WORLD CLASS MANUFACTURING

World Class Manufacturing (WCM)

Presented By Roll Numbers

1) Anita Agarawal 022) Dhawal Ambani 033) Sushma Bhandari 044) Gaurang Bharkhada 055) Sanjog Devrukhkar 116) Shrinivas Krishnamurty 197) Arun Singh 50

Presented To

Kedar Sawant Sir

(MFM Sem-II : 2008-11)

Meaning & Scope

• It refers to the practice followed in a manufacturing organizations, in order to consistently deliver exceptional performance, frequently in excess of expectations.

• World Class Manufacturers are those that demonstrate industry best practice.

CriteriaThere are two overriding criteria when using this checklist to judge whether your company can be regarded as World Class

1) How does the company compare with its best competition? 2) Has the company increased its score since last year?

Few Top Indian Manufacturing Companies • Aditya Birla Group • Hindustan Lever Network• Mahindra & Mahindra• Bombay Dyeing• Reynolds India• Hindustan Paper Corporation

Ltd• Haldia Petrochemicals• Emani Group• Mittal Dhatu Rashayan Udyog• Surya Salt

How a WCM is achieved

• Develop the awareness of the need to make the transition to World Class Manufacturing

• Develop the ability to search for relevant tools and to apply them effectively

• Monitor progress so that an improvement program can be systematically utilized.

Implementing WCM :Tools to Measure and Record

ProgressSuccess Factors WCM Tools Measurement Indicators1. Cost control Just-in-time logistics,

quality at source and supply chain management tools

· Inventory holdings· Absence of defects and rework· Cost of incoming materials

2. Quality Statistical Process Control, fool-proofing to prevent errors, Pareto analysis of types and causes ofproduction defects

· Customer return rates· Internal reject, rework & scrap rates· Supplier quality Performance

3. External flexibility

Just-in-time logistics, quality at source and supply chain management tools

· Time from customer order to delivery· Delivery frequency & reliability to customers· Delivery frequency and reliability of suppliers

Success Factors WCM Tools Measurement Indicators4. Internal flexibility

Cellular layouts, single unitflow, production pulling,Kanban signaling system,single-minute exchange ofdies for rapid machine changeover, supply chainmanagement

· Machine changeover times· Batch and lot sizes· Inventory levels· Throughput time through factory · Machine utilization levels

5. Capacity to change(Human resourcedevelopment)

• Multi-tasking, • Multi skilling,• Quality circles,• Kaizen groups, • Training,• Incentive schemes.

· Numeracy and literacy levels· Labor/management turnover levels· Absenteeism rates· Training expenditure and types of training· Employee development· Suggestion schemes/continuous improvement

6. Innovation capacity

Concurrent engineering,new product developmenttechniques

· R&D expenditure· Proportion of sales from new products

Critical Control Points

Mass Production World ClassManufacturing

Logistics · Large batch production· Just-in-case inventories Specialized machinery

· Single unit flow production· Just-in-time inventories· Flexible machinery and rapid machine changeover

Quality · End of line inspection· Reworking of defects

· Quality-at-source at each part of production process

Work organisation · Division of labor between skilled and unskilled workers· Specialized R&D and product development

· Multi-tasking and multi skilling· Continuous improvement in green areas as well as specialized staff

Contrasting Mass Production & WCM

The Grades for WCM

• "W“ - World class

• "X“ - Very good but not quite world class – (country class)

• "Y“ - Better than many – (city class)

• "Z“ - Poor – (village class)

WCM Check listQ1) Do you have a 99% or better level of

customer service (or product availability)?

Grade Criteria

W 99% or better customer service level (on time in full or availability).

X 95% up to 99% customer service.

Y 90% up to 95% customer service.

Z Below 90% customer service.

Q2) Does everyone in the company know who the key customers are and what differentiates the company’s products and services from the competition?

Grade CriteriaW Everyone knows key customers through a new

employee induction scheme and regular updates, meetings, notices etc.

X Most people know key customers.

Y Managers know key customers.

Z Customers known mainly on a "need to know" basis.

Q3) Do all staff who are in contact with customers have the authority and empowerment to resolve customer problems?

Grade CriteriaW A person answers telephone calls within 4 rings and takes

responsibility to deal with the call either immediately or by getting back to the caller within 24 hours. Similar standards are used for e-mail and written complaints.

X A person answers telephone calls and takes responsibility to deal with the call either immediately or by getting back to the caller within 5 days. Similar standards are used for e-mail and written complaints.

Y Customer problems are dealt with as soon as possible.Z Many customer problems are outstanding or not

satisfactorily resolved.

Grade Criteria question

W At least 75% of your shipments to customers controlled by Kanban or vendor managed inventory (i.e. shipped / delivered based on customer usage) or you are able and willing to make Kanban shipments if requested.

X Some but less than 75% of shipments under Kanban control or you are probably able to make Kanban shipments if requested.

Y You may be able to make Kanban shipments if requested.

Z You would not make shipments under Kanban control.

 

Q4) Do Kanban control your supply chain?

Types of Operation which creates a WCM UnitsThe Kanban Control Concept

Kanban control means that the authority to make or move an item is based on that item's usage unless there has been a properly approved and strictly limited deviation

Kanban control. Movement of parts shown in blue, circulation of Kanban in red. Machines are shown as circles and buffers as triangles. The last buffer is the finished goods (FG) inventory.

The Kanban messages can take the form of an e-mail, fax, card, empty container or require you to visit their plant to replenish their stock of your products (usually referred to as vendor managed inventory)

Just in Time manufacturing is a systems approach to developing and operating a manufacturing system. We will take an example of banking process:

In short, JIT means making what the market wants, when it wants it. JIT has been found to be so effective that it increases productivity, work performance and product quality, while saving costs

Just In Time (JIT) Manufacturing

JIT Improvements to Manufacturing`

Time

In Summary, JIT Systems requires Changes in:

• System Design• Organization

Attitudes and Structures• External

Relationships• New Management

Priorities

CONWIP stands for Constant Work-In-Process, and designates a control strategy that limits the total number of parts allowed into the system at the same time

CONWIP control. Movement of parts shown in blue, circulation of release authorizations in green.

CONWIP control

Once the parts are released, they are processed as quickly as possible until they wind up in the last buffer as finished goods. One way to view this is that the system is enveloped in a single Kanban cell: Once the consumer removes a part from the finished goods inventory, the first machine in the chain is authorized to load another part.

Factors which can make a WCM

Some other factors

Conclusion: Control of OperationsBefore commencing implementation of control systems there are always five beneficial things to do which will make any method of control easier to implement and make the system work better operationally (Generally world class manufacturing businesses have done these things)

Reduce time wasted in setting and reduce set up times

Form Natural Groups (cells)Reduce throughput timesPostpone product mutation Remove the trivial many, to focus on the vital few