zed maturity model

25

National Accreditation Board for Education and Training,Quality Council of India

Acknowledgement

Quality Council of India acknowledges the significant contribution from the following experts in preparing this ZED maturity model.

1. Sh. Amarendra Sinha, Special Secretary & Development Commissioner (MSME)

2. Dr. R P Singh, Secretary General, Quality Council of India

3. Sh. Ramesh K Pandey, Joint Development Commissioner & CVO (MSME)

4. Sh. Vipin Sahni, CEO, NABET, QCI

5. Sh. K. N. Ratan, NABET Expert, QCI

6. Dr. (Mrs.) Sarita Nagpal, Principal Adviser, CII

7. Sh. Anupam Kaul, Senior Counselor, CII

8. Sh. A Wadood, Senior Counselor, CII

9. Sh. A Wadhawan, BHEL

10. Sh. A.K. Tomar, Maruti Suzuki Ltd.

11. Sh. Dinesh Agarwal, NTPC

12. Sh. Shikhar Jain, CII

13. Sh. A. K. Ghose, Principal Adviser, NABET, QCI

14. Sh. A. K. Jain, Principal Adviser, NABET, QCI

The process for creating this maturity model was initiated in September 2014 and

completed in January 2015.

ZED/NABET/15012015 Page 1

ZERO DEFECT – ZERO EFFECT

MATURITY ASSESSMENT MODEL

Foreword

For an industrial revolution to take place there is a need for Indian industry to set new benchmarks and goals for innovative design, enhanced value addition across supply chains, manufacturing and service performance, stakeholder engagement and societal responsibilities notably environmental performance.

A critical enabler to raise levels is the development of technology that harnesses the demographic dividend through suitable combinations of automation and skilling. What are emerging as non-negotiable in a competitive global market are expectation of conformance to global standards, and near zero levels of product defects and carbon footprint.

Manufacturing performance focusing on zero defects and zero effects can be defined by two sets of parameters - the enablers and the outcomes.

On the enabler side, significant parameters are:

state-of-the-art technology infrastructure both in R&D and manufacturing

quality of technical human resource both in R&D and in manufacturing

a clear strategy backed by strong controls on available infrastructure to deliver quality that is closest to best capability

a clear strategy backed by strong controls to reduce environmental impact of industrial activity and consumption

planned investments in R&D and technology/IP acquisition to sustain the quality and environmental performance

On the outcome side important parameters are:

Innovative product designs/IP assets catering to world class quality levels and zero or minimum environmental impact

Highly consistent quality performance to agreed standards

The environmental/energy/social footprints on the entire product lifecycle

Value proposition for all stakeholders

The Brand equity of ‘Made in India’

Standardization plays an important role in upgrading products, sustenance of quality and technological advancement in manufacturing. Standards also serve as a very powerful strategy for competitiveness.

The Zero Defect Zero Effect Maturity Assessment Model has been conceived and structured to offer graded benchmark levels of an organization’s performance through a set of standard enablers and outcomes focused on quality and environmental performance in easily understood terms.


The Model affords both self-assessment as well as third party assessment and will serve as the criteria for the ZED Assessment Programme.

Vision:

To enable the advancement of Indian Industry to a position of eminence in the global market place and leverage India’s emergence as the world’s supplier through ‘Made in India’ mark.

Mission:

To develop and implement a ‘ZED’ culture in India based on the principles of

• Zero Defect (Focus on Customer)

• Zero nonconformance/ non-compliance

• Zero Waste

• Zero Effect (Focus on Society)

• Zero Air Pollution/ Liquid Discharge (ZLD)/ Solid Waste

• Zero wastage of natural resources

Scope:

The Model shall be applicable for all sectors of manufacturing and service industry

• Address quality and ecological needs of domestic and overseas customers, society, employees, partners, regulators and investors.

Objective:

• To develop a Maturity Model giving criteria for compliance/assessment to at each level leading to a state of Zero Defect and Zero Effect.

Approach:

• The criteria shall be laid in the form of graded improvements that will be demonstrable with the highest grade corresponding to world class standards.

• The criteria shall include both enablers and results.

For more information:

National Accreditation Board for Education and Training (NABET), Quality Council of India6th Floor, ITPI Building, 4-A, Ring Road, I.P. Estate, New Delhi – 110002, IndiaTel: +91-11-23323416 – 20, Email: [email protected], Website: www.qcin.org

ASSESSMENT CRITERIA


mailto:[email protected]

1. Organizational level

An Organization applying to be evaluated on the ZED maturity model shall demonstrate and will be assessed on the following aspects at the organizational level.

