7 steps to world class manufacturing

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  • 1. 7 steps to World Class Manufacturing Competitive EdgeFICCI Management Consultants
  • 2. What does it mean to be a world-class Manufacturer?It means being successful in your chosen market against any competition—regardless of size, country of origin or resources.
  • 3. What does it mean to be a world-class Manufacturer? It means matching or exceeding any competitor on• Quality• Innovation• Lead-time• Flexibility• Cost• Customer service
  • 4. What does it mean to be a world-class Manufacturer?It means you are in control and your competitors struggle to emulate yoursuccess.
  • 5. What does it mean to be a world-class Manufacturer? You are in in control—· In control of your markets and customers· In control of your processes &· In control of your resources Being in control doesn’t 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.
  • 6. 7 steps to world class Manufacturing 1. Focus on ‘Competitive Quality’ 2. Implement Lean manufacturing 3. Achieve cost efficiency 4. Reduce Time-to-Market 5. Exceed Customer Expectations 6. Streamline Outsourcing Processes 7. Have a global perspective
  • 7. 1. Focus on ‘Competitive Quality’ Today’s dynamic and turbulent business environment has shifted the focus of the organizations from “Quality” to “CompetitiveClick on topics given below quality”. With ever changing customer requirements, quality is no more a competitive weapon. Every organization has quality today.Assessment of performance What separates a world class organization from others is - howContinuous improvement guidelines better you are from the rest of your competitors.Model of Continuous improvementSMAIC in actionMeasures of Mfg. excellence Everybody in the organization must think and demonstrate that theyBenchmarking - technique can do better. The need of the hour is to constantly challenge theManufacturing best practices status-quo and develop a constructive level of dissatisfaction withTQM Rolling plan the present performance.Benchmarking with JapanBPRKaizenPDCAReliability improvementFMEASix sigma
  • 8. 2. Implement Lean Manufacturing systems Lean manufacturing is an overall methodology that seeks to minimize the resources required for production by eliminatingClick on topics given below waste (non-value added activities) that inflate costs, lead timesLean Management and inventory requirements, and emphasizing the use ofNon-Value Adding Activities preventive maintenance , quality improvement programs, pullReducing set-up time systems and flexible work forces and production facilities.Five S-techniqueJust In time Principles of lean include zero waiting time, zero inventory,Total Productivity Maintenance scheduling (internal customer pull instead of push system), batchTPM Checklist to flow (cut batch sizes), line balancing and cutting actual processSupplier quality improvement times.Supplier evaluationSupplier best practicesSupply chainTakt TimeTaguchi MethodsRoot cause analysisKanbanValue Chain Mapping
  • 9. 3. Achieve cost efficiency Although 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 costClick on topics given below structure enjoy an obvious advantage in profitability and theQuality,Cost & Profit ability to adjust pricing to meet competitive pressures if necessaryCost of Quality to maintain or gain market share.Quality Cost-Function WiseNon-Value Adding Activities Costs are really just part of the scoreboard. When a companyGemba Kaizen - A low cost approach implements world-class operational processes, it improvesAnalysis of variance multiple measurements simultaneously,including cost, lead times,Controlling variation inventory and customer service.Mistake ProofingPokayokeReducing Defectives through FMEAWaste AssessmentWaste ReductionDesign of experiments
  • 10. 4. Reduce Time-to-Market Customers now penalize suppliers that infringe on their time, whether through delays, mistakes or inconveniences. Today’s 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.Click on topics given belowTime based competition Good ideas are not enough; well-managed processes for bringingCreativity & innovation new products to market faster than the competitors can lead toNiche Marketing significant competitive advantages. Bringing products faster intoSCAMPER the market does represent some element of risk, which can be properly evaluated.New product developmentRisk AnalysisRisk ManagementTen commandments of time
  • 11. 5. Exceed Customer ExpectationsClick on topics given belowAre you a customer driven org. The ultimate key to success in any business enterprise is to pleaseCustomer expectations your customers. The most successful companies don’t just meetExceeding expectations customer expectations, they exceed them and beat the competitionCompetitive Edge by setting the standards at a level that makes it difficult, if notCustomer supplier model impossible, for others to surpass.Internal healthQualityQuality MISQuality management principlesCustomer satisfaction measurementCustomer loyaltyCustomer practices of global leadersCustomer survey formsQuality Function Deployment
  • 12. 6. Streamline Outsourcing Processes Outsourcing of manufacturing operations is a common practice today because it offers flexibility—the ability to change products or processes rapidly—and can often save money by exploiting economies of scale or other favorable cost factors the contractor has to offer.Click on topics given below For manufacturers, the fastest and easiest way to achieve thisProcess classification framework goal is through partnerships with companies that have attained superior capabilities in particular phases of the process-likePrinciples of outsourcing production. By partnering with world-class contract manufacturers you can reap the benefits almost immediately—well-managed processes, high quality, on time deliveries—and increase your performance and deliver to meet your customer’s 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.
  • 13. 7. Have a Global perspectiveClick on topics given below There’s no question the world is shrinking, and virtually every business is now involved in some form of international tradeInternational Marketing —whether marketing and selling to customers in otherShingo prize for Mfg. Excellence 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.
  • 14. Source of information and adviceGeneral H.LALGeneral H.Lal is a mechanical engineer. In 1971 he joined the Defence Quality Organizationand held important appointments till in 1987 he was appointed Director General, DefenceQuality Assurance Organization. After retirement he was appointed Director General, Bureauof Indian Standards. In addition to standards he pioneered the quality movement in India. Byhis sustained efforts through TV, print media and seminars he brought quality into nationalfocus.He is also an internationally recognized quality expert and his new book “ISO 9000 :Guidelines for developing countries” has recently been published by ISO andUNCTAD/GATT. He is the chairman of MSD Council of BIS which formulates nationalstandards of quality management. He is also an adviser to the UNITED NATIONSDEVELOPMENT ORGANIZATION ( UNIDO ).He is currently the Director General , FICCI Quality Forum.
  • 15. Research, Artwork, Design and DevelopmentPravin RajpalMr.Pravin Rajpal is a Chartered Accountant with more than 15 years of workexperience in some of the best professionally managed companies in India. At presenthe is the CEO of Competitive Edge, Management Consultants.