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 ..

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

. Automation .. .Now it is .

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

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

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

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 .

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.20 characteristics to become world class 1. Nonvalue-adding steps in the mfg. .

a demand-based flow or "pull" production strategy is adopted.20 characteristics to become world class 2. Streamlined Flow Where appropriate. . 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. response time and quality while reducing inventories and backlogs. .or customer-focused work groups housing all operations to manufacture a family of products. Cellular Mfg. (Focused Factories) The facility is structured into product. Office operations are similarly structured to increase accountability.

responsibilities and performance standards.20 characteristics to become world class 5. . Empowered Teams Employees are multi-skilled members of motivated. 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. .

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

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. .

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

.) are in place. etc.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.

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. Seamless Shift Operations Continuity. consistency and communication are maintained across shifts.

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

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.

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 15.

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

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

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

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

.20 characteristics to become world class  20. 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.

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 .

Clean  Seiketsu : Standardize  Shitsuke : Sustain .Tools of WCM  Seiri : Sort  Seiton : Set in Order  Seiso : Shine.

5 S .

Tools of WCM .

9% Good Enough? .Six Sigma  What is good enough?  Is 99.

. then:  22.If 99.9% is good enough.  1.000 checks could be deducted from the wrong account in the next 60 minutes.314 phone calls could be misdirected every minute.  12 babies could be given to the wrong parents each day.

then:  5. .200 cases of soft drinks could be produced flat this year.If 99.  315 entries in the Webster s Third Edition could be misspelled.517.9% is good enough.

000 incorrect surgeries could be performed per week  There could be no electricity for almost 7 hours each month .9% is good enough.If 99. then:  20.000 pieces of mail could be lost every hour  5.

00034 % defectives  99.99966 % good products .Six Sigma  Six Sigma Quality Standard Means  3.4 defects per million  0.

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

Awards & Recognition Two most prestigious Awards .

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. Organizations tested on CWQC ± CompanyWide Quality Control ± system. 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. customer focus. analysis and knowledge management. The criteria consists of a hierarchical set of categories and areas of address: leadership. HR. . Named after the then-Secretary-of-Commerce. Law passed in August 1987. measurement. process management.Malcolm Baldrige award (MBNQA)  Initiated by the then-President Reagan after     recognizing the declining productivity and quality standards in USA. strategic planning.

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 .

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