Background on competitive manufacturing revised 2009

8/7/2019 Background on competitive manufacturing revised 2009

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Competitive Manufacturing

This overview and glossary on Competitive Manufacturing (CM) was prepared by Workbase for providersinterested in approaching manufacturing companies with a view to providing workplace literacyprogrammes.

CM practices are increasingly being implemented by companies in New Zealand. The introduction of CMpractices may provide opportunities for workplace literacy programmes as CM implementation requiresemployees to meet increased literacy demands.

Employees in supervisory and management positions in manufacturing organisations may be involved inCM training. Many CM practices will be regularly discussed in New Zealand manufacturing operations.

What is Competitive Manufacturing?

CM is a systematic approach to producing high quality goods for the least cost with the least waste.

CM is used to describe a range of manufacturing practice concepts and techniques, a number of whichhave been around for some time.

Many CM practices originated in Japan (but not under the CM name) and have gained widespreadacceptance throughout the manufacturing sector worldwide.

CM is also known as Lean Manufacturing, World Class Manufacturing (WCM), Just in Time manufacturing(JIT) or the Toyota Production System (TPS).

CM covers a large range of manufacturing practice and approaches leading to improved performanceincluding:

agile manufacturing

preventative and predictive maintenance approaches

statistical process control systems including Six Sigma and Three Sigma

Just in Time, Kanban and other pull related manufacturing control systems

supply, value, and demand chain monitoring and analysis

Kaizen and other continuous improvement systems

5S

monitoring and data gathering systems such as Systems Control and Data Acquisition (SCADA)

software, Enterprise Resource Planning (ERP) systems, Manufacturing Resource Planning (MRP), andproprietary systems such as SAP

supporting skills such as teamwork and communication.

Brands linked to CM implementation in the workplace include Kaizen, The Toyota Way, TPM, 20 Keys andTQM.

Possibly some of the terms and concepts in the above list may be unfamiliar to you. We have provided aninitial glossary (based on a Google search) for some of these manufacturing terms. However, we suggestyou also do your own research.


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Competitive Manufacturing in New Zealand

A number of New Zealand companies have adopted or are instituting CM.

The impetus for training in CM began in Australia where it was known as the Competitive ManufacturingInitiative (CMI).

http://www.cmi.org.au

In 2005 a Consortium of New Zealand Industry Training Organisations (ITOs) entered into an agreementwith CMI Australia to share resources and create a trans-Tasman suite of qualifications for CM.

The involved ITOs (ATITO, BITO, Competenz, FITEC, FITO, JITO, NZITO, PaMPITO, PrintNZ and SITO)have set up a website which provides background information on CM.

http://www.cmi.org.nz/index.aspTraining packages from CMI Australia have been adapted and registered on the National QualificationsFramework (NQF) as Unit Standards, National Certificates and a National Diploma, ranging from Levels 2to 7.

http://www.nzqa.govt.nz/framework/explore/domain.do?frameworkId=725118104#nqf-top

Fonterra are implementing CM practices and were instrumental in getting the CM unit standardsregistered on the NQF. Fonterra have the first CM graduates. For more information on the Fonterraexperience, visit:

http://www.scoop.co.nz/stories/BU0606/S00080.htm

The Department of Trade and Enterprise are encouraging companies to adopt CM practices. This site hasa short video on the results of a Lean Business programme in a NZ company.

http://www.nzte.govt.nz/develop-knowledge-expertise/Pages/Improve-your-business-productivity.aspx

New Zealands largest manufacturing union, the Engineering, Printing & Manufacturing Union, welcomed

CMI in 2006, saying this initiative will make a real contribution to improving manufacturing performanceacross the economy.http://www.epmu.org.nz/SITE_Default/news/union_news/2006_11_03_CMI.asp

A number of ITOs, providers and consultancies are offering CM courses or advice. For example:

NZITO

http://www.nzito.co.nz/RP.jasc?session=802995999475D6ADC5AA39A3BO7FB5&PAGE=N249P2

