World Class Manufacturing Final June 23.pptx

3
Unit No Title of the Unit
1 World Class Manufacturing
2 WCM Overview
3 Quality and Global Competitiveness
4 Continuous Improvement
5 Elements of Lean Production
6 Just in Time (JIT)
7 Bench Marking
8 Tools for Process Improvement
Table of Contents

Syllabus
Chapter 1: Manufacturing and World Class Manufacturing
• Introduction
• The traditional batch manufacturing environment.
• New Manufacturing Era
• Business Challenges of The New Manufacturing Era
• Why We Need Fundamental Changes ?
• Business Strategy
• Global Competitiveness
• Competitive Priorities
• Competing in New Manufacturing Era
• Operating Environment of The New Manufacturing Era
• Generic Manufacturing Strategies for New Manufacturing
Era
• Strategic Planning Methodology for World Class
Manufacturing
• Implementing the World Class Manufacturing Plan
4

Syllabus
Chapter 2: WCM Overview
• Introduction
• WCM Basics
• WCM Criteria
• WCM Pillars
• WCM Implementation
• Quality in World Class Manufacturing
• Facilitating Factors of WCM
• Road to World Class Performance
• World Class Delivery
• World Class New Age Companies.
• Attributes of Excellent Companies
• Obstacle to World Class Manufacturing
Implementation
5

Syllabus
Chapter 3 Quality and Global Competitiveness
Introduction
Quality Management
Competitiveness
Quality and Global Competitiveness
Global Quality Improvement Methods
Global Economic Integration
6

Syllabus
Chapter 4: Continuous Improvement
• Introduction
• Kaizen
• Getting Started with Continuous Improvement
• Implementing Continuous Improvement
• 7QC Tools
• What Is Six Sigma?
• Lean Six Sigma
7

Syllabus
Chapter 5: Elements of Lean Production
• Introduction to Lean Manufacturing
• Laying out a Lean Production Facility
• Setup reduction
• Controlling a Lean Production Facility
• The Five Steps of Lean Implementation
• Case Study FORD
8

Syllabus
Chapter 6: Just in Time (JIT)
• Introduction JIT As an Environment
• JIT As A Control Technique
• Major Tools and Techniques of JIT
• Benefits of JIT
• Toyota Production System
9

Syllabus
Chapter 7: Bench Marking
• Introduction
• Defining Bench marking
• Levels of Bench marking
• Bench marking History
• Understanding the Tool
• Bench marking Types
• Approaches to Bench marking
• Bench marking Process Steps
• A Case Study of Competitive Bench marking
Cycle Xerox Process
• Classification of Bench marking
• Advantages & Disadvantages
10

Syllabus
Chapter 8: Tools for Process Improvement
• Who Owns Processes
• What Is Process Improvement?
• How Does Process Improvement Benefit the
Organization?
• How Does an Organization Get Started on
Process Improvement?
• Business Process Improvement Examples
• What Is in The Basic Process Improvement
Model?
• Need for Performance Measurement
• A Case Study of Competitive Bench marking Cycle
• Pareto Analysis and Examples
11

S.N Topic
1.1 Introduction
1.2 The traditional batch manufacturing environment.
1.3 New Manufacturing Era
1.4 Business Challenges of The New Manufacturing Era
1.5 Why We Need Fundamental Changes ?
1.6 Business Strategy
1.7 Global Competitiveness
1.8 Competitive Priorities
1.9 Competing in New Manufacturing Era
1.10 Operating Environment of New Manufacturing Era
1.11 Generic Manufacturing Strategies for New Manufacturing Era
1.12 Strategic Planning Methodology for World Class Manufacturing
1.13 Implementing the World Class Manufacturing Plan
Chapter 1: Manufacturing and World Class Manufacturing
12

Meaning of Manufacturing
• Production means creation of goods or services
to satisfy human wants or needs.
• The operations function involves the conversion
of inputs into value added outputs.
• “Manufacturing” is used to mean creation of
tangible goods but “Production” is used to mean
creation of goods and services.
• Value-added is the difference between the cost
of inputs and the value or price of outputs
13

Introduction
• Manufacturing has evolved considerably since the
advent of industrial revolution.
• In current global and competitive age, it is very
important for organization to have manufacturing
practice which is lean, efficient, cost-effective and
flexible.
• World class manufacturing is a collection of
concepts, which set standard for production and
manufacturing for another organization to follow.
14

Introduction
• WCM was created by Fiat and collaborating firms
in 2005
• Japanese manufacturing is credited with pioneer
in concept of world-class manufacturing.
• Initially Fiat's WCM Model was launched in Fiat
automobile companies only and in fact today
companies as varied as Unilever, IVECO, CNH,
Ariston, Embraco, Royal Mail, Whirlpool and many
different companies have adopted WCM concept.
• World class manufacturing was introduced in the
automobile, electronic and steel industry.
15

1.2 Traditional Batch Production
• American Production and Inventory Control
Society (APICS) defines Batch Production as a
form of manufacturing in which the job pass
through the functional departments in lots or
batches and each lot may have a different
routing.
• It is characterized by the manufacture of limited
number of products produced at regular intervals
and stocked awaiting sales.
16

Features of Batch Production
• 1. Shorter production runs.
• 2. Plant and machinery are flexible.
• 3. Plant and machinery set up is used for the
production of item in a batch and change of set
up is required for processing the next batch.
• 4. Manufacturing lead-time and cost are lower
as compared to job order production.
17

Advantages of Batch Production
• 1. Better utilization of plant and machinery.
• 2. Promotes functional specialization.
• 3. Cost per unit is lower as compared to job
order production.
• 4. Lower investment in plant and machinery.
• 5. Flexibility to accommodate and process
number of products.
• 6. Job satisfaction exists for operators.
18

Disadvantages of Batch Production
• 1. Material handling is complex because of
irregular and longer flows.
• 2. Production planning and control is complex.
• 3. Work in process inventory is higher compared
to continuous production.
• 4. Higher set up costs due to frequent changes
in set up.
19

1.3 New Manufacturing Era
• World-class manufacturing typically involves the
integration of various software tools and technologies
to optimize the manufacturing process –
• Enterprise Resource Planning (ERP),
• Quality Management Systems (QMS),
• Computerized Maintenance Management Systems
(CMMS),
• Artificial Intelligence (AI),
• They can be used to analyze production data and
identify patterns, enabling manufacturers to optimize
their operations and improve quality.
• It is critical for these systems to be tied into the work
being done on the factory floor, and the activities of
frontline teams.
20

A production System Model
 Inputs:
• Environment (PESTELI),
• Market: Facilities, Competition, Demand
• Primary Resources: Raw Material, Labour,
Capital, Utilities
 Conversion Sub System:
• Physical, Locational Services, Storage
Services
• Financial Services and Government Services
 Outputs: Goods or services
 Control Sub System : Monitors quality, cost
and quality and takes corrective actions.
 Feedback:
21

