ctm chap 5 world class manufacturing

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 Morph

The Nokia Open Phone

Virtual Keyboards

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 differentnon 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 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

20 characteristics to become world class1. 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.

2. Streamlined FlowWhere 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 ChangeoverQuick 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 TeamsEmployees 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 TeamworkThere 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 & CommitmentShop floor employees routinely solve problems, suggest and implement improvements and are committed to world-class performance.

20 characteristics to become world class

8. Process ReliabilityA 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 ImprovementEmployees 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 QualityProduct 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 OperationsContinuity, 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 ProceduresThe 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 DeploymentKey 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 SystemsPlant 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 & RecognitionThere 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 & HousekeepingEffective 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 LeadershipAll levels of plant leadership provide coaching, training & mentoring to subordinates, encouraging peak performance and employee involvement.

20 characteristics to become world class

18. Supplier PartnershipsThe 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-skillingMulti-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 MeasuresPerformance 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.

20 characteristics to become world class

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?

BA C

Push or pull? left side or right? How did you know?

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?

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

If 99.9% is good enough, then:

Six Sigma

Six Sigma Quality Standard Means

3.4 defects per million

0.00034 % defectives

99.99966 % good products

Tools of WCM

KaizenMeaning

Small ImprovementsAt 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.

Continuous improving Involvement of everyone Customer satisfaction

T Q M

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 StandardAnd 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