AUT

http://www.aut.ac.nz/study-at-aut/study-areas/engineering/study-options/diploma-in-competitive-manufacturing

The University of Auckland

http://www.shortcourses.auckland.ac.nz/courses/295/

Productivity Solutions Ltd

http://www.solutions4productivity.com/

Strategia

http://www.strategia.net.nz/default.aspx?Page=121

Thornley Group

http://www.thornleygroup.co.nz/home

Competitive ManufacturingWorkbase: The New Zealand Centre for Workforce Literacy Development Page 2
http://www.cmi.org.au/http://www.cmi.org.nz/index.asphttp://www.nzqa.govt.nz/framework/explore/domain.do?frameworkId=725118104#nqf-tophttp://www.scoop.co.nz/stories/BU0606/S00080.htmhttp://www.nzte.govt.nz/develop-knowledge-expertise/Pages/Improve-your-business-productivity.aspxhttp://www.epmu.org.nz/SITE_Default/news/union_news/2006_11_03_CMI.asphttp://www.nzito.co.nz/RP.jasc?session=802995999475D6ADC5AA39A3BO7FB5&PAGE=N249P2http://www.aut.ac.nz/study-at-aut/study-areas/engineering/study-options/diploma-in-competitive-manufacturinghttp://www.aut.ac.nz/study-at-aut/study-areas/engineering/study-options/diploma-in-competitive-manufacturinghttp://www.aut.ac.nz/study-at-aut/study-areas/engineering/study-options/diploma-in-competitive-manufacturinghttp://www.shortcourses.auckland.ac.nz/courses/295/http://www.solutions4productivity.com/http://www.strategia.net.nz/default.aspx?Page=121http://www.thornleygroup.co.nz/homehttp://www.thornleygroup.co.nz/homehttp://www.strategia.net.nz/default.aspx?Page=121http://www.solutions4productivity.com/http://www.shortcourses.auckland.ac.nz/courses/295/http://www.aut.ac.nz/study-at-aut/study-areas/engineering/study-options/diploma-in-competitive-manufacturinghttp://www.nzito.co.nz/RP.jasc?session=802995999475D6ADC5AA39A3BO7FB5&PAGE=N249P2http://www.epmu.org.nz/SITE_Default/news/union_news/2006_11_03_CMI.asphttp://www.nzte.govt.nz/develop-knowledge-expertise/Pages/Improve-your-business-productivity.aspxhttp://www.scoop.co.nz/stories/BU0606/S00080.htmhttp://www.nzqa.govt.nz/framework/explore/domain.do?frameworkId=725118104#nqf-tophttp://www.cmi.org.nz/index.asphttp://www.cmi.org.au/


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Glossary

Term Definition/explanation

AgileManufacturing

Lean Manufacturing is about being very good at doing the things you can control. AgileManufacturing deals with the things you cannotcontrol. Agility is the ability to thrive and

prosper in an environment of constant and unpredictable change. The key to AgileManufacturing is having the systems and technology in place to quickly manufacture newproducts in order to meet the constantly changing needs of specific customers. Here are afew of the reasons that Agile Manufacturing is important:

Global competition is intensifying.

Mass markets are fragmenting into niche markets.

Co-operation among companies is becoming necessary, including companieswho are in direct competition with each other.

Customers expect low volume, high quality, and customised products.

Very short product life-cycles, development time, and production lead times arerequired.

Customers want to be treated as individuals.The concept of Agile Manufacturing is often at odds with the concept of mass production.

The trend towards a multiplicity of finished products with short development and productionlead times has led many companies into problems with inventories, overheads, andinefficiencies. Traditional mass-production approaches do not apply to products where thecustomers require small quantities of highly customised, design-to-order products, and whereadditional services and value-added benefits like product upgrades and futurereconfigurations are as important as the product itself.

Edited from http://www.technet.pnl.gov/dme/agile/index.stm.