Manufacturing capabilities

The organization shall acquire or develop manufacturing capabilities that enhance its ability to manufacture products in conformance within agreed specifications on a consistent basis taking into account all variations that may occur from inherent causes. The organization shall regularly review and upgrade its manufacturing capabilities in line with changing customer expectations and technologies. An organization meeting global manufacturing standards shall operate its manufacturing processes in a Lean - Six sigma environment, with ppm levels and operational efficiencies that match with the best in the world.

Design capabilities

The organization shall develop or have access to design capabilities that will enable it to design, develop and constantly upgrade its products and service features to meet changing customer requirements and expectations. An organization meeting global design standards shall operate in a highly innovative environment with a fully evolved design capability aided with IT enabled design tools and a clear understanding of design processes such as DFSS, QFD, DFMA and TRIZ.

Quality/Environment/Safety Assurance Systems

The organization shall develop and maintain quality/environment and safety assurance management systems that enable it to identify and address customer, environment and employee needs in a systematic manner, with a fully evolved process management system, clearly defined objectives and performance indicators that are fully integrated and synchronized to cater to the identified needs. The management system shall create an environment for the full realization of manufacturing capability, design capability and people and partnership potential to meet customer expectations, environment performance goals and safety standards. An organization operating at global standards shall have a single integrated management systems, which enables agility, flexibility, risk based decision making and enhances stakeholder confidence.

People development and engagement systems

The organization shall develop people competence and involvement commensurate with the identified organization capability to deliver product design, conforming product, environmental and safety performance at each maturity level. A highly matured organization shall have developed an environment where people are empowered, motivated, fully engaged, feel responsible to innovate and take ownership of products and environmental performance.

Standardization & Measurement systems for Quality and Environment


The organization shall develop and install dynamic framework of process and product standards and credible measurement systems that are aligned to provide true indicators of product and process performance, customer feedback, environmental impact and safety performance in real time, and enable quick and effective decision making. A highly mature organization integrates all measurements with business information systems that enable full control on current and predicted performance through the use of intelligent measurement and statistical tools.

Learning and Improvement systems

The organization shall develop a learning environment where management and people develop the habit of using and relying on data, trends and other internal and external information to understand and improve products, process performance, environmental and safety performance. A highly mature organization encourages and practices the capturing, wide dissemination and use of knowledge generated from internal and external sources to make improvements and sustain its growth and quality, environmental performance.

Legal compliances (Hygiene factor)

The organization shall have a policy of no tolerance for any non-compliance with statutory and regulatory requirements related to product quality, environment and safety. A mature organization shall have an agile system of identifying new regulatory requirements, regularly performing compliance audits and checks that are reviewed and monitored by the Board or equivalent.

2. Operational level

An Organization applying to be evaluated on the ZED maturity model shall demonstrate and will be assessed on the following enablers and outcomes at the operational level in relation to Product Quality, Environmental performance and outcomes. The maturity level for each enabler and outcome are given in Annex 1.

2.1Enablers for Product Quality

A. Process Design for Quality

Enabler No. Enabler DescriptionA-1 Technology selection &

continual UpgradationDesign, Develop & upgrade or Source technology commensurate with product design that meets changing customer and market need on a consistent basis.

A-2 Process Capability Assessment & Enhancement

Realize the process potential, stabilizing and continuously improving process performance.

A-3 Coupled manufacturing (cellular design)

Achieve maximum efficiency of resources by multi machine operations, quick quality feedback, continuous flow & throughput time reduction.

A-4 Low Cost Automation Replacing manual efforts with alternate


Enabler No. Enabler Descriptionmechanized operations developed locally to reduce quality variations, time & cost of operations.

A-5 3 M Approach for Operations

Work place design for reducing Muda, Mura, Muri (3M) in operations.

A-6 Measurement systems Install dynamic & reliable measurement systems, which provide true indicators for product and process performance to enable quick and effective decision making.

B. Pre-production (startup activities)

Enabler No. Enabler Description

B-1 Process flow & sequencing

Manage end to end process for production through use of appropriate technology, sequencing of operations, process controls & process checks, to ensure conformance of the product to design specifications on a consistent basis.