1.4 Business Challenges of New Manufacturing Era
1. Global Market Place
2. Production Strategy
3. TQM
4. Technology (E-Commerce)
5. Re-engineering
6. Supply Chain Management
7. Down sizing
8. CSR
9. Environmental issues
10. Workers Participation
11. Lean production
12. Shorter Product Life
13. Global Competition
23

Questions to be answered
• What sort of products will be produced?
• How will the firm use its resources to produce its
products?
• How can the firm improve its operations?
• What type of materials does the firm need?
• What type of skill do the employees need?
• What type of machinery is need?
• What should be the manufacturing process?
• Which technology should be used?
• What are the legal and other constraints?
• What is the Value Addition?
24

Principles of World class manufacturing
1. Implementing lean manufacturing and just-in-
time principles to reduce production waste and
cost.
2. Applying total quality management to decrease
the number of defects and improve customer
experience.
3. Executing total productive maintenance to help
catch operational failures that can lead to defective
machinery and equipment.
27

1.12 World class manufacturing strategies
• Build to order is a production strategy that waits for a
customer order to be placed before creating the goods to
fill it.
• Reducing assembly line lot sizes helps to reduce
inventory, simplify order scheduling, and boost overall
product quality.
• Just in time strategies help to eliminate the surplus of
goods to focus on developing products that meet
customer demand.
• Minimizing item flaws to retain customers and gain a
competitive edge in the global marketplace.
• Cross-training workers to ensure everyone is up-to-date
on current procedures and knows how to carry out their
jobs properly.
• Improving worker engagement to guarantee fewer
production errors and minimal waste.
30

S.N Topic
2.1 Introduction
2.2 WCM Basics
2.3 WCM Criteria
2.4 WCM Pillars
2.5 WCM Implementation
2.6 Quality in World Class Manufacturing
2.7 Facilitating Factors of WCM
2.8 Road to World Class Performance
2.9 World Class Delivery
2.10 World Class New Age Companies.
2.11 Attributes of Excellent Companies
2.12 Obstacle to World Class Manufacturing Implementation
Chapter 2: WCM Overview
33

2.1 Introduction
• The implementation of world class
manufacturing (WCM) practices have emerged
as an effective tool for the manufacturing
organizations in order to survive in the present
cut-throat competitive scenario.
• Application of these practices have resulted in
the process improvement, productivity
improvement, quality and cost reduction.
• World class manufacturing is a process driven
approach where various techniques and
philosophy are used in one combination or other.
34

2.2 Basics of World class manufacturing
• World class manufacturing is the philosophy of being
the best, the fastest, and the lowest cost producer of a
product or service
• WCM is a set of guiding principles for successfully
operating and managing a manufacturing company.
• It revolves around the continuous improvement of
production processes and systems to achieve
excellence in efficiency, quality, and customer
satisfaction.
• World class manufacturing is a philosophy that helps
organizations remain an industry leader and provide
the best choice for customers.
35

World class manufacturing
• The implementation of world-class manufacturing
(WCM) practices in an organization leads to the
better competitive advantage over the other
organizations.
• It basically includes the various tool, techniques
and methodologies such as total quality
management, total productive maintenance, just-
intime manufacturing, supply chain management
and sixsigma etc.
• The implementation of these WCM practices is not
an easy task due to presence of some hurdles.
36

World class manufacturing
• WCM focuses on eliminating waste and reducing
costs by optimizing production processes and
minimizing defects and errors.
• It also emphasizes the importance of employee
involvement and empowerment, promoting a
culture of continuous improvement and innovation.
• Producing waste free, efficient, and reasonably
priced products should be at the top of your list
37

World class manufacturing (WCM)
• World class manufacturing (WCM) is a
management ideology for producing the greatest
and most cost-effective products or services in a
timely manner.
• In today's ever-changing market, industry
leaders must do more than just develop high-
quality products.
38

2.3 Principles of World Class Manufacturing
• There are three main principles, which drive world-
class manufacturing.
• Implementation of just in time and lean
management leads to reduction in wastage
thereby reduction in cost.
• Implementation of total quality management leads
to reduction of defects and encourages zero
tolerance towards defects.
• Implementation of total preventive maintenance
leads to any stoppage of production through
mechanical failure
39

2.3 World class manufacturing metrics
• Overall equipment effectiveness to evaluate how
efficiently operations are followed
• Overall labor effectiveness to measure the
performance and quality of your workforce and its
productivity
• Scrap rate to assess production quality and output
• First-time right to ensure workers are producing goods
correctly to avoid time and money losses
• On-time orders to see how many products were
delivered to customers in a timely manner
• Customer complaints to study product fulfillment
40

2.4 The Technical pillars of World Class Manufacturing
1. Safety
2. Cost Deployment
3. Focused improvement
4. Autonomous maintenance and workplace
organization
5. Professional Maintenance
6. Quality control
7. Logistics & Customer service
8. Early equipment management
9. People development
10.Environment
41

World class manufacturing Pilars
1. Safety: Providing a safe working environment for all
employees is a key pillar of WCM.
• This involves establishing and enforcing safety policies
and procedures, as well as providing training and
resources to ensure employee safety.
2. Cost Deployment: Cost deployment is a systematic
approach to identifying and reducing costs throughout
the production process.
• This involves analyzing and understanding the cost
structure of the organization, setting cost reduction
targets, and implementing strategies to achieve those
targets.
43

3. Continuous Improvement: WCM is based on the
philosophy of continuous improvement, where every
aspect of the production process is continuously
evaluated and improved.
This includes not only processes, but also the tools,
equipment, and technology used in the production
process.
4. Autonomous Maintenance: Autonomous maintenance
involves empowering employees to take ownership of the
maintenance of equipment and machinery, which helps
to minimize downtime and reduce the cost of
maintenance.
44

5. Professional Maintenance: Maintenance is a
critical aspect of WCM, and it involves ensuring that
all equipment is operating at optimal levels to
minimize downtime and reduce costs.
6. Quality Control: Delivering high-quality products
and services is critical to achieving customer
satisfaction and maintaining a competitive edge.
This pillar involves establishing quality standards,
implementing quality control measures, and
continuously improving quality through feedback and
data analysis.
45

7. Logistics and Material Flow: Efficient logistics
and material flow are critical to achieving high
levels of productivity and minimizing waste in the
production process.
8. Early Equipment Management: Early Equipment
Management (EEM) involves optimizing the
performance of equipment from the design phase
to reduce downtime and improve efficiency.
46

9. People Development: Developing skills and
empowering employees is a critical pillar of WCM.
This involves providing training and development
opportunities, promoting a culture of continuous
improvement, and empowering employees to identify
and solve problems.
10. Environment: WCM recognizes the importance of
environmental sustainability and encourages
organizations to implement environmentally
responsible practices in their production processes.
47