5S 5S refers to the five structured programmes using the Japanese principles of seiri, seiton,seison, seiketsu, and shitsukeor commonly referred to as sort, set, shine, standardise andsustain, respectively.

The Japanese words are shorthand expressions for principles of maintaining an efficient andeffective workplace and office.

The 5S approach is promoted as a set of strategies, systems and techniques that provide astandard approach to housekeeping.

Although there are different anglicised versions of the Japanese words within the context ofLean Manufacturing, the 5S is collectively alluded to as the Pillars of Good Housekeepingfor successful lean implementation.

5S is regarded as the basic Kaizen tool to begin, support and sustain the lean path to higherproductivity and efficiency.

Edited from http://wcm.nu.

Inventory In business management inventory consists of a list of goods and materials held in stock.

From http://en.wikipedia.org/wiki/Inventory.

JIT (Just inTime)

Just-in-time (JIT) is defined as a philosophy of manufacturing based on planned eliminationof all waste and on continuous improvement of productivity. JIT has also been described asan approach with the objective of producing the right part in the right place at the right time.

Waste results from any activity that adds cost without adding value, such as the unnecessarymoving of materials, the accumulation of excess inventory, or the use of faulty productionmethods that create products requiring subsequent rework.

JIT is basically about carrying just enough raw materials to manufacture just enoughproducts for the customer, just when they want it and manufacturing these products asaccurately and time efficient as possible.

http://www.technet.pnl.gov/dme/agile/index.stmhttp://www.technet.pnl.gov/dme/agile/index.stmhttp://wcm.nu/http://wcm.nu/http://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://wcm.nu/http://www.technet.pnl.gov/dme/agile/index.stm


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JIT (also known as lean productionor stockless production) should improve profits and returnon investment by reducing inventory levels (increasing the inventory turnover rate), reducingproduct variability, improving product quality, reducing production and delivery lead times,and reducing other costs (such as those associated with machine setup and equipmentbreakdown).

JIT applies primarily to repetitive manufacturingprocesses in which the same products andcomponents are produced over and over again. The general idea is to establish flowprocesses by linking work centres so that there is an even, balanced flow of materialsthroughout the entire production process, similar to that found in the assembly line.

The basic elements of JIT were developed by Toyota in the 1950s and became known as theToyota Production System (TPS). JIT was well-established in many Japanese factories bythe early 1970s. JIT began to be adopted in the U.S. in the 1980s (General Electric was anearly adopter) and the JIT/lean concepts are now widely accepted and used.

Edited from http://personal.ashland.edu/~rjacobs/m503jit.html.

Kanban Kanban is a concept related to the lean or Just In Time (JIT) production, but these twoconcepts are not the same thing. According to Taiichi Ohno, the man credited with

developing JIT, Kanban is the means through which JIT is managed.

Kanban is a signaling system. Kanban uses cards (or other markers) to signal the need foran item.

For example, in the production of a widget, the operator has two shelves, one on either sideof the workplace. The raw materials arrive on one shelf and the finished article on the other.These shelves act as Kanbans.

The outgoing Kanban signals the customer's need so that when it is empty, the operatormust produce one more widget.

Kanban is frequently known as a "pull" system, as everything is pulled in response to pastdemand. Demand forecasts are not used in Kanban systems. This is the opposite of thetraditional "push" manufacturing philosophy, in which everything is made to forecasted future

needs.

The Kanban system can be visualised as a "three bin system" - one bin on the factory floor,one bin in the factory store and one bin at the suppliers store. The bins usually have aremovable card that contains the product details and other relevant information - the Kanbancard. When the bin on the shop floor is empty, the Kanban card is removed and given to thestore. The store then replaces the bin on the factory floor with a full bin which also contains aremovable Kanban card. The store then contacts the supplier and indicates the need toreplenish the product on the Kanban card. The product also containing a Kanban card isdelivered into the factory store completing the final step to the system. This system ensuresthe store will never run out of product, providing of course, the cards are reliably collectedfrom empty containers.