B-2 Process validation Proving through suitable tests and confirmations on the product that the process has the capability to deliver design requirement on a consistent basis.

B-3 Supplier development Identify & develop supplier capability to enable supply of consistent conforming products and services to the organization and for outsourcing non-core activities while meeting the quality and reliability parameters.

C. Production and maintenance activities


C-1 Swachh workplace (5S) Create a clean, tidy, organized and cheerful workplace for improving productivity by involving all.

C-2 Daily works management Create a continually improving workplace for enhancing quality, productivity and safety by involving all on daily basis.

C-3 Autonomous maintenance

Creating work practice where operators take ownership of their equipment and processes to ensure un-interrupted operation.

C-4 Planned maintenance Scheduled maintenance at fixed intervals, ensuring that the equipment or item is operating reliably at reduced cost and downtime.

C-5 Operational Efficiency Optimization of all production processes, systems, layout to maximize machine and human productivity with lowest use of



resources using appropriate tools such as SMED.

C-6 Process Control Application of statistical quality control method, to monitor and control processes, to identify variances as a basis for continual improvement

D. Product Design for Quality


D-1 Product Design Regularly develop and upgrade the product to fulfill changing needs and expectations of the customers.

D-2 Design capability Have internal resources or access to design capabilities to enable the designing, development and constant up gradation of product and service features.

D-3 Design methodologies Have a systematic approach for design, review and validation to ensure product design meets customer needs and expectations.

E. Post production activities


E-1 Installation and commissioning:

Procedures related to installation and commissioning have been defined and are implemented for efficient & defect free operations at the customer end.

E-2 Transportation and storage

Facilities & methods for storage and transportation are appropriate to ensure product quality is retained till it reaches the customer.

E-3 Customer Education for product usage & Maintenance

Awareness is given to the user for proper use of the product during its life cycle to ensure that it performs as per requirement.

E-4 Customer Servicing Have processes to provide service to the customer, to meet his post supply needs.

2.2 Enablers for Emission, effluent and waste disposal activities

F. Process Design for Environmental control

Enabler No.

Enabler Description

F-1 Technology selection & continual Upgradation

Design, Develop & upgrade or Source technology commensurate with product design that meets environmental regulations on a consistent basis and continually enhances environmental performance


Enabler No.

Enabler Description

F-2 Systems for abatement of Effluent/Emission/ Solid Waste

Design plant & equipment and processes as a an integral part of manufacturing or service delivery systems so as to eliminate, reduce, treat or dispose effluents / emissions and solid wastes

F-3 Systems for energy efficiency

Design Plant & equipment, layouts, buildings, practices, monitoring mechanisms to reduce energy consumption, and to make manufacturing, transportation and storage systems energy efficient when compared to baseline energy consumption levels

F-4 Systems for natural resource conservation

Design or select processes that eliminate or reduce natural resource use and substitute conventional energy sources with renewable sources

G. Pre-production (startup activities) for environmental controlEnabler

No.Enabler Description

G-1 Installation of environmental protection and measuring equipment

Install Plant & equipment, monitoring mechanisms required to eliminate, reduce, treat or dispose effluents/emissions and solid wastes as per design for every new process or product line

G-2 Installation of energy conservation and measuring equipment

Install equipment, layout, buildings & work spaces, monitoring mechanisms to reduce energy consumption during manufacturing, transportation and storage systems.

H. Production and maintenance activitiesEnabler

No.Enabler Description

H-1 Planned maintenance of environmental control systems

Ensure the maintenance of equipment installed for environmental control to keep them operational with lowest downtime.

H-2 Planned maintenance of energy control systems

Ensure the maintenance of all equipment installed to keep the energy consumption level at the optimum, prevent energy wastage and leakages.

I. Product Design for Environment

Enabler No.

Enabler Description

I -1 Design compliance with regulatory requirements

Develop and design the product to fulfill compliance with environmental regulatory requirements for products.

I-2 Design for minimum Life Cycle Environmental impact

Develop and design the product so to reduce the GHG emission and preserve natural resources in the entire product lifecycle (cradle


to grave) to the lowest.

J. Post production activities


J-1 Disposal after use Have information to educate consumer for product disposal in an environmentally safe manner and to provide for disposal systems where required by statute or environment impact level is high

2.3 Enablers for resource management

K. Facility


K -1 Plant layout Planning for the location of all machines, utilities, employee workstations, material storage areas, pathways, service areas, space necessary for the operation of processes, and for the flow of materials and people movement within plant area.