The Managerial pillars of World Class Manufacturing
• Management Commitment
• Clarity of Objectives
• Route map to WCM
• Allocation of Highly Qualified People to Model
Areas
• Commitment of the Organization
• Competence of Organization towards
Improvement
• Time and Budget
• Level of Detail
• Level of Expansion
• Motivation of Operators
48

2.5 List of techniques
• Make to order
• Streamlined Flow
• Smaller lot sizes
• Collection of parts
• Doing it right first time
• Cellular or group manufacturing
• Total preventive maintenance
• Quick replacement
• Zero Defects
• Just in Time
• Increased consistency
• Higher employee involvement
• Cross Functional Teams
• Multi-Skilled employees
• Visual Signaling
• Statistical process control
49

2.7 Facilitating Factors of WCM
1. Minimise the Cost
2. maximise the revenue and Profit
3. Improve Customer Service
4. Compare the various locations and chose the
best.
5. Competitive advantage.
6. Long term commitment
50

2.8 Road to World Class Performance
• World Class Manufacturers focus on operational
efficiency, reducing wastage and creating cost
efficient organization.
• This leads to creation of high-productivity
organization, which used concurrent production
techniques rather than sequential production
method.
• World class manufacturers tend to implement best
practices and also invent new practices as to stay
above the rest in the manufacturing sector.
• The main parameters which determine world-class
manufacturers are quality, cost effective, flexibility
and innovation.
51

2.8 How to become a world class manufacturer
• Develop products as solutions rather than creating
ones that don’t serve the needs of the customer.
• Exceed customer satisfaction by handling every
client inquiry with care, from the prospect stage to
post-sales.
• Execute production procedures that increase item
quality and reduce malfunctions on the shop floor.
• Modify manufacturing processes to meet customer
expectations and avoid stagnation.
52

How to become a world class manufacturer
• Emphasize employee training to increase product
knowledge, procedures, and productivity.
• Carry out supply chain management tactics that
analyze the actual cost of a purchased product
from a supplier to lessen unneeded expenses or
errors.
• Participate in the product process (design,
planning, and development) to ensure production
protocols are followed and maintained.
53

5 steps
• Reduction of set up time and in tuning of
machinery: It is important that organizations are
able to cut back time in setting up machinery and
also tune machinery before production.
• Cellular Manufacturing: It is important that
production processes are divided into according to
its nature, with similar nature combined together.
• Reduce WIP material: It is normal tendency of
manufacturing organization to maintain high levels
of WIP material. Increased WIP leads to more cost
and decreased WIP induces more focus on
production and fast movement of goods.
54

5 steps
• Postpone product mutation: For to achieve a
higher degree of customization many changes are
made to final product. However, it is important that
mutation conceived for the design stage
implement only after final operation.
• Removal the trivial many and focus on vital few: It
is important for organization to focus on production
of products which are lined with forecast demand
as to match customer expectation.
55

World class manufacturing practices
• Kaizen:
• Lean Manufacturing:
• Total Quality Management (TQM):
• Just in Time (JIT):
• 5S:
• Total Productive Maintenance
• Six-Sigma:
56

Characteristics of WCM
• Make losses visible.
• Improving in team format.
• Organizing process-oriented.
• Standardize working methods.
57

BENEFITS OF WCM PRACTICES
• Improvement in quality
• Improvement in productivity
• Better communication
• Reduced cost
• Reduced paper work
• Increased employee participation
• Better innovations
• Reduced waste
58

2.12 Obstacle to World Class Manufacturing
Implementation
• Lack of top management support
• Poor planning
• Cultural Resistance
• Lack of knowledge
• Lack of communication
• Lack of motivation
• Lack of education and training
59

S.N Topic
3.1 Introduction
3.2 Quality Management
3.3 Competitiveness
3.4 Quality and Global Competitiveness
3.5 Global Quality Improvement Methods
3.6 Global Economic Integration
Chapter 3 Quality and Global Competitiveness
61

3.1 Introduction
• Quality is often defined by perceptional factors
like courtesy, friendliness of staff, promptness in
resolving complaints, atmosphere, waiting time,
consistency.
• Cost is long forgotten but the quality remains for
long.
• Manufacturing quality focuses on tangible
product features
– Conformance, performance, reliability,
features, durability, serviceability
• Service organizations produce intangible
products that must be experienced
62

3.1 Introduction
Efficiency means
• increasing the quality
• increasing the quantity and
• Reducing the cost of production.
63

3.1 Meaning of Quality
• Conformance to specifications
– Does product/service meet targets and
tolerances defined by designers?
• Fitness for use
– Evaluates performance for intended use
• Value for price paid
– Evaluation of usefulness vs. price paid
• Support services
– Quality of support after sale
• Psychological
– e.g. Ambiance, prestige, friendly staff
64

3.2 Meaning of Quality Management
• BusinessDictionary.com has defined quality as “a
measure of excellence or state of being free from
defects, deficiencies, and significant variations.”
• The International Standards Organization (ISO) has
defined quality as “the totality of features and
characteristics of a product or service that bears its
ability to satisfy stated or implied needs.”
• In manufacturing, quality means “strict and
consistent adherence to measurable and verifiable
standards to achieve uniformity of output that
satisfies specific customer or user requirements.”
65

Meaning of Quality Management
• Quality management means what the
organization does to ensure that its products or
services satisfy the customer's quality
requirements and comply with any regulations
applicable to those products or services.
• Quality management also means what the
organization does to enhance customer
satisfaction and achieve continual
improvement of its performance
66

3.3 Competitiveness
• Price is less than that of competitor
• Benefit of the product is more than that of competitor
• Perceived Quality is more than that of competitor
• The product has esteem value (Brand Image)
• The product has better resale value than that of
competitor
• Maintenance cost is less than that of competitor
• User friendliness.
• Risk free usage of the product
• Environmental Friendly
67

3.4 Quality and Global Competitiveness
69

Four Dimensions of Quality
1. Quality of design : Determining which features
to include in the final design
2. Quality of conformance to design: Production
processes are set up to meet design
specifications
3. Ease of use: Instructions, operation,
maintenance, safety
4. Post-sale service : Responsiveness, rapid
repair, preventive maintenance, spare parts
70

Cost of Quality – 4 Categories
• Early detection/prevention is less costly
– May be less by a factor of 10
71

PDSA Details
 Plan
Evaluate current process
Collect procedures, data, identify problems
Develop an improvement plan, performance
objectives
 Do
Implement the plan – trial basis
 Study
Collect data and evaluate against objectives
 Act
Communicate the results from trial
If successful, implement new process
72

Quality Control
• The process of making sure that the stakeholders are
adhered to the defined standards and procedures is
called quality control.
• In quality control, a verification process takes place.
Certain activities and products are verified against a
defined set of rules or standards.
• Every organization that practices QC needs to have a
Quality Manual.
• The quality manual outlines the quality focus and the
objectives in the organization.
• The quality manual gives the quality guidance to different
departments and functions.
73

