BUSINESS EXCELLENCE THROUGH MANUFACTURING EXCELLENCE

Berthiez Drries Droop+Rein Heckert Scharmann Starrag SIP TTL WMW

WHY MFG EXCELLENCE LEADS TO BUSINESS EXCELLENCE?

1. TO ESTABLISH THE LINK BETWEEN OPERATIONAL EXCELLENCE AND CUSTOMER SATISFACTION & COMPETITIVE ADVANTAGE TO ESTABLISH THE UNIVERSAL NATURE OF THE VARIOUS WORLD CLASS MANUFACTURING PRACTICES FOR VARYING INDUSTRY NEEDS TO EMPHASISE HOW BEST PRACTICES CAN BE SUSTAINED THROUGH EMPLOYEE INVOLVEMENT ACROSS FUNCTIONS

2.

3.

MANUFACTURING EXCELLENCE

BUSINESS EXCELLENCE

THE THREE GOALS OF MANUFACTURING-QDC

Customer expectation is three fold: QDC QUALITY DELIVERY COST

QUALITY-Better

firm

Customer is satisfied

customer
COSTCheaper

The Firms response should be: BFC BETTER FASTER CHEAPER

DELIVERY Faster

Firm develops competitive advantage

BUILDING A CHAIN OF CUSTOMERS

Business enterprise is a chain of customers DESIGN TO SERVICE Integration of operational excellence to strategic goals of a business enterprise

QDC

QDC

Design &Dev

Supply Chain

QDC

Sales& Service

QDC DEFINITIONS & CONCEPTS

QUALITY It is conformance to customers requirements QUALITY-Better Its target is zero defect Its measure is cost of nonconformance Its system is prevention DELIVERY CUSTOMER Meeting the promised time Delivering by expected time Crashing leadtimes & cycletimes Meeting schedules DELIVERYCOSTCOST Value derived by customer Faster Cheaper Driver of Competitive advantage Nonvalue adding activities(NVA)-Waste

firm

EXCELLENCE IN EFFECTIVENESS & EFFICIENCY-EEE & QDC

EFFECTIVENESS-Q &D Fulfillment of External purpose of the firm Do the right things EFFICIENCY-C Internal purpose of the firm Do things right Resource deployment Resource Utilisation EEE measures Business as well as Operational Excellence

Q&D

EFFECTIVENESS CUSTOMER GOALS

EFFICIENCY FIRMS GOALS

Balancing Act Of QD &C

COMPETITIVE STRATEGIES AND QDC

DIVERSIFIED

FOCUSSED

Unique and Intense Q &D performance leads to DIFFERENTIATION STRATEGY

Differentiation strategy

Unique and Intense C performance leads to COST LEADERSHIP STRATEGY

Cost Leadership Strategy

IMPROVEMENT ;INTERNAL CONSISTENCY

Improve over time Firms own past record Improve over space Competitive benchmark
Leadtime

Mutual Forces & Stress at Nodal points

reduction Waste Reduction Quality improvement

All three can go hand in hand Stress at nodes can be relieved through Kaizen
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World Class Manufacturing & QDC

QUALITY QA,TQC,TQM, ISO ZD,COQ,PDCA, 6 DELIVERY SCM, ERP CELL, JIT,KANBAN COST 5S,VE,WoW Value Chain, Cost drivers TCM,LEAN,TPM

UMBRELLA OF WCM
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JIT, CELL MFG & QDC

3 JIT CONCEPTS PULL: Kanban SMALL LOTSIZE: Single Pc Flow FLOW: No online buffers 3 CELL benefits Q: Dynamic & Autonomous quality correction D: Shorter throughputs C: Lower rework, Higher productivity

CELL MFG
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KAIZEN & QDC

Man Machine Material Method

QUALITY-MURA

DELIVERY-MURI

COST-MUDA

4Mx3mu=12 point improvement opportunity

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Thank you

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