The system is a loop, providing the exact amount required, with only one spare so there willnever be an issue of over-supply.

Most factories use a coloured board system (Heijunka Box). This consists of a board createdespecially for the purpose of holding the Kanban cards.

Edited from http://www.productivitypress.com/productdetails.cfm?sku=2695.

Kaizen The Kaizen philosophy is drawn from the Japanese word kai which means continuous andzen meaning improvement or wisdom. The Kaizen management philosophy is aboutmaking continuous improvement - slow, incremental but constant.

The Kaizen way encourages small, day-to-day, yet continuous and never-endingimprovement processes involving everyone from managers to workers using common senseand direct knowledge of the activity.

Kaizen is different from the Western pragmatic why-fix-it-if-it-aint-broke philosophy. Kaizenphilosophy is Everything - even if it aint broke - can be made better!

http://personal.ashland.edu/~rjacobs/m503jit.htmlhttp://personal.ashland.edu/~rjacobs/m503jit.htmlhttp://www.productivitypress.com/productdetails.cfm?sku=2695http://www.productivitypress.com/productdetails.cfm?sku=2695http://personal.ashland.edu/~rjacobs/m503jit.html


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In business applications, Kaizen embraces most of the successful Japanese concepts -Kanban, 5S, quality circles (QCs), just-in-time (JIT) delivery, automation, suggestionssystems, etc.

Setting the structure for Kaizen is very important. This includes establishing self-directedteams that analyse problems and generate solutions.

Kaizen is about setting achievable, replicable standards and then continually improving thosestandardsbecause persistent improvements are crucial for the long-term profits.

Kaizen is not a method or technique. In the Kaizen system, all existing and standardprogrammes and techniques are still actively used, albeit on an improved level.

Kaizen is about the support given to front-liners to help them improve the way work is done.

Kaizen is an important part of Total Productive Maintenance (TPM), World ClassManufacturing (WCM), Lean Manufacturing and Six Sigma.


Lean

Manufacturing

Lean Manufacturing is a modern management philosophy inspired by the Japanese concept

of Kaizen (the strategy of continuous improvement) that aims to eliminate waste in theproduction system.

The ultimate goal of the Lean Manufacturing methodology is to improve and speed upproduction by eliminating quantifiable waste in manufacturing and production. Eliminatingwaste results in improving the bottom line. Lean Manufacturing addresses the non-productive resources in key areas of operations that are not beneficial to the entireproduction process.

The Lean Manufacturing approach identifies common problems in operations - like defectiveequipment, overproduction, loose inventories, time-motion lags, over-processing, over-staffing, delivery issues, unreasonable floor space, surplus and material leftovers, qualitylosses, etc. These are immediately addressed and corrected with the purpose of reducinglead-times, improving quality, lowering production costs and achieving substantial results.

A Lean Manufacturing system offers tangible and measurable results in terms of quality,efficiency and output.

Lean Manufacturing principles are also known as the Toyota Production System (TPS).When the Toyota Motor Company was faced by daunting material and financial resourceproblems after the Second World War they developed a highly disciplined and processfocused production system with the sole objective of minimising the consumption ofresources that did not add value to the product.

The word lean is used to reflect the Japanese business approach in employing lesshuman resource, less money/capital, less materials etc in all aspects of business operations.

The Lean Manufacturing or Lean Production principles are the reasons why Toyota has beenso successful. Because of Toyotas success manufacturing industries all over the world have

or are adopting the same Japanese production discipline (to different degrees), hoping toachieve the same success.

Wherever there is waste, the lean philosophy and its applications can be adopted anddeveloped to improve the entire process chain from ordering paperclips and ink, toconserving water and electricity.

Lean Manufacturing techniques are not limited to the manufacturing sector. They can alsobe applied to organisations like the Government or other service agencies, or at home or inthe office - because every workplace has elements that do not provide value to the wholework process.