Quality Assurance
• Quality Assurance is a broad practice used for
assuring the quality of products or services.
• There are many differences between quality
control and quality assurance.
• In quality assurance, a constant effort is made to
enhance the quality practices in the
organization.
• Therefore, continuous improvements are
expected in quality functions in the company. For
this, there is a dedicated quality assurance team
commissioned.
74

Quality Plan
• If the processes and activities that produce the
deliverables do not adhere to their own quality standards
(process quality standards), then there is a high
probability that deliverables not meeting the delivery
quality standards.
• To address all the quality requirements, standards and
quality assurance mechanisms in a project, a document
called 'project quality plan' is developed by the project
team.
• This plan acts as the quality bible for the project and all
the stakeholders of the project should adhere to the
project quality plan.
75

• Customer Focus
• Leadership
• Involvement of People
• Process Approach
• System Approach to Management
• Continuous Improvement
• Factual Approach to Decision Making
• Mutually beneficial supplier relationship
76

• Kaizen:
• Lean Manufacturing:
• Total Quality Management (TQM):
• Just in Time (JIT):
• 5S:
• Total Productive Maintenance (TPM)
• Six-Sigma:
• ISO Certification
• Quality Circles
77

• Globalisation of the economy means reduction of import
duties, removal of Non-Tariff Barriers on trade such as
Exchange control, import licensing etc., allowing FDI and FPI,
allowing companies to raise capital abroad and grow beyond
national boundaries and encourage exports
• The IMF defines globalizations as “the growing economic
interdependence of countries worldwide through increasing
volume and variety of cross border transactions in goods and
services and of international capital flows, and also through
the more rapid and widespread diffusion of technology.”
• Globalization is an intensified process of internationalizing a
business.
Prof.Shantilal Hajeri 78

• The process of Globalisation has brought about an open
economy and tariff levels have come down to a larger
extent.
• Foreign Investment has witnessed surge in volume.
• Globalization is the shift towards a more integrated and
interdependent world economy.
• Globalization implies integration of the economy of the
country with the rest of the world economy and opening
up of the economy for foreign direct investment by
liberalizing the rules and regulation and by creating
favorable socio-economic and political climate for global
business

Globalisation
• Globalization means the intensification of cross-country
political, cultural, social, economic, and technological
interactions that result in the formation of transnational
business organization.
• Globalisation means Opening the borders of India both
for exports and imports.
• Export of one country is the import of another country.
Unless a country imports the exports of another country
cannot increase.
• Hence the policy should be Export Promotion through
import Promotion.

Advantages of Globalisation
• Adoption of new & flexible production methods.
• Reconstruction of production & Trade patterns.
• Rise in inflow of Foreign capital.
• Qualitative improvement in the country.
• Rise in the generation of skilled employment.
• Rise in Banking and Foreign sector efficiency.
• Increase in the technology.
• Rise in the Standard of Living due to imported goods at
affordable price.
• Emergence of Global organisations like WTO

Disadvantages of Globalisation
• Loss to domestic industries
• Exploitation of Human resource
• Decline in income
• Increase in Unemployment of unskilled labour
• Transfer of natural resources
• Widening gap between rich and poor
• Dominance of foreign institutions

S.N Topic
4.1 Introduction
4.2 Kaizen
4.3 Getting Started with Kaizen
4.4 Implementing Continuous Improvement
4.5 7QC Tools
4.6 Six Sigma
4.7 Lean Six Sigma
Chapter 4: Continuous Improvement
83

4.1 Introduction
• Motorola and GE attribute their success to
having one of the best quality management
programs in the world.
• Six-Sigma was implemented
– Levels of defects is reduced to 3.4 parts per
million
– Everyone is trained in quality improvement
principles and techniques
– Black-Belt – their full time job is to identify and
solve quality problems
84

4.1 Kaizen
• Kaizen means Continuous(Kai) Improvement
(Zen)
• 3 Elements of Demand:
• 3 ‘G’ Principles:
• 3Ms:
• 3 Principles of Lean:
• 5S :
• 5Ms of Production;
• 7 Tools of QC:
• 7 Wastes of Production :
85

3 Elements of Demand
• The three drivers of customer satisfaction are: Quality, Cost
and Delivery
1. Quality,
• Value for money
• Fitness for the purpose
• Safety in use
2. Cost
• Total Price
• Carrying Cost
• Ordering Cost
3. Delivery
• Time of Delivery
• Place of Delivery
• Mode of Delivery
• Cost of Delivery (Transportation)
86

3 ‘G’ Principles
1. Gemba - shop floor
2. Gembutsu - the actual product
3. Genjitsu - the facts.
The key to successful kaizen is to go to the
shop floor, work with the actual product and get
the facts (reality).
First hand information.
87

3Ms
1. Muda – Waste
• Reduce,
• Reuse,
• Recycle
2. Mura - Irregular actions
• Absence of Standard Operating Procedure
• Not aware of Standard Operating Procedure
• Not implementing Standard Operating Procedure
• Lack of supervision or inspection
3. Muri – Strain
• Overuse of machinery
Overworking by workers
88

3 Principles of Lean
• 3 Principles of Lean:
1. Take time,
2. One piece flow production,
3. Downstream pull system from the customer
89

5Ms of Production
1. Man:
Right man for the right job at right salary with right training and
experience through right recruitment under right working
conditions.
2. Machine;
Right machinery with right technology with right staff to operate it.
3. Material:
Right Raw Material at Right price from the Right Vendor at the
Right time.
4. Method:
Right Method of work with Right manufacturing process.
5. Measure.
Right Size Right Length Right Breadth Right height Right weight
90

7 Wastes of Production
• The 7 wastes are
1. Overproduction,
2. Transportation,
3. Motion,
4. Waiting,
5. Processing,
6. Inventory and
7. Defects
91

4.5 Seven QC Tools
• Cause-and-Effect Diagrams
• Flowcharts
• Checklists
• Control Charts
• Scatter Diagrams
• Pareto Analysis
• Histograms
92

7 Tools of QC
1. Flow Chart
2. Histogram
3. Cause and Effect Diagram
4. Check Sheet
5. Scatter Diagram
6. Control Charts
7. Pareto Charts
93

4.6 Six Sigma
• In 1980, NBC aired “If Japan can…Why can’t
we?” and the Quality movement took off in the
U.S.
• In 1991, IBM offered $1 million ($3 million in IBM
equipment) to those colleges and universities
that could adapt quality management initiatives
• In 1992 all went TQM “crazy”
94

What is Six Sigma (6σ)?
• Sigma (σ) is a statistical concept that represents how much variation
there is in a process relative to customer specifications.
• Sigma Value is based on “defects per million opportunities” (DPMO).
• Six Sigma (6σ) is equivalent to 3.4 DPMO. The variation in the
process is so small that the resulting products and services are
99.99966% defect free.
Amount of Variation Effect Sigma Value
Too much Hard to produce output within
customer specifications
Low (0 – 2)
Moderate Most output meets customer
specifications
Middle (3 – 5)
Very little Virtually all output meets
customer specifications
High (6)
95

