7 steps to world class manufacturing

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7 steps to World Class Manufacturing Competitive Edge Management Consultants FICC I

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Page 1: 7 steps to world class manufacturing

7 steps to World Class Manufacturing

Competitive EdgeManagement ConsultantsFICCI

Page 2: 7 steps to world class manufacturing

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.

Page 3: 7 steps to world class manufacturing

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

Page 4: 7 steps to world class manufacturing

What does it mean to be a world-class Manufacturer?

It means you are in control and your competitors struggle to emulate your success.

Page 5: 7 steps to world class manufacturing

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.

Page 6: 7 steps to world class manufacturing

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

Page 7: 7 steps to world class manufacturing

1. Focus on ‘Competitive Quality’

Today’s dynamic and turbulent business environment has shifted the focus of the organizations from “Quality” to “Competitive quality”. With ever changing customer requirements, quality is no more a competitive weapon. Every organization has quality today. What separates a world class organization from others is - how better you are from the rest of your competitors.

Everybody in the organization must think and demonstrate that they can do better. The need of the hour is to constantly challenge the status-quo and develop a constructive level of dissatisfaction with the present performance.

Model of Continuous improvementContinuous improvement guidelines

Measures of Mfg. excellence

KaizenPDCAReliability improvement

SMAIC in action

Assessment of performance

Six sigmaFMEA

Benchmarking - techniqueManufacturing best practices

Benchmarking with JapanBPR

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TQM Rolling plan

Page 8: 7 steps to world class manufacturing

2. Implement Lean Manufacturing systems

Lean manufacturing is an overall methodology that seeks to minimize the resources required for production by eliminating waste (non-value added activities) that inflate costs, lead times and inventory requirements, and emphasizing the use of preventive maintenance , quality improvement programs, pull systems and flexible work forces and production facilities.

Principles of lean include zero waiting time, zero inventory, scheduling (internal customer pull instead of push system), batch to flow (cut batch sizes), line balancing and cutting actual process times.

Value Chain Mapping

Reducing set-up time

Takt Time

Five S-techniqueJust In time


Lean Management

Taguchi Methods

Total Productivity MaintenanceTPM Checklist

Supplier best practicesSupplier evaluationSupplier quality improvement

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Root cause analysis

Supply chain

Non-Value Adding Activities

Page 9: 7 steps to world class manufacturing

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 cost structure enjoy an obvious advantage in profitability and the ability to adjust pricing to meet competitive pressures if necessary to maintain or gain market share.

Costs are really just part of the scoreboard. When a company implements world-class operational processes, it improves multiple measurements simultaneously,including cost, lead times, inventory and customer service.

Cost of Quality

Non-Value Adding Activities

Mistake ProofingPokayoke

Quality Cost-Function Wise

Quality,Cost & Profit

Reducing Defectives through FMEA

Waste ReductionWaste Assessment

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Gemba Kaizen - A low cost approach

Design of experiments

Controlling variationAnalysis of variance

Page 10: 7 steps to world class manufacturing

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.

Good ideas are not enough; well-managed processes for bringing new products to market faster than the competitors can lead to significant competitive advantages. Bringing products faster into the market does represent some element of risk, which can be properly evaluated.

Risk Analysis

Risk Management

Creativity & innovation

Time based competition

New product development


Ten commandments of time

Niche Marketing

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Page 11: 7 steps to world class manufacturing

5. Exceed Customer Expectations

The ultimate key to success in any business enterprise is to please your customers. The most successful companies don’t just meet customer expectations, they exceed them and beat the competition by setting the standards at a level that makes it difficult, if not impossible, for others to surpass.

Are you a customer driven org.Customer expectations

Customer satisfaction measurementCustomer loyaltyCustomer practices of global leaders

Internal healthCustomer supplier model


Quality management principles

Exceeding expectations

Customer survey formsQuality Function Deployment

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Competitive Edge

Quality MIS

Page 12: 7 steps to world class manufacturing

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.

For manufacturers, the fastest and easiest way to achieve this

goal is through partnerships with companies that have attained superior capabilities in particular phases of the process-like 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.

6. Streamline Outsourcing Processes

Principles of outsourcing

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Process classification framework

Page 13: 7 steps to world class manufacturing

7. Have a Global perspective

There’s no question the world is shrinking, and virtually every business is now involved in some form of international trade—whether marketing and selling to customers in other 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.

International Marketing

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Shingo prize for Mfg. Excellence

Page 14: 7 steps to world class manufacturing

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.

Source of information and advice

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Research, Artwork, Design and 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.