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7 steps to world class manufacturing
This document outlines 7 steps to becoming a world-class manufacturer: 1) Focus on competitive quality, 2) Implement lean manufacturing systems, 3) Achieve cost efficiency, 4) Reduce time-to-market, 5) Exceed customer expectations, 6) Streamline outsourcing processes, and 7) Have a global perspective. General H.Lal is identified as a source of information and advice on quality and manufacturing excellence, while Pravin Rajpal is credited with research, artwork, design and development for the document.
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7 steps to world class manufacturing
- 1. 7 steps toWorld Class Manufacturing Competitive Edge FICCI Management Consultants
- 2. What does itmean 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 itmean 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 itmean to be a world-class Manufacturer? It means you are in control and your competitors struggle to emulate your success.
- 5. What does itmean 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 toworld 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 “Competitive Click 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 - how Continuous improvement guidelines better you are from the rest of your competitors. Model of Continuous improvement SMAIC in action Measures of Mfg. excellence Everybody in the organization must think and demonstrate that they Benchmarking - technique can do better. The need of the hour is to constantly challenge the Manufacturing best practices status-quo and develop a constructive level of dissatisfaction with TQM Rolling plan the present performance. Benchmarking with Japan BPR Kaizen PDCA Reliability improvement FMEA Six sigma
- 8. 2. Implement LeanManufacturing systems Lean manufacturing is an overall methodology that seeks to minimize the resources required for production by eliminating Click on topics given below waste (non-value added activities) that inflate costs, lead times Lean Management and inventory requirements, and emphasizing the use of Non-Value Adding Activities preventive maintenance , quality improvement programs, pull Reducing set-up time systems and flexible work forces and production facilities. Five S-technique Just In time Principles of lean include zero waiting time, zero inventory, Total Productivity Maintenance scheduling (internal customer pull instead of push system), batch TPM Checklist to flow (cut batch sizes), line balancing and cutting actual process Supplier quality improvement times. Supplier evaluation Supplier best practices Supply chain Takt Time Taguchi Methods Root cause analysis Kanban Value Chain Mapping
- 9. 3. Achieve costefficiency 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 cost Click on topics given below structure enjoy an obvious advantage in profitability and the Quality,Cost & Profit ability to adjust pricing to meet competitive pressures if necessary Cost of Quality to maintain or gain market share. Quality Cost-Function Wise Non-Value Adding Activities Costs are really just part of the scoreboard. When a company Gemba Kaizen - A low cost approach implements world-class operational processes, it improves Analysis of variance multiple measurements simultaneously,including cost, lead times, Controlling variation inventory and customer service. Mistake Proofing Pokayoke Reducing Defectives through FMEA Waste Assessment Waste Reduction Design 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 below Time based competition Good ideas are not enough; well-managed processes for bringing Creativity & innovation new products to market faster than the competitors can lead to Niche Marketing significant competitive advantages. Bringing products faster into SCAMPER the market does represent some element of risk, which can be properly evaluated. New product development Risk Analysis Risk Management Ten commandments of time
- 11. 5. Exceed Customer Expectations Click on topics given below Are you a customer driven org. The ultimate key to success in any business enterprise is to please Customer expectations your customers. The most successful companies don’t just meet Exceeding expectations customer expectations, they exceed them and beat the competition Competitive Edge by setting the standards at a level that makes it difficult, if not Customer supplier model impossible, for others to surpass. Internal health Quality Quality MIS Quality management principles Customer satisfaction measurement Customer loyalty Customer practices of global leaders Customer survey forms Quality Function Deployment
- 12. 6. Streamline OutsourcingProcesses 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 this Process classification framework goal is through partnerships with companies that have attained superior capabilities in particular phases of the process-like Principles 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 aGlobal perspective Click on topics given below There’s no question the world is shrinking, and virtually every business is now involved in some form of international trade International Marketing —whether marketing and selling to customers in other Shingo 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 informationand advice 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.
- 15. Research, Artwork, Designand Development Pravin Rajpal Mr.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.