Today, Lean Manufacturing techniques or lean thinking have become an essential part themanufacturing sector. Lean Manufacturing has become not only an important management

tool but also an approach to continuously improve fabrication processes/methodologies andcreatively adopt changes to minimise consumption and maximise production.


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Lean Manufacturing is a proven approach to reduce waste and streamline operations. LeanManufacturing is a philosophy of continually increasing the proportion of value added activityof a business through ongoing waste elimination. A Lean Manufacturing approach providescompanies with tools to survive in a global market that demands higher quality, fasterdelivery and lower prices.

Specifically Lean Manufacturing: reduces the waste chain

reduces inventory and floor space requirements

creates more robust production systems

develops appropriate material delivery systems

improves layouts for increased flexibility

Edited from http://www.sixsigmasystems.com/what_is_six_sigma.htm.

The University of Auckland is offering courses on Lean Manufacturing. Their course outlineprovides a good summary.

http://www.shortcourses.auckland.ac.nz/courses/295/#course-topics

Predictivemaintenance

Predictive and preventive maintenance both aim to prevent costly breakdowns of machinerywhich interrupt production schedules.

A predictive maintenance program aims to minimise unscheduled breakdowns of all electricaland mechanical equipment in the plant, to ensure that repaired equipment is in acceptablecondition and identify problems before they become serious. Basically it operates on theadage a stitch in time saves nine and is particularly relevant where plant breakdown iscostly and disrupts production.

Predictive maintenance is both a philosophy and a set of approaches that monitors the actualoperating condition of plant equipment and systems to optimise total plant operation.

A predictive maintenance system monitors the actual condition of the plant machinery and

schedules maintenance as it is actually needed rather than on relying on average lifestatistics (aka mean-time-to-failure) to schedule preventive maintenance.

A comprehensive predictive maintenance management programme utilises a combination oftools e.g. thermal imaging, vibration monitoring, lubricating oil analysis and other nondestructive testing techniques to obtain the actual operating condition of critical plantsystems. Based on this factual data maintenance activities are scheduled on an as-neededbasis.

Including predictive maintenance in a comprehensive maintenance management programmeoptimises the availability of process machinery and greatly reduces the cost of maintenance.It improves product quality, productivity and profitability.

Edited from http://www.ferret.com.au/articles/ad/0c0259ad.asp.

Preventivemaintenance

The common denominator of preventive maintenance programmes is the schedulingguideline. All preventive maintenance management programmes assume that machines willdegrade within the statistical time frame typical for its particular classification.

The actual implementation of preventive maintenance varies greatly. Some programmes areextremely limited and consist of lubrication and minor adjustments. More comprehensivepreventive maintenance programmes schedule repairs, lubrication, adjustments and machinerebuilds for all critical machinery in the plant. For example, a single-stage, horizontal split-case centrifugal pump will normally run 18 months before its wear parts should be replaced.Using preventive management techniques, the pump would be removed from service andrebuilt after 17 months of operation.

The problem with this approach is that the mode of operation and system or plant specific

variables directly affects the normal operating life of machinery. The mean-time-between-failures (MTBF) will not be the same for a pump that is handling water and one handlingabrasive slurries. The normal result of using MTBF statistics to schedule maintenance iseither unnecessary repairs or catastrophic failure.

http://www.sixsigmasystems.com/what_is_six_sigma.htmhttp://www.sixsigmasystems.com/what_is_six_sigma.htmhttp://www.shortcourses.auckland.ac.nz/courses/295/#course-topicshttp://www.ferret.com.au/articles/ad/0c0259ad.asphttp://www.ferret.com.au/articles/ad/0c0259ad.asphttp://www.ferret.com.au/articles/ad/0c0259ad.asphttp://www.shortcourses.auckland.ac.nz/courses/295/#course-topicshttp://www.sixsigmasystems.com/what_is_six_sigma.htm


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In the example outlined above, the pump may not need to be rebuilt after 17 months.Therefore the labour and material used to make the repair was wasted. Or if the pump failsbefore 17 months the cost may be greater as production may be halted. In both of theseexamples preventive maintenance is not as effective as predictive maintenance.