Six Sigma Concept
Parking Your Car in the Garage
Has Variability...
Target
defects
defects
Customer
Specification
Customer
Specification
96

Why Use Sigma as a Metric?
 Focuses on defects. Even one defect reflects a
failure in your customer’s eye
 Establishes a common metric to make
comparisons easier
 Is a more sensitive indicator than percentage or
average-based metrics …
97

Where Did 6σ Come From?
• Started at Motorola Corporation in the mid-1980’s,
when the company discovered that products with a
high first-pass yield (i.e., those that made it through the
production process defect-free) rarely failed in actual
use, resulting in higher customer satisfaction.
• Popularized by former General Electric CEO Jack
Welch’s commitment to achieving Six Sigma capability
(realized $12 Billion savings over 5 years). "Six Sigma
is a quality program that improves your customers'
experience, lowers your costs and builds better
leaders."
98

Isn’t 6σ Just For Manufacturing?
• No, Six Sigma is good for ANY business.
– Has been successful in industries such as
banking, retail, software, and medical
– Has been successful in improving processes
throughout operations, sales, marketing,
information technology, finance, customer
services, and human resources
• Why?
– Because every business suffers from the two key
problems that Six Sigma can solve: defects and
delay
99

Six Sigma (6σ) Methodologies
Define
Measure
Analyze
Improve
Control
DMAIC: This method is used to improve the
current capabilities of an existing process.
This is by far the most commonly used
methodology of sigma improvement teams.
Define
Measure
Analyze
Design
Verify
DMADV: This method is used when you need to
create or completely redesign a process, product,
or service to meet customer requirements.
DMADV teams are usually staffed by senior
managers and Six Sigma experts.
100

DMAIC Methodology
DEFINE Identify, prioritize, and
select the right project(s)
MEASURE Identify key product
characteristics & process
parameters, understand
processes, and measure
performance
ANALYZE Identify the key (causative)
process determinants
IMPROVE Establish prediction model
and optimize performance
CONTROL Hold the gains
101

To Recapitulate Six Sigma
• Define – Choose a significant process
• Measure – Track the output of that process
• Analyze – Determine the causes of variability
within the process
• Improve – Minimize the variability
• Control – Stabilize the process
Remember: Minimize variability, increase quality. Increase quantity, decrease costs!
102

S.N Topic
5.1 Introduction to Lean Manufacturing
5.2 Laying out a Lean Production Facility
5.3 Setup reduction
5.4 Controlling a Lean Production Facility
5.5 The Five Steps of Lean Implementation
5.6 Case Study FORD
Chapter 5: Elements of Lean Production
103

5.1 Introduction to Lean Manufacturing
• The methodology of increasing the speed of
production by eliminating process steps which do
not add value
– those which delay the product or service
– those which deal with the waste and rework of
defects along the way
104

The Birth of “Lean Six Sigma”
• Six Sigma improves effectiveness by eliminating
defects (improves Quality)
• Doing a right thing
• Lean improves efficiency by eliminating delay and
waste (improves Speed)
• Doing a thing rightly
• Most Six Sigma efforts are incorporating the
principles of Lean. Therefore, Six Sigma is often
called Lean Six Sigma.
• Doing a right thing rightly.
105

Where Did Lean Come From?
• Lean thinking originated at Toyota with the Toyota
Production System (TPS).
• The original ideas were formulated by Sakichi
Toyoda in the 1920s and 1930s, but only made the
leap to full implementation in the 1950s.
• Many of the principles of lean came from a
surprising source: American supermarkets where
small quantities of a vast selection of inventory is
replenished as customers "pull" them off the shelf.
106

5.5 The Five Steps of Lean Implementation
• Determine and create value
– What does the customer want?
• Use “pull” instead of “push” systems to avoid
overproduction
– Inventories hide problems and efficiencies.
• One piece flow
– Make the work “flow,” so that there are no
interruptions and no wasted time or material
• Eliminate the seven speed bumps (non-value
adds) caused by waste
• Use the “five whys?” and Six Sigma problem
solving to eliminate defects
107

Synergy of Lean and Six Sigma
# of
Steps
±3s ±4s ±5s ±6s
1 93.32% 99.379% 99.976% 99.999%
7 61.63% 95.733% 98.839% 99.997%
10 50.08% 93.96% 99.768% 99.996%
20 25.08% 88.29% 99.536% 99.993%
40 6.29% 77.94% 99.074% 99.986%
Lean
reduces
non-value-add
steps
Six Sigma improves quality of value-add steps
Source: Motorola Six Sigma Institute 108

S.N Topic
6.1 Introduction
6.2 JIT As an Environment
6.3 JIT As A Control Technique
6.4 Major Tools and Techniques of JIT
6.5 Benefits of JIT
6.6 Toyota Production System
Chapter 6: Just in Time (JIT)
109

6.1 Just In Time (JIT)
• The Just-in-time production concept was first
implemented in Japan around 1970’s to
eliminate waste of Materials, Capital, Manpower
and Inventory throughout the manufacturing
system.
• Every point in the organization where buffer
stocks normally occur is identified.
• Then, critical examinations of reasons for such
stocks are made.
• Then the steps are taken to reduce the stock
without affecting the production and delivery
schedule
110

Causes for over-stocking
• Unreliable/unpredictable deliveries
• Poor qualities from supplier
• Increased variety of materials
• Machine break down
• Labour absentism
• Frequent machine setting
• Variations in operators capabilities
• Schedule charges
• Changing product priorities
• Product modification
111

6.2 JIT As an Environment
• The rate at which the products come out at the end of
final assembly matches with the order quantity for that
product.
• There are no stockpiles within the production process.
• It is also called zero inventory, stockless production,
demand scheduling.
• Parts are inspected by the workers as they are
manufactured.
• Workers can maintain continuous production control
immediately identifying defective parts and reducing
process variation.
• This JIT system ensures quality products.
• Extra work involved in stockpiling parts is eliminated.
112

6.3 JIT As A Control Technique
The JIT concept has the following objectives:
• Receive supplies just in time to be used.
• Produce parts just in time to be made into
subassembly.
• Produce subassemblies just in time to be
assembled into finished products.
• Produce and deliver finished products just in
time to be sold.
113

S.N Topic
7.1 Introduction
7.2 Defining Bench marking
7.3 Levels of Bench marking
7.4 Bench marking History
7.5 Understanding the Tool
7.6 Bench marking Types
7.7 Approaches to Bench marking
7.8 Bench marking Process Steps
7.9 Classification of Bench marking
7.10 Advantages & Disadvantages
Chapter 7: Bench Marking
114

7.1 Introduction
• It is a human tendency to look at a role model
to follow him and to become him.
• The same concept is now extended to the
products and processes.
115

7.2 Bench marking
• Bench marking is a process of identifying
the best in the category and trying to study
and reach that level.
• It is the comparison of our products and
processes with the best and identifying the
areas of improvements.
116

