Gunn’s Model for World Class Manufacturing

Presented by: Group 2Name Roll No.Mrugank Hathi 029Sagar Yerunkar 061Tushar Kothavale 130

Agenda

What is a WCM Environment?

Sophisticated Customers Global Manufacturing Systems

Faster Pace/Scope of Activities Emphasis on Product Quality

Gunn’s Model - WCM

3 Pillars of WCM

Computer Integrated

Manufacturing [CIM]

Total Quality Control [TQC]

Just in Time [JIT]

Manufacturing for Competitive Advantage Framework – Arthur Young

Strategic Vision

World Class Manufacturin

g

Global Competitors

Global Markets

Quality/Human

Resources/Technology/

Planning

Customers

Product and Process Design/Planning

and Control/

Production/Distribution

/Service

Suppliers

JIT | TQC | CIM

Management Resource

Inte

gra

ted

Manufa

cturin

g

Total Quality Control

Total Quality Control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction

TQC →TQM

A set of activities with total involvement of all concerned , interlinked into continuously improving processes, producing products and services, fulfilling customer’s stated and implied needs with maximization of internal revenue towards attainment of quantifiable and measurable quality objectives in time

Computer Integrated Manufacturing

Automated Warehousing

System

CAEDesign/Mfg

Supporting System

Machine Tools NC DNC CNC

FMS A-FMS

Materials Handling System

CAD

Robots

Computer Integrated Manufacturing

Automated Warehousing

System

CAEDesign/Mfg

Supporting System

Machine Tools

NC DNC CNC

FMS A-FMS

Materials Handling System

CAD

Robots

CIM

Just In Time (JIT)↓Time ↓Cost ↓COPQ

3 Elements of JIT:•Takt time: Net working time divided by the number of units ordered for that time •One piece flow:

•Downstream flow:

Quality at the sourceQuality & inspection at manufacturing

Source: Just in time thinking principles- Productivity press

1. Sort2. Straighten3. Shine/

Sweep4. Standardiz

e5. Sustain

Mistakeproofin

g

Aim:Zero Defect

Trigger for pull systemFunctions:1. Autonomous

nervous system2. Limit over

production3. Visual

management4. Kaizen Metric

A system of setup reduction and quick changeover.

JIT Thinking

Case Study:

• Outdated Manufacturing practices (1952-1990)– Floor Layout – Parking lot (6 planes on left & right)– Variety of choices offered ranging from engine choice to

spring on the board in cockpit.– Operating system used 800 different computers for tracking

parts.• Co-ordination & communication problems• Re-computing parts requirements several times during production.• Worked well for mass production but, failed during customization.

– Characterized by high costs & long production cycles.– Reputation for quality & on-time delivery suffered, several

technical snags.

Case Background:

Case Study: • In 1994 – mfg process improvement initiative (DCAC/ MRM- Define

& Control Airplane Configuration/ Manufacturing Resource Management)– Improved – mfg process– Reduced – cycle time, defects & costs– Complex – took 2 years longer to implement than originally

anticipated.– Failed to reap benefits:

• Old mfg. procedures• Bureaucracy

• August 1997 - launched price war with Airbus– Several orders– Problems: Raw material shortage, parts shortage, productivity

inefficiencies with recruitment of thousands of new employees– Serious disruption of process flow late shipment of parts increase in

overtime– Overtime cost = 30% total labor costs– Forced to shutdown 2 assy lines for 737 & 747 for month $1.6bn loss– Lost customers to Airbus

• Decided to refocus on lean manufacturing

Case Study: • 1996 – Phil Condit as new CEO• 4 Pronged strategy:

– Fix the commercial aircraft division’s production problems.– Grow the higher margin defense and space division.– Regain Credibility on the Wall-Street.– Scrap Boeing’s paternalistic corporate culture.

• Assessment process – current business situation & performance.

• Formulated implementation plan -‘Airlines should order airplanes the way consumer order automobiles’

TQC

• Formed a production reform teams.

• Reliance on employees who worked closely with processes & products.

• Conducted Accelerated Improvement Workshop (AIW) training, planning & implementation.

CIM

• 400 computer programs (keep track of parts, drawings) 4 interconnected software packages (manage configuration, mfg, purchasing, inventory)

• Boeing 777 paperless, 3D CAM software.

• ‘Cribmaster’ – Inventory mgmt

JIT

• Autonomous Maintenance Workshops (AMW) operators responsible for daily care

• Lean Manufacturing Assessment (LMA) workshops identify improvements

• Production Preparation Process (3P) Workshops eliminating waste

Case Study:• Benefits:

• Extending Lean Mfg:– 2000 Introduced ‘Moving Line’

• Moved planes from one assy team to next place slowly, keeping production at steady pace. (2 inches/ min)

• Allowed employees to monitor production status any time.

– Empowered workers to stop assy line when it fell behind schedule.– Arranged 30 feeder lines that worked parallel to main assy line.

• Boeing aims to reduce average time from order to delivery to 6 months

Benefit Quantification Inventory reduction $7.5bn$ 6.5bnManufacturing time reduction 60%Manufacturing floor space reduction 50%Defects reduction 48%Inventory turnover 2 18 per yearWIP reduction 100 30 pieces

References

• The illustrated lean agile and world class manufacturing by:

Francoise de Villiers

• Case studies in Operations Management Volume 1, ICFAI

centre for management research, K. Subhadra.

• JIT Implementation Manual, CRC Press, Hiroyuki Hirano

• World Class Manufacturing – A Strategic Perspective; Sahay,

Saxena, Kumar

Thank You.

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