Analysis of maintenance costs has shown that a repair is reactive (i.e. after failure) the cost

will normally be three times greater than the same repair made on a scheduled basis.Edited from http://www.ferret.com.au/articles/ad/0c0259ad.asp.

Preventive andpredictivemaintenance benefits of theseapproaches

Effective use of preventive maintenance, including predictive technologies, will eliminatemuch of the 33% to 50% of maintenance expenditure that is wasted by most manufacturingand production plants.

Based on historical data in the USA, the initial savings generated by effectivepreventive/predictive maintenance programmes fall into the following areas:

Elimination of unscheduled downtime caused by equipment or system failures.Typically, reductions of 40% to 60% are achieved within the first two years and up to90% reductions have been achieved and sustained within five years.

Increased manpower utilisation. Statistically, the average "wrench-time" of amaintenance craftsperson is 24.5% or about 2 hours per shift. By identifying theprecise repair task needed to correct deficiencies within a plant asset, as well as theparts, tools and support needed to rectify the problem, preventive/predictivemaintenance can dramatically increase effective "wrench-time". Most plants havebeen able to achieve and sustain 75% to 85% effective utilisation.

Increased capacity. The primary benefit of effective preventive/predictive maintenanceprogrammes is an increase in the throughput or production capacity of the plant.Short-term, i.e. one to three years, increases in sustainable capacity have rangedbetween 15% and 40%. Long-term improvements of 75% to 80% have been achieved.

Reduction of maintenance expenditures. In some cases, actual maintenanceexpenditures will increase during the first year following implementation of an

effective preventive/predictive programme. This increase, typically 10% to 15%, iscaused by the inherent reliability problems discovered by the use of predictivetechnologies. When these problems are eliminated, the typical result is a reduction inlabour and material cost of between 35% and 60%.

Increased useful life. Typically, the useful operating life of plant assets will beextended by 33% to 60%. Detecting incipient problems or deviations from optimumoperating conditions before damage to equipment occurs derives this benefit.Making minor adjustments or repairs and not permitting a minor deficiency frombecoming a serious problem can extend the effective useful life extended almostindefinitely.

Summary

Artificially high maintenance costs caused by a combination of ineffective management

methods and the lack of timely, factual knowledge of asset condition represent a substantialopportunity for almost every manufacturing and production facility worldwide.

Effective use of the preventive/predictive technologies provides the means to take advantageof this opportunity. Used correctly, the 33% to 50% of wasted maintenance expenditures canbe eliminated and effective use of plant resources, both production and maintenance can beachieved and sustained.

Edited from http://www.ferret.com.au/articles/ad/0c0259ad.asp.

Pull systems A pull system is where processes are based on customer demand. The concept is that eachprocess is manufacturing each component in line with another department to build a final partto the exact expectation of delivery from the customer. Because the production processesare designed to produce only what is deliverable the business becomes leaner as the

business is not holding excessive stock levels of raw, part-finished, and finished materials.

One of main identifier of pull systems comes in the form of having Kanban methods in theproduction cycle.

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In essence a Kanban can be described as a visual aid which is used to show that either aprocess is finished or requires work or more materials. The aim of having a visual aid is thatthe person who either feeds work off you or gives you work becomes aware of your needsquickly. Kanban is a concept that lends itself to high turnaround industries, but it can beapplied to other environments.

Unfortunately pull systems do not lend themselves to all business types e.g. because ofproduct types, lead times and any stock holding arrangements with customers.

However, by having pull systems in some production processes, companies can reduce leadtimes and perhaps associated costs.

Edited from http://elsmar.com/Pull_Systems/.

Kanban is frequently known as a "pull" system, as everything is pulled in response to pastdemand. Demand forecasts are not used in Kanban systems. This is the opposite of thetraditional "push" manufacturing philosophy, in which everything is made to forecasted futureneeds.

Edited from http://en.wikipedia.org/wiki/Kanban.