6.5 Advantages of JIT
1. Exact delivery schedule is possible with JIT practices.
2. Quality of product is improved.
3. Lower defect rates i.e. lower inspection cost.
4. Lower raw material inventory, in process inventory and
finished product inventory resulting lower product cost.
5. Satisfying market demand without delay in delivery.
6. Flexibility in utilizing manpower as workers is trained to do
many jobs.
7. JIT helps in effective communication and reduce waste.
8. Less shop floor space is required.
9. Employee morale is high in an efficient working
environment.
10. JIT reduces scrap and need for rework.
117

4.13 ISO Certification
• ISO is an independent, non-governmental organization
made up of members from the national standards
bodies of 162 countries.
• ISO 9001 and ISO 14001 are among ISO's most well
known standards ever.
• They are implemented by more than a million
organizations in some 175 countries.
• ISO 9001 helps organizations to implement quality
management.
• ISO 14001 helps organizations to implement
environmental management.
• ISO 9001 and ISO 14001 are generic standards
118

4.8 Total Quality Management
• Total Quality Management takes everything
related to quality into consideration, including
the company processes, process outcomes
(usually products or services) and employees.
119

Total Quality Management
• The origin of the TQM goes back to the time of the First
World War.
• During the World War I, there have been a number of
quality assurance initiatives taken place due to the large-
scale manufacturing required for war efforts.
• The military fronts could not afford poor quality products
and suffered heavy losses due to the poor quality.
• Therefore, different stakeholders of the war initiated
efforts to enhance the manufacturing quality.
• First of all, quality inspectors were introduced to the
assembly lines in order to inspect the quality.
• Products below certain quality standard were sent back
for fixing.
120

The Evolution of TQM
• Early 20th century – Quality meant inspection.
Reactive in nature
• 1980s – Quality began to have strategic
meaning. Proactive in nature
• Successful companies understand that quality
provides a competitive advantage
• Put customer first, and define quality as meeting
or exceeding customers expectation
• Quality excellence has become a standard for
doing business
121

TQM Philosophy – What’s Different?
 TQM attempts to embed quality in every aspect of the
organization
 Focus on Customer
 Identify and meet customer needs
 Stay tuned to changing needs, e.g. fashion styles
 Continuous Improvement
 Continuous learning and problem solving, e.g. Kaizen,
6 sigma
 Quality at the Source
 Inspection vs. prevention & problem solving
 Employee Empowerment
 Empower all employees; external and internal
customers
 Team approach, quality circle
122

TQM Philosophy– What’s Different?
 Understanding Quality Tools
Ongoing training on analysis, assessment,
and correction, & implementation of quality
tools
 Team Approach
Teams formed around processes – 8 to 10
people
Meet weekly to analyze and solve problems
 Benchmarking
Studying practices at “best in class”
companies
 Managing Supplier Quality
Certifying suppliers vs. receiving inspection
123

4.10 Quality Circle
• “Quality is about meeting the needs and
expectations of customers”
• Key aspects of quality for the customer include:
• Good design – looks and style
• Good functionality – it does the job well
• Reliable – acceptable level of breakdowns/
failure
• Consistency in performance
• Durable – lasts as long as it should
• Good after sales service
• Value for money
124

Quality Circle
• All members in Quality Circle enjoy equal rights
• Leader is just to merely maintain orderly
proceedings
• No interruptions while other member is speaking
• No counter or criticism
125

Genesis
• Defeat of Japan in 2nd World war
• Socio- Economics reconstruction
• Severe Constraints of high population density,
Lack of natural resources, compulsorily dependent
on import of fuel, food, energy and raw materials
required for industries.
• Solution was only to ‘Export’
• For Export, you need superior quality
• Superior Quality comes through high technological
investment
• Superior Quality also comes through small but
continuous ways of improved working
126

What is QC?
• QC is a form of participative management
• QC is Human Resource Development
technique
• QC is a forum of 10-12 self motivated
employees willing to contribute for the growth
of the organisation
• QC is Problem solving technique
• People support what they create.
• Workers try to implement the suggestions
made by themselves.
127

Scope of QC
• QCs are applicable, where there is scope for
group based solutions of work related problems
• Scope of QCs is not limited to Industry or
manufacturing firms only but are relevant for any
other organizations, schools, hospitals,
Universities, Banks, Research Institutes, Govt.
Office, Homes etc..
• Not limited to the narrow definition of Quality
Check but is concerned with Total Customer
Satisfaction
128

Definition
 Quality Circle is a small group of 6 to 12
employees doing similar work who voluntarily
meet together on a regular basis to identify
improvements in their respective work areas using
various techniques for analyzing and solving work
related problems coming in the way of achieving
and sustaining excellence leading to mutual
upliftment of employees as well as the
organization.
 It is a way of capturing the creative and innovative
power that lies within the work force
129

Definition
• Voluntary groups of employees who work on
similar tasks or share an area of responsibility
• They agree to meet on a regular basis to discuss &
solve problems related to work.
• They operate on the principle that employee
participation in decision-making and problem-
solving improves the quality of work
130

Basic Assumptions
• Employees want to do good job.
• Employees want to be recognized as intelligent
and interested and like to participate in problem
solving.
• Employees want to be better informed about
organizational goals and problems.
• Employees want recognition, responsibility and a
feeling of self esteem
 Human Beings are basically human beings where
ever they are.
131

Objectives achieved by QC
 a) Change in Attitude: From "I don’t care" to "I do
care" Continuous improvement in quality of work
life through humanization of work.
 b) Self Development: Bring out ‘Hidden Potential’
of people (People get to learn additional skills)
 c) Development of Team Spirit: Eliminate inter
departmental conflicts.
 d) Improved Organizational Culture: Positive
working environment. Total involvement of people
at all levels.
 e) Higher motivational level.
132

Basic Characteristics of QC
• Volunteers set rules & priorities
• Decision are made by consensus
• Use of organized approaches to problem
solving.
• Members of QC need to be trained
• Members need to be empowered
• Members need to have the support of Senior
Management.
133

Advantages of QC
• Boosts organizational morale
• Inspires effective team work
• Promotes involvement to address issues
• Creates problem solving capability
• Promotes personal & leadership development
• Improves communication gap within the organization
• Brings cost reduction
• Better motivation among employees
• Changes from negative environment to the positive
one
134

Basic steps in QC
• Problem Identification
• Problem Solution
• Data collection & analysis
• Generate Alternative Solution
• Select the Best solution
• Prepare Plan of Action
• Present Solution to Management
• Implement & Monitor
135

Organizational hierarchy of QC
• Top Management
• Steering Committee
• Facilitator
• Leader
• Members
• Recorder
136

Ishikawa Diagram
• ISHIKAWA DIAGRAM Referred to as cause-and
effective diagram, tree diagram, or fishbone
diagram
• Display factors, which affect a particular quality
characteristic, outcome or problem. Typically
result of a brainstorming
• The main goal represented by the trunk of the
diagram, and primary factor represented as
branches.
137