K-2 Storage system Facilities for the safe and systematic storage under controlled conditions, of raw materials, consumables, spares, in-process material, semi-finished products and assemblies, finished products, packaged products, with due identification, traceability systems to permit easy access and retrieval.

K-3 Material handling systems

An integrated system of activities, equipment, and procedures related to the moving, storing, protecting and controlling of materials that delivers the required material or product at the designated location at the right time in a safe and controlled manner

L. Human Resource


L -1 Internal skill development/ Multi-skilling

Coordinated activities of imparting knowledge and skills and enhancing desired attributes among persons that are necessary to perform one or more role based tasks, and the



evaluation that the desired competencies have been achieved

L-2 External skill certification Confirmation through examination conducted by an independent authorized agency, that the required competencies for a role based task has been achieved.

L-3 Employee involvement activity

People’s participation in planning and execution of policies that relate to or impact their work. Employee involvement presupposes the organization’s commitment to improving the partnership and developing shared understanding between the people and their managers.

M. Outsourced activities


M -1 Selection, control and improvement

Organization’s system for identification, evaluation, selection, monitoring of performance, providing feedback to outsourced organizations with the objective of enhancing value of partnership to both.

N. Innovation and creativity - Safeguarding


N-1 Trademark Safe guarding organizational logo/ brand logo for individual products

N-2 Industrial Design Safe guarding new or modified designs developed by an organization

N-3 Copyright Safe guarding original documented publications of an organization against unauthorized use

N-4 Patent Safe guarding new products/ processes and Technologies against unauthorized use

2.4 Outcomes

O. Outcomes for Quality Performance

Outcome No. OutcomeO -1 Outgoing (customer end) quality performance level / % improvementO-2 In-house quality performance level / % improvementO-3 Field performance level / % improvement


P. Outcomes for Process Performance

Outcome No. OutcomeP -1 Total Employee Involvement

P -2 5 S implementation

P -3 Rolled throughput yield

P -4 Process Capability (Cp/ Cpk)P -5 Operational Equipment Efficiency

Q. Outcomes for Environmental Performance

Outcome No. OutcomeQ -1 Optimal use of natural resourcesQ -2 Energy performanceQ -3 Environmental performance – air/effluent / solid wastes / renewable

resource use

Q -4 Product Life Cycle Assessment Score

R. Outcomes for overall Company performance

Outcome No. OutcomeR -1 Turnover growthR -2 Operating profit/ % improvementR -3 Safety ScoreR -4 Customer feedback – (common scale to be created to facilitate

comparative performance)

R -5 Inventory turnover


Annex 1 : Maturity Matrix

Organizational Aspects(Level descriptions at successively higher levels are additive)

Sl. No.

Aspect Level 1 Struggler

Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

1 Manufacturing capabilities

Basic manufacturing facilities.

Little or no planning for quality of production. Frequent breakdowns. No concept of process control. No consideration for environmental aspects. No new capex investments in last 5 years.

Manufacturing facilities aligned with minimum product specifications. Planned maintenance for critical machines.

Outgoing quality controlled through inspections. Some Environmental / energy aspects controlled essentially for cost benefits.

Manufacturing facilities capable to deliver better than minimum specifications. Planned maintenance in all areas. Organization routinely assesses and improves process capabilities, with focus on wastes, energy conservation, and safety.

State of the art technology and automation for all critical processes. Six sigma and lean are well understood and used for improvements. TPM implemented in shop floor. All operations are designed ad monitored to deliver optimized quality, environmental and safety performance.

Comprehensive Lean - Six sigma environment. Sigma levels and operational efficiencies match with the best in the world. Full TPM implemented. State of the art facilities for environmental protection with highest energy efficiency ratings.

2 Design capabilities Little or no design and development activity. Product profile is stagnant, or copied without engineering application and no verification

Product development carried out using systematic reverse engineering with design verification

The organization has access to design capabilities that enable it to design, develop and constantly upgrade its products and

The organization has internal design capabilities, with clear understanding and use of design processes such as QFD, DFMEA.

Operates in a highly innovative environment, has fully evolved R&D programmes, aided with IT tools, sustained use of design processes


Sl. No.


Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

service features to meet changing customer requirements and expectations. Critical designs are validated.

Investments in R&D facilities, manpower. All designs are validated.