Push systems An important determinant of the relative merits of "push" and "pull" approaches is the qualityof demand forecasts. If demand forecasts are good, a good "push" system will produce justthe right quantities at the right times. However in contexts where demand is difficult toforecast, the best one can do is to quickly respond to observed demand. This is exactly whata Kanban system does.

"Push" systems can encounter serious difficulties when demand forecasts turn out to beinaccurate.

Edited from http://en.wikipedia.org/wiki/Kanban.

SCADA SCADA is the acronym for Supervisory Control And Data Acquisition. The term refers to alarge-scale, distributed measurement (and control) system.

SCADA systems are used to monitor or to control chemical, physical or transport processes.From http://en.wikipedia.org/wiki/SCADA.

Six Sigmasystems

Six Sigma systems were developed by Motorola in 1987.

Six Sigma systems are a data and analysis driven method which identify numbers of errorsand then find ways to systematically reduce the error count.

In Six Sigma, statistical tools usually follow the DMAIC step - or the Define, Measure,Analyze, Implement and Control charts.

The Six Sigma way is to understand the customers needs, gather valuable information anddata from the processes, and make accurate statistical analysis from it to improve theprocesses.


Six Sigma is a philosophy of doing business with a focus on eliminating defects throughfundamental process knowledge. Six Sigma methods integrate principles of business,statistics and engineering to achieve tangible results.

Six Sigma tools are used to improve the processes and products of a company. They areapplicable across every discipline including: Production, Sales, Marketing, Design,Administration and Service.

When skilfully applied, Six Sigma can:

reduce costs by 50% or more through a self-funded approach to improvement

reduce the waste chain

Result in a better understanding of customer requirements

improve delivery and quality performance

http://elsmar.com/Pull_Systems/http://elsmar.com/Pull_Systems/http://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/SCADAhttp://en.wikipedia.org/wiki/SCADAhttp://wcm.nu/http://wcm.nu/http://wcm.nu/http://en.wikipedia.org/wiki/SCADAhttp://en.wikipedia.org/wiki/Kanbanhttp://en.wikipedia.org/wiki/Kanbanhttp://elsmar.com/Pull_Systems/


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provide critical process inputs needed to respond to changing customerrequirements

develop robust products and processes

drive improvements rapidly with internal resources.

From http://www.sixsigmasystems.com/what_is_six_sigma.htm.

Total ProductiveManufacturing(TPM)

TPM is an initiative that creates a collaborative approach among all stakeholders within anorganisation - particularly between operations and maintenance - in an effort to achieveproduction efficiency, uninterrupted operations and ensure a quick, proactive maintenanceresponse to prevent equipment-specific problems.

The goal of TPM is to create a production environment free from mechanical breakdownsand technical disturbances by involving everybody in maintenance duties without heavilyrelying on mechanics or engineers.

TPM is one of the most effective ways to create a lean organisation with reduced cycle timeand improved operational efficiency.

Modernization and the ongoing automation in different industries has increased the gap

between operators and their machines.

Years ago, machine operators were limited to manning their respective posts. Wheneverthere was mechanical trouble, operators would stop working and would call in the mechanicsto fix the problem. Even with the slightest snag, operators would leave everything to the so-called experts for fear of making the problem worse, and also they didnt want to take onthe mechanics jobs.

Traditional mechanics enjoyed their specialist trade. However, the result of thisspecialisation was an immense amount of waste in man hours, production time, opportunitylost, and ballooning maintenance expense.

Autonomous maintenance by operators is a key element of TPM.

Workshops and training are given to improve to the interaction between people in operations

and maintenance. The objective of the training is the implementation of improved OEE(Overall Equipment Efficiency) metrics. The implementation of TPM is easier if 5S isalready working in the plant.


Value chainanalysis

Value Chain Analysis describes the activities that take place in a business and relates themto an analysis of the competitive strength of the business. Influential work by Michael Portersuggested that the activities of a business could be grouped under two headings:

1 Primary Activities - those that are directly concerned with creating and delivering aproduct (e.g. component assembly).

