W RLD

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
…..

Company’s specification

“This is it….

Lena hai to Lo ,,,,”

Now it is …..

Mass customisation

Dell’s confugure your

Own PC
It used to be error prone
products …..
Now it is …..

Mistake Proof Products …..

Can’t go the other way in ….

Used to be manually crafted
…..

All products different

non standard in quality and dimensions
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  Specific Strategy Used
 Quality  Flexibility
 Design
 Product
 Volume
 Process  Low Price
 Location  Delivery
 Layout  Speed
 Dependability
 Human resource
 Quality
 Supply chain
 Conformance
 Inventory  Performance
 Scheduling  After sales Service
 Maintenance  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/or Kaizen
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 ‘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?

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 Webster’s 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 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,
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
Deming’s 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