7 steps to world class manufacturing

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  • 7 steps to World Class ManufacturingCompetitive EdgeManagement ConsultantsFICCI


  • What does it mean to be a world-class Manufacturer? It means being successful in your chosen market against any competitionregardless of size, country of origin or resources.

  • What does it mean to be a world-class Manufacturer? It means matching or exceeding any competitor onQuality InnovationLead-timeFlexibility CostCustomer service

  • What does it mean to be a world-class Manufacturer? It means you are in control and your competitors struggle to emulate your success.

  • What does it mean to be a world-class Manufacturer?You are in in control In control of your markets and customersIn control of your processes & In control of your resources Being in control doesnt necessarily mean you make all the decisions, but it does mean you are prepared and will not be thrown by unexpected changes in demand, technology,circumstance or competition.

  • 7 steps to world class Manufacturing1. Focus on Competitive Quality 2. Implement Lean manufacturing 3. Achieve cost efficiency4. Reduce Time-to-Market 5. Exceed Customer Expectations 6. Streamline Outsourcing Processes7. Have a global perspective


  • 1. Focus on Competitive QualityTodays dynamic and turbulent business environment has shifted the focus of the organizations from Quality to Competitive quality. With ever changing customer requirements, quality is no more a competitive weapon. Every organization has quality today. What separates a world class organization from others is - how better you are from the rest of your competitors.

    Everybody in the organization must think and demonstrate that they can do better. The need of the hour is to constantly challenge the status-quo and develop a constructive level of dissatisfaction with the present performance.Model of Continuous improvementContinuous improvement guidelinesMeasures of Mfg. excellenceKaizenPDCAReliability improvementSMAIC in actionAssessment of performanceSix sigmaFMEABenchmarking - techniqueManufacturing best practicesBenchmarking with JapanBPRClick on topics given belowTQM Rolling plan


  • 2. Implement Lean Manufacturing systemsLean manufacturing is an overall methodology that seeks to minimize the resources required for production by eliminating waste (non-value added activities) that inflate costs, lead times and inventory requirements, and emphasizing the use of preventive maintenance , quality improvement programs, pull systems and flexible work forces and production facilities. Principles of lean include zero waiting time, zero inventory, scheduling (internal customer pull instead of push system), batch to flow (cut batch sizes), line balancing and cutting actual process times.

    Value Chain MappingReducing set-up timeTakt Time Five S-techniqueJust In timeKanbanLean ManagementTaguchi MethodsTotal Productivity MaintenanceTPM ChecklistSupplier best practicesSupplier evaluationSupplier quality improvementClick on topics given belowRoot cause analysisSupply chainNon-Value Adding Activities


  • 3. Achieve cost efficiencyAlthough recent developments in planning and customer relationship management have focused more on top-line benefits (increased revenue), the bottom line is still greatly dependent on controlling costs. Companies with a lower operational cost structure enjoy an obvious advantage in profitability and the ability to adjust pricing to meet competitive pressures if necessary to maintain or gain market share.

    Costs are really just part of the scoreboard. When a company implements world-class operational processes, it improves multiple measurements simultaneously,including cost, lead times, inventory and customer service.Cost of QualityNon-Value Adding ActivitiesMistake ProofingPokayokeQuality Cost-Function WiseQuality,Cost & ProfitReducing Defectives through FMEAWaste ReductionWaste AssessmentClick on topics given belowGemba Kaizen - A low cost approachDesign of experimentsControlling variationAnalysis of variance


  • 4. Reduce Time-to-MarketCustomers now penalize suppliers that infringe on their time, whether through delays, mistakes or inconveniences. Todays customers demand operations that are airborne, on-line and real- time. Soon is not the answer the customers want to hear. They count the speed of response time as a Key Value Dimension.

    Good ideas are not enough; well-managed processes for bringing new products to market faster than the competitors can lead to significant competitive advantages. Bringing products faster into the market does represent some element of risk, which can be properly evaluated.Risk AnalysisRisk ManagementCreativity & innovationTime based competitionNew product developmentSCAMPERTen commandments of time Niche MarketingClick on topics given below


  • 5. Exceed Customer Expectations

    The ultimate key to success in any business enterprise is to please your customers. The most successful companies dont just meet customer expectations, they exceed them and beat the competition by setting the standards at a level that makes it difficult, if not impossible, for others to surpass. Are you a customer driven org.Customer expectationsCustomer satisfaction measurementCustomer loyaltyCustomer practices of global leadersInternal healthCustomer supplier modelQualityQuality management principlesExceeding expectationsCustomer survey formsQuality Function Deployment Click on topics given belowCompetitive EdgeQuality MIS

  • 6. Streamline Outsourcing ProcessesOutsourcing of manufacturing operations is a common practice today because it offers flexibilitythe ability to change products or processes rapidlyand can often save money by exploiting economies of scale or other favorable cost factors the contractor has to offer. For manufacturers, the fastest and easiest way to achieve this goal is through partnerships with companies that have attained superior capabilities in particular phases of the process-like production.

    By partnering with world-class contract manufacturers you can reap the benefits almost immediatelywell-managed processes, high quality, on time deliveriesand increase your performance and deliver to meet your customers expectations.At the same time time you can focus your own resources on things that you do best-product innovation,design,marketing,distribution sales or manufacturing.Principles of outsourcingClick on topics given belowProcess classification framework

  • 7. Have a Global perspectiveTheres no question the world is shrinking, and virtually every business is now involved in some form of international tradewhether marketing and selling to customers in other countries or simply using parts or materials that are produced elsewhere. Customers today are looking for world class products.

    The companies wanting to become world class manufacturing must follow the international standards in quality. One of the best framework to follow in this regard is The Shingo Prize which is awarded to companies who have attained manufacturing excellence.International MarketingClick on topics given belowShingo prize for Mfg. Excellence


  • General H.LAL

    General H.Lal is a mechanical engineer. In 1971 he joined the Defence Quality Organization and held important appointments till in 1987 he was appointed Director General, Defence Quality Assurance Organization. After retirement he was appointed Director General, Bureau of Indian Standards. In addition to standards he pioneered the quality movement in India. By his sustained efforts through TV, print media and seminars he brought quality into national focus.He is also an internationally recognized quality expert and his new book ISO 9000 : Guidelines for developing countries has recently been published by ISO and UNCTAD/GATT. He is the chairman of MSD Council of BIS which formulates national standards of quality management. He is also an adviser to the UNITED NATIONS DEVELOPMENT ORGANIZATION ( UNIDO ).He is currently the Director General , FICCI Quality Forum.Source of information and advice

  • Research, Artwork, Design and DevelopmentPravin RajpalMr.Pravin Rajpal is a Chartered Accountant with more than 15 years of work experience in some of the best professionally managed companies in India. At present he is the CEO of Competitive Edge, Management Consultants.