2 Support Activities - which whilst they are not directly involved in production,may increase effectiveness or efficiency (e.g. human resource management). It is rarefor a business to undertake all primary and support activities.

Value Chain Analysis is one way of identifying which activities are best undertaken by abusiness and which are best provided by others ("out sourced").

Linking Value Chain Analysis to Competitive Advantage

What activities a business undertakes is directly linked to achieving competitive advantage.For example, a business which wishes to outperform its competitors through differentiatingitself through higher quality will have to perform its value chain activities better than theopposition. By contrast, a strategy based on seeking cost leadership (i.e. lower costs) willrequire a reduction in the costs associated with the value chain activities, or a reduction inthe total amount of resources used.

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Primary Activities

Primary value chain activities include:

Primary Activity Description

Inbound logistics All those activities concerned with receiving and storing externallysourced materials.

Operations The manufacture of products and services - the way in which resourceinputs (e.g. materials) are converted to outputs (e.g. products).

Outbound logistics All those activities associated with getting finished goods and servicesto buyers.

Marketing and salesEssentially an information activity - informing buyers and consumersabout products and services (benefits, use, price etc).

Service All those activities associated with maintaining product performanceafter the product has been sold.

Support Activities

Support activities include:

SecondaryActivity

Description

Procurement This concerns how resources are acquired for a business (e.g. sourcingand negotiating with materials suppliers).

HumanResourceManagement

Those activities concerned with recruiting, developing, motivating andrewarding the workforce of a business.

TechnologyDevelopment

Activities concerned with managing information processing and thedevelopment and protection of "knowledge" in a business.

Infrastructure Concerned with a wide range of support systems and functions such as

finance, planning, quality control and general senior management.

Steps in Value Chain Analysis

Value chain analysis can be broken down into a three sequential steps:

1 Break down a market/organisation into its key activities under each of the majorheadings in the model.

2 Assess the potential for adding value via cost advantage or differentiation, oridentify current activities where a business appears to be at a competitivedisadvantage.

3 Determine strategies built around focusing on activities where competitive advantagecan be sustained.

From http://www.tutor2u.net/business/strategy/value_chain_analysis.htm.

http://www.tutor2u.net/business/strategy/value_chain_analysis.htmhttp://www.tutor2u.net/business/strategy/value_chain_analysis.htmhttp://www.tutor2u.net/business/strategy/value_chain_analysis.htm


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World ClassManufacturing(WCM)

The motivating factors behind the World Class Manufacturing (WCM) are:

to improve operations management across all functional units, departments orsectors

to equip companies with tools that will enable them to become competitive andresponsive to the changing market landscape.

For many years manufacturing was internally focused and operationally compartmentalised.Workers often completed their jobs without understanding the impact of their work on thewhole operation and on customers.

Previously critical functions such as quality control, engineering, purchasing were separated.This approach was often described as a wall approach to manufacturing.

These so-called walls inhibited direct and continuous interaction between functions andisolated decision-makers from both the inside and outside worlds.

This isolation resulted in products that did not meet customer expectations - and internaloperational snags such as losses in time, money, opportunity, etc.

The goal of implementing a lean word-class enterprise is to improve all aspects of business

and capitalise on the advances gained from applying technically-proven trade methods andprinciples to be profitable and eventually be globally competitive.

As the manufacturing sector faces new challenges in the midst of competition, WCMadvocates strive continuously to improve on the areas of delivery, safety, quality, operatingcost and profit margins simultaneously, eliminating waste in the production system byapplying appropriate tools and techniques at all levels within the organisation.

WCM is a process that integrates key cross-functional operations in ways that meet preciselywhat the customers specifically need and want from a product. WCM is not an end it is aprocess.

From http://wcm.nu.

Competitive Manufacturing
http://wcm.nu/http://wcm.nu/http://wcm.nu/

Documents

Background on competitive manufacturing revised 2009