competitive manufactuing

Competitive Manufacturing & Benchmarking

By-Manoj TiwariAsst. ProfessorDept. of Fashion Technology (DFT)NIFT-Gandhinagar

Session-2

Manoj Tiwari/DFT/NIFT-G’Nagar 2

Content…

Competitive Manufacturing in the Global Context

World Class ManufacturingBenchmarkingJugaad


These were the days of Monopoly…NO Competition…

A market structure where there is a single seller of a unique productNo competition, as the firm = the marketPotential for abuse of monopoly position


Key features of OLD Aged manufacturing practices…

Products were sold in to stable and relatively undemanding environments.Purely based on price and qualityLogistics were organised around the principle of mass production. Low cost was to be achieved through high volume.Machinery was thus designed to produce specialised products, and machine changeovers were to be minimised.


Key features of OLD Aged manufacturing practices…

This led firms to hold large inventories of incoming materials, work-in-progress and finished products, just-in-case anything might go wrong and interrupt the flow of production.Quality procedures were designed so as not to get in the way of production-flow.Quality inspection was placed at the end of the production line, and faulty products were reworked before delivery.


And…Scenario Started changing…

In Europe, North America and Japan, these market conditions began to change in the 1970s - customers wanted increasing variety and quality, and were unwilling to trade-off quality against price. This led producers in these countries to adopt new organising principles for their production processes.


And…Scenario Started changing…

But Indian Market Dynamics were still passive…!!!

Thank to LPG…In the beginning of 90’s and subsequently Computer and IT revolution…!!!


Globalization and Competition…

Can you recall…


Globalization and Competition…


Competitiveness…

The future is not for the “BEST PRACTICES”but for the “NEXT PRACTICES.”- Prof. C.K. Prahlad

“ If you don’t have the competitive advantage, Don’t Compete.” – Jack Welch


Competitiveness means…

It means picking your battles—competing where and when you choose and on terms that you dictate.It means you are in control and your competitors struggle to emulate your success.


The Present age…

World is very small…!!!IT revolution has made it much smaller…!!!

We can thank the Internet, or blame the Internet if you prefer, for opening markets to product and services almost without regard to time and distance.


Competitive Edge…


What do you mean by World Class…


What is World Class Manufacturing…

Defect FreeFastFlexibleLeanEnvironment friendly


World Class Factory…

The factory is producing a saleable product, designed to satisfy the end-user or buyer.The R&D and Marketing units of the company have done or are doing their jobs accordingly and The factory management is committed to produce the right products the right way.


World Class Factory…

But this is again a limited definition…!!!It should be taken in wider prospective-

Include suppliers’ practicesInclude vendors/ Job work etc. practices.

Means, A world class factory is not alone…it includes the complete system, hence covers entire supply chain…!!!


The Comparison…


What are these awards and what is the methodology…

Demings Quality Award-AbhijeetJuran’s Award-NishantSix-Sigma-NishitMalcolm Baldrige Award-UrviTPM Award-Shivashakti


What should be the approach for WCM…

Must be in control of –Processes and resourcesMarkets and customers and Information.


Benchmarking…

‘In God we trust, everything else we measure’

“Benchmarking”…is the goal of To measuring something…!!!

Benchmarking…

Benchmarking is the process of identifying, sharing, and using knowledge and best practicesBenchmarking is the measurement against defined standards (benchmark)

Benchmarking…

Benchmarking is the continuous search for and adaptation of significantly better practices that leads to superior performance by investigating the performance and practices of other organizations (benchmark partners).

Benchmarking…

It is not a method for 'copying' the practices of competitors, but a way of seeking superior process performance by looking outside the industry. The term benchmark refers to the reference point by which performance is measured against. It is the indicator of what can and is being achieved.

Benchmarking…importance…No measurement---No improvementNo improvement---If we don’t know how we are workingTo know, how we are working---We need to MEASURE it…!!!

But…measuring does not automatically lead to improvement: it is simply a necessary condition


Benchmarking…Methodology…

1. What to benchmark?2. Whom to benchmark against?3. How to benchmark?

What to Benchmark…

It can be any key issue. Selection of the right parameter for benchmarking is must. So priority should be set after well thinking process and should have clarity.Product, Process, Practices or other performance data, say defect level%, absenteeism etc. can be used for benchmarking.

Whom to benchmark against…Benchmark can be –

Within (Itself against itself)- From an own baseline.Rework levelRejection levelOvertime Hrs.

Itself against othersSister plantsCompetitors within the same sectorFirms from outside of the sector, but with similar processesBest practice firms in any sectorCustomers & suppliers

How to Benchmark…steps…Identifying a critical process that needs improvement.

Identify an organization that excels in the process, preferably the best

Contact the organization that you are benchmarking; visit them, and study the process or activity.

Analyze the data.

Improve the critical process at your own organization.

Types of Benchmarking…

Primarily, there are three types of benchmarking-

1. Process Benchmarking2. Performance Benchmarking3. Strategic benchmarking

Types of Benchmarking…Process Benchmarking…

Focuses on day to day activitiesTo improve the way of day to day activities of the plant

Quality issuesCustomer complaintRework levelMachine breakdown timeSkill developments/training timesLabour recruitements

Types of Benchmarking…Process Benchmarking…

Involvement of Lower/Middle-Lower managementQuick Results and faster improvements

Types of Benchmarking…Performance Benchmarking…

Prime focus on assessing Competitive positions.Its done by comparing products and services of other organization at the respective level.When dealing with performance benchmarking, organizations want to look at where their product or services are in relation to competitors on the basis of things such as reliability, quality, speed, and other product or service characteristics.

Types of Benchmarking…Strategic Benchmarking…

Strategic benchmarking deals with top management.It deals with long term results.Strategic benchmarking focuses on how companies compete.This form of benchmarking looks at what strategies the organizations are using to make them successful. This is the type of benchmarking technique that most firms use focusing on long term results.

Issues with Benchmarking…

What is best for someone else may not suit youPoorly defined benchmarks may lead to wasted effort and meaningless results.Incorrect comparisonsReluctance to share information

Benchmarking looses effectiveness when…

Data is not obtained for the process being measured – and analysis becomes subjectiveNo peer group/best practice identified (including data available)The gap between current state and best practice is captured but nothing is done about itAssumed best practice isn't best practiceBenchmarking happens as a one off event and not reviewed periodically


What is JUGAD…

What is Jugad…


Thank you…

competitive manufactuing

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