World Class Manufacturing Final

WORLD CLASS MANUFACTURING

World Class Manufacturing (WCM) Presented By Numbers 1) 2) 3) 4) 5) 6) 7)

Anita Agarawal Dhawal Ambani Sushma Bhandari Gaurang Bharkhada Sanjog Devrukhkar Shrinivas Krishnamurty Arun Singh

Presented To Kedar Sawant Sir (MFM Sem-II : 2008-11)

Roll 02 03 04 05 11 19 50

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.

Criteria There 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

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

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 Progress Success WCM Tools Measurement 1. Factors Cost Just-in-time logistics, control quality at source and supply chain management tools 2. Quality Statistical Process Control, fool-proofing to prevent errors, Pareto analysis of types and causes of production defects 3. External Just-in-time logistics, flexibility quality at source and supply chain management tools

·Indicators Inventory holdings · Absence of defects and rework Cost return of incoming · Customer rates ·materials Internal reject, rework & scrap rates · Supplier quality Performance · Time from customer order to delivery · Delivery frequency & reliability to customers · Delivery frequency and reliability of suppliers

Success 4. Internal Factors flexibility

WCM Tools

Measurement Cellular layouts, single unit ·Indicators Machine changeover times

flow, production pulling, Kanban signaling system, single-minute exchange of dies for rapid machine changeover, supply chain management • Multi-tasking, 5. Capacity • Multi skilling, to change • Quality circles, (Human • Kaizen groups, resource development) • Training, • Incentive schemes.

6. Innovation Concurrent engineering, capacity new product development techniques

· Batch and lot sizes · Inventory levels · Throughput time through factory · Machine utilization levels · Numeracy and literacy levels · Labor/management turnover levels · Absenteeism rates · Training expenditure and types of training · Employee development · Suggestion ·schemes/continuous R&D expenditure improvement · Proportion of sales from new products

Contrasting Mass Production & WCM

Critical Control Mass Points Production

World Class Manufacturing

Logistics

· Single unit flow production · Just-in-time inventories · Flexible machinery Quality-at-source at and each part of production process rapid machine ·changeover Multi-tasking and multi skilling · Continuous improvement in green areas as well as specialized staff

Quality

Work organisation

· Large batch production · Just-in-case inventories · EndSpecialized of line machinery inspection · Reworking of ·defects Division of labor between skilled and unskilled workers · Specialized R&D and product

The Grades for WCM • "W“ - World class • "X“ - Very good but not quite world class – (country class) • "Y“ - Better than many – (city class) • "Z“ class)

Poor

–

(village

WCM Check list Q1) Do you have a 99% or better level of customer service (or product availability)?

Grade

Criteria

W X

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

Criteria 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? Grad Criteria e W

X

Y Z

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. 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 email and written complaints. Customer problems are dealt with as soon as possible. Many customer problems are outstanding or not satisfactorily resolved.

Q4) Do Kanban control your supply chain?

 

Grad Criteria question e 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 requested. X Some Kanban but lessshipments than 75%if 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.

Types of Operation which creates a WCM Units The 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

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

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

Just In Time (JIT) Just in Time manufacturing is a systems approach to Manufacturing 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                                          

JIT Improvements to Manufacturing` In Summary, JIT Systems requires Changes in:

T ime

• System Design • Organization Attitudes and Structures • External Relationships • New Management Priorities

CONWIP control

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

control. of parts

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

Factors which can make a WCM

Some other factors

Conclusion: Control of Operations

Before 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 times Postpone product mutation Remove the trivial many, to focus on