ISHIKAWA Diagram –Low Data Usage
138

4.11 5S
• 5S is the principle of waste elimination through
workplace organisation.
• It is derived from the Japanese words:
1. Seiri – sort,
2. Seiton – straighten,
3. Seiso – sweep (Shine),
4. Seiketsu – standardize,
5. Shitsuke – sustain
139

5S
5S is a workplace organization methodology that
uses a list of five Japanese words which are seiri,
seiton, seiso, seiketsu an d shitsuke
• USEKEEPING TECHNIQUE
• PRODUCTIVITY AND SAFETY ENHANCEMENT
TECHNIQUE
IN ORDER TO ACHIEVE HIGH LEVELS OF
QUALITY, SAFETY, AND PRODUCTIVITY,
WORKERS MUST HAVE A CONDUCIVE WORKING
ENVIRONMENT
141

WHAT IS 5S?
• Developed by the Japanese
• Housekeeping System
• Helps Create a Better Working Environment and
a Consistently High Quality Process
142

DISCOVERY OF 5S
• Thirty years ago researchers started studying the
secret of success of Japanese manufacturing
companies
• 5S turned out to be the most impressive "secret"
• The factories were so well organized that abnormal
situations were readily apparent
• Equipments were so clean and well maintained that
any problem such as a loose bolt or leaking oil could
be easily seen
• This passion of cleanliness and orderliness became
a hallmark of Japanese organizations
143

OBJECTIVES OF 5S
• Productivity
• Safety
• Reduced Waste
• Worker Commitment
144

THE 5S PRINCIPLES
1. SEIRI – Organisation/Sort out
2. SEITON – Orderliness/Systemize/Straighten
3. SEISO – The Cleaning/Shining/Sweeping
4. SEIKETSU – STANDARDIZE
5. SHITSUKE - Sustain/Discipline
145

1. ORGANISATION(SEIRI)
• Decide what you need
• Remove unnecessary clutter
• All tools, gauges, materials, classified and then
stored
• Remove items which are broken, unusable or
only occasionally used
146

RED TAG TECHNIQUE
• GIVE STAFF RED LABELS
• ASK STAFF TO GO THROUGH EVERY ITEM
IN THE WORK PLACE
• ASK IF NEEDED & THOSE THAT ARE
NEEDED,IN WHAT QUANTITY
• NOT NEEDED RED TAG IT
• STORE IN THE RED TAG AREA RED
TAG
147

For wavering items
• PLACE THE SUSPECTED ITEMS IN THE RED
TAG AREA FOR ONE WEEK
• ALLOW THE STAFF TO REEVALUATE THE
NEEDED ITEMS
• AT THE END OF WEEK THOSE WHO NEED
ITEMS SHOULD BE RETURNED
RED
TAG
148

ORGANISATION
PRIORITY FREQUENCY OF USE HOW TO USE
Low Less than once per
year
Once per year
Throw away
Store away
from the
workplace
Avg. Once per month
Once per week
Store together
but offline
High Once Per Day Locate at the
workplace
149

Sorting (Seiri)
• Eliminate all unnecessary tools, parts, and
instructions.
• Keep only essential items and eliminate what is
not required
• Prioritizing things per requirements and keeping
them in easily-accessible places.
• Everything else is stored or discarded.
• “Place for Every thing and Every Thing in its
place”
150

2. ORDERLINESS(SEITON)
• ONCE YOU HAVE ELIMINATED ALL THE UNNEEDED
ITEMS
• NOW TURN TO THE LEFT OVER ITEMS
Organise layout of tools and equipment
– Designated locations
– Use tapes and labels
– Ensure everything is available as it is needed and at the
“point of use”
Workplace Checkpoints:-
• Positions of aisles and storage places clearly marked?
• Tools classified and stored by frequency of use?
• Pallets stacked correctly?
• Safety equipment easily accessible?
• Floors in good condition?
152

Straightening or setting in order / stabilize (Seiton)
• There should be a place for everything and
everything should be in its place.
• The place for each item should be clearly
labelled or demarcated.
• Items should be arranged in a manner that
promotes efficient work flow, with equipment
used most often being the most easily
accessible.
153

3. SEISO (CLEAN/SHINE)
• Create a spotless workplace
• Identify and eliminate causes of dirt and grime –
remove the need to clean
• Sweep, dust, polish and paint
• Divide areas into zones
• Define responsibilities for cleaning
• Tools and equipment must be owned by an
individual
• Focus on removing the need to clean
155

Shining or systematic cleaning (Seiso)
• Clean the workspace and all equipment, and
keep it clean, tidy and organized.
• At the end of each shift, clean the work area and
be sure everything is restored to its place.
• Maintaining cleanliness should be part of the
daily work – not an occasional activity initiated
when things get too messy.
156

4. SEIKETSU (STANDARDISE)
• Generate a maintenance system for the first
three
• Develop procedures, schedules, practices
• Continue to assess the use and disposal of
items
• Regularly audit using checklists and measures
of housekeeping
• Real challenge is to keep it clean
157

Standardizing (Seiketsu)
• All work stations for a particular job should be
identical.
• All employees doing the same job should be
able to work in any station with the same tools
that are in the same location in every station.
• Everyone should know exactly what his or her
responsibilities are for adhering to the first 3 S's.
158

5. SHITSUKE (SUSTAIN / DISCIPLINE)
• Means inoculate courtesy & good habits
• Driving force behind all 5S
• Deming’s point number 1: Constancy of purpose
• Make it a way of life
• Part of health and safety
• Involve the whole workforce*
• Develop and keep good habits
159

Sustaining the discipline or self-discipline (Shitsuke)
• Maintain and review standards.
• Maintain focus on this new way and do not allow
a gradual decline back to the old ways.
• While thinking about the new way, also be
thinking about yet better ways.
160

After implementation of 5 S
1. Neat & clean workplace
2. Smooth working
3. No obstruction
4. Safety increases
5. Productivity improves
6. Quality improves
7. Wastage decrease
8. Machine maintenance
9. Visual control system
10. Employees motivated
11. Workstations become spacious
161

ISO Certification
• ISO 9000 Standards:
• Certification developed by International
Organization for Standardization. Set of
internationally recognized quality standards.
Companies are periodically audited & certified
• ISO 9000:2000 QMS – Fundamentals and
Standards
• ISO 9001:2000 QMS – Requirements
• ISO 9004:2000 QMS - Guidelines for
Performance
• ISO 14000: Focuses on a company’s
environmental responsibility
162

ISO Standards
• ISO 9000 Standards:
– Certification developed by International Organization
for Standardization
– Set of internationally recognized quality standards
– Companies are periodically audited & certified
– ISO 9000:2000 QMS – Fundamentals and
Standards
– ISO 9001:2000 QMS – Requirements
– ISO 9004:2000 QMS - Guidelines for Performance
– More than 40,000 companies have been certified
• ISO 14000:
• Focuses on a company’s environmental
responsibility
163

