved by developing a culture based on factors such as Continuous improvement.World Class Manufacturing  A position of international manufacturing excellence. Problem prevention. Customer-driven just-in-time production. Total quality management Lean production . Zero defect tolerance.

delivery reliability. flexibility and innovation  Organisations should therefore aim to maximise performance in these areas in order to maximise competitiveness . delivery speed. price. 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.

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 .

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

a demand-based flow or "pull" production strategy is adopted. Streamlined Flow Where appropriate. using kanbans and demand flow techniques.20 characteristics to become world class 2. 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. response time and quality while reducing inventories and backlogs. (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.

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

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 6. .

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

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

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

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

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

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

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

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

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

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

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

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

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

. are generated and controlled by shop floor personnel and are successful in rallying the entire organization toward higher performace levels. World-Class Performance Measures Performance metrics measure performance against world-class standards.20 characteristics to become world class  20.

Tools of WCM POKA YOKE  This is known as MISTAKE-PROOFING  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? A B C 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? .

000 checks could be deducted from the wrong account in the next 60 minutes.  1.9% is good enough.If 99.314 phone calls could be misdirected every minute. .  12 babies could be given to the wrong parents each day. then:  22.

 315 entries in the Webster s Third Edition could be misspelled.517. .If 99. then:  5.200 cases of soft drinks could be produced flat this year.9% is good enough.

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 .

4 defects per million  0.99966 % good products .Six Sigma  Six Sigma Quality Standard Means  3.00034 % defectives  99.

Tools of WCM

Kaizen
Meaning Small Improvements At all levels of organisation

Kaizen

Tools of WCM Total Quality Management .

T Q M  Continuous improving  Involvement of everyone  Customer satisfaction .Total Quality management A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve 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 .

International Design Excellence Awards. The Most Influential Advertising Award .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. Health Promotion Board. Presented by President of USA MDA Green Award Platinum Health Award.

Awards & Recognition Two most prestigious Awards .

Organizations tested on CWQC ± CompanyWide Quality Control ± system. Winners also eligible for Japan Quality Medal.Deming award  Instituted in 1951 by the Union of Japanese     Scientists and Engineers (JUSE) to recognize and appreciate Deming¶s achievements in SQC. . No ³losers´ ± Organizations failing to qualify this year automatically considered for the next three years. CWQC requires involvement of everyone in the company and their understanding of quality aims to accomplish business objectives.

Based on the Criteria for Performance Excellence. Law passed in August 1987.Malcolm Baldrige award (MBNQA)  Initiated by the then-President Reagan after     recognizing the declining productivity and quality standards in USA. HR. Named after the then-Secretary-of-Commerce. customer focus. strategic planning. . analysis and knowledge management. measurement. The criteria consists of a hierarchical set of categories and areas of address: leadership. 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 .