Accreditation
• Accreditation is like certification of the certification
body.
• It means the formal approval by a specialized body -
an accreditation body - that a certification body is
competent to carry out ISO 9001:2008 or ISO
14001:2004 certification in specified business
sectors.
• Certificates issued by accredited certification bodies
- and known as accredited certificates - may be
perceived on the market as having increased
credibility.
• ISO does not carry out or approve accreditations.
164

Certification not a requirement
• Certification is not a requirement of ISO 9001
or ISO 14001.
• The organization can implement and benefit from
an ISO 9001 or ISO 14001 system without having
it certified.
• The organization can implement them for the
internal benefits without spending money on a
certification programme.
165

Certification is a business decision
• Certification is a decision to be taken for
business reasons:
• if it is a contractual, regulatory, or market
requirement
• If it meets customer preferences
• it is part of a risk management program
• if it will motivate staff by setting a clear goal
166

The ISO 9000 family
• ISO 9001 is the standard that gives the
requirements for a quality management
system.
• ISO 9001:2008 is the latest, improved version.
• It is the only standard in the ISO 9000 family
that can be used for certification.
• There are 16 other standards in the family that
can help an organization on specific aspects
such as performance improvement, auditing,
training…
167

The ISO 14000 family
• ISO 14001 is the standard that gives the
requirements for an environmental
management system.
• ISO 14001:2004 is the latest, improved version.
• It is the only standard in the ISO 14000 family
that can be used for certification.
• The ISO 14000 family includes 21 other
standards that can help an organization specific
aspects such as auditing, environmental labelling,
life cycle analysi
168

Benefits of ISO 9001 and ISO 14001
• International, expert consensus on state-of-the-art
practices for quality and environmental
management.
• Common language for dealing with customers and
suppliers worldwide in B2B.
• Increase efficiency and effectiveness.
• Model for continual improvement.
• Transfer of good practice to developing countries
• Tools for new economic players
• Regional integration
• Facilitate rise of services
169

5.1 Introduction
• The use of information technology (IT) is considered a
prerequisite for the effective control of today’s production
system. Examples are:
• Computer Aided Design (CAD)
• Computer Aided Manufacturing (CAM)
• Flexible Manufacturing System (FMS)
• Computer Integrated Manufacturing (CIM)
• Just In Time (JIT)
• Layout Design Procedure
• Procurement Software
• Logistics Information Systems
• Enterprise Resource Planning (ERP)
• Material Resource Planning (MRP)
170

Manufacturing Plan
• It facilitates scheduling of production resources and resolve
day-to-day capacity bottlenecks within the materials
management system.
• Primarily, bottlenecks may result from raw materials shortages
or daily capacity limitations.
• Manufacturing requirements determine the master production
schedule (MPS), manufacturing requirement plan and
consequently material requirement plan(MRP-I/II).
• MPS defines weekly or daily production and machine
schedules, whereas MRP coordinates the purchase and
arrival of materials and components to support the
manufacturing plan.
• Both logistics requirements and manufacturing requirements
must operate in parallel
171

Computer Aided Design (CAD)
• Computer Aided Design (CAD) involves the use of
computer in Creating, Analyzing, Modifying,
Optimizing and Drafting/ Documenting a product
data so as to achieve its design goal efficiently and
effectively.
• The various phases of CAD section are presented in
the following form:
• Geometric model
• Design and Analysis
• Design optimization
• Drafting and Documentation
172

Computer Aided Manufacturing (CAM)
• Computer Aided Manufacturing (CAM) is defined
as a process of use of computers in planning,
manufacturing, inspecting and controlling the
manufacturing operation directly or indirectly.
• CAM includes those activities which
manufacture the product with the product
drawing and technical illustration as an input
from the CAD and then make the product ready
for shipment after inspection and packaging
173

Computer Integrated Manufacturing (CIM)
• Computer Integrated Manufacturing (CIM) is defined as a
process of integration of CAD, CAM and business aspects
of a factory and it attempts to describe complete
automation with all processes functioning under computer
control.
• CIM includes Management Information System (MIS),
sales marketing, finance, database management system,
design, manufacturing, monitor and control and bar code
software etc., which helps to manage and control the
overall factory environment.
• CAD, CAM and CIM basically involve fundamental
principles of these underlying branches with hardware
and software to operate and utilize them effectively
174

Enterprise Resource Planning (ERP)
• Enterprise Resource Planning (ERP) is an information technology
industry term for integrated, multi-module application software
packages designed to serve and support several business functions
across an organization.
• A strategic tool that helps the organization improve operations by
integrating business processes and helping to optimize the
allocation of available resources.
• These systems are commercial software packages that facilitate
collection and integration of information related to various areas of
an organization such as finance, accounting, human resources,
inventory, procurement, and customer services.
• ERP acts as a core information centre of the organization that leads
to better understanding of its business, direct resources, and plan
for future.
175

Poka-yoke
• Poka-yoke roughly means "avoid unexpected
surprises" or "avoid blunders" in Japanese.
• In English, a poka-yoke is sometimes referred to
as "mistake-proof" or "fool-proof."
• Essentially, a poka-yoke is a safeguard that
prevents a process from proceeding to the next
step until the proper conditions have been met.
176

Poka-yoke
• Poka-yoke ( ポカヨケ , [po-kah yo-kay]) is a
Japanese term that means "mistake-proofing" or
"inadvertent error prevention".
• A poka-yoke is any mechanism in a process that
helps an equipment operator avoid (yokeru )
mistakes (poka ) and defects by preventing,
correcting, or drawing attention to human errors
as they occur.
• Prevention is better than cure.
177

Poka-yoke
• Poka-yoke is a technique for avoiding simple human
error in the workplace.
• Also known as mistake-proofing, goof-proofing, and
fail-safe work methods, poka-yoke is simply a
system designed to prevent inadvertent errors made
by workers performing a process.
• Dr. Shigeo Shingo, a renowned authority on quality
control and efficiency, originally developed the
mistake-proofing idea.
• Realizing its value as an effective quality control
technique, he formalized its use in Japanese
manufacturing as the poka-yoke system.
178

Poka-yoke
• Poka-yoke is based on prediction and detection.
• Recognizing that a defect is about to occur or
recognizing that a defect has occurred.
• Consequently, there are two basic types of poka-
yoke systems.
• The control poka-yoke does not allow a process
to begin or continue after an error has occurred.
• It takes the response to a specific type of error
out of the hands of the operator
• A second type of poka-yoke provides some type
of warning when an error occurs
179

Steps in Poka-yoke
• Step 1: Identify the problem. ...
• Step 2: Find the root cause. ...
• Step 3: Determine which type of poka-yoke to
use. ...
• Step 4: Determine the most appropriate poka-
yoke method to use. ...
• Step 5: Test your poka-yoke system to see if it
works. ...
• Step 6: Train employees.
180

World Class Manufacturing Final June 23.pptx

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World Class Manufacturing Final June 23.pptx