QFD, DFMEA DFSS and TRIZ,

reliability studies

3 Quality/ Environment/Safety Assurance Systems

Non-systematic approach to the organization of activities, with only some basic working procedures or instructions in place.

Activities are organized by

function, with a basic

quality management

System in place.

Activities are organized in a

process-based quality

Management system that is effective and efficient. Basic environmental / safety procedures are in place.

All management systems – QMS, EMS, EnMS, OHSAS in place. All systems deliver value to organization and respective stakeholder

A fully integrated context and risk based management system that takes into account and sustains organizational objectives in all areas in a balanced way.

4 People development and engagement systems

No systematic approach for people development. No orientation for skills matching with process / product requirements. Recruitments take place in informal manner

Skills training are provided on an ad hoc basis.

Recruitments based on evaluation of basic competencies. No team based approach.

Competences are developed as part

of an overall plan, which is linked to the organization's

Technical needs. Ideas for

improvement are collected. Activities such as 5 S, Kaizen, QC circles initiated. Basic awareness of safety and waste reduction.

A skills qualification system is established within the organization, backed with organized training and coaching. Competencies extend to environmental, safety, energy conservation areas.

A culture of team based working is

People development and engagement accorded very high management focus. People treated as priority organization resource that needs to be nurtured, associated and retained. High levels of job enrichment act as key motivators.


Sl. No.


Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

in place with self-motivated improvement projects taken up by teams.

5 Standardization & Measurement systems for Quality and Environment

High variation in process / product performance. Inconsistent methods across operators. Frequent recurrence of similar problems. No approach for process documentation. Measurement systems are highly unreliable.

Processes for key products are monitored, but process limits are not always adhered.

In process checks in place and used for conformance decisions but results are not analyzed.

A few work instructions are documented, but not fully implemented.

5 S initiated.

All core processes are documented, and monitored. Process controls include control charts, MSA, process capability studies. Results are used for process corrections and for improving process standards. Calibration control system in place.

2 S implemented in shop floor

All processes including for environmental and safety controls are documented, monitored and frequently reviewed.

The organization uses higher SQC tools for process study and optimization.

3 S implemented in shop floor

Process standardization is in-built into intelligent process controls.

The organization has state-of-the art measurement systems that enhance its capability for new and innovative product and process development.

5 S implemented across all areas.

6 Learning and Improvement systems

Basic knowledge to run the processes. No knowledge of better approaches.

Basic IT systems Installed. Data gets

captured digitally, but used only for investigations. No documentation of problems solved. Target setting is ado.

Trends analysis conducted to understand progress and comparisons. Target setting is based on past performance. Problem solving results are

Knowledge is considered a business resource, and is collated, preserved, disseminated and used. Knowledge management extended to environmental and

All decisions are taken with full knowledge and understanding of risks and opportunities based on a rich repository of intelligent knowledge base that is constantly


Sl. No.


Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

captured and disseminated. Management encourages learning.

safety concerns. Knowledge and risk managers are in place that assists in risk based target setting.

updated and augmented by all concerned.

7 Legal compliances (Hygiene factor)

Legal compliances are managed in documents through unethical means.

Legal compliances are assigned to a person. All observed non-compliances are promptly corrected.

Legal compliances are a declared management priority, and a shared responsibility among all employees. All round effort to prevent non-compliances such as near-miss reporting.

Legal compliances are clear non-negotiable across the organization and associated persons and organizations. Internal audits include verification of legal compliances. Reviews carried out by highest authority such as Board.

Preventive health checks/external audits of the organization for identifying all risks that may lead to legal non-compliances.


Maturity Matrix

Enablers

No. Aspect Level 1 Struggler

Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

A-1 Technology selection & continual Up gradation

Legacy set up based on technology as available and no efforts or initiatives taken for improving it..

Technology matched to specifications, machine setting is manual.

Process control equipment installed but monitoring is manual.

Several machines / process equipment are PLC, CNC controlled, with pre-sets for process parameters.

Machines are efficient in terms of process cycle time and energy consumption. Monitoring is enabled through triggers on display panels and cut-offs.(Andon System)

More than 80 % of processes are run though precision controlled manufacturing, with self-monitoring triggers /alarms / corrections.

Technology permits wider specification ranges.

State of the art manufacturing reduces the variance and Cpk values to 6 sigma levels.

Production cycles enable fully single flow process.

Energy efficiencies are world class.

A-2 Process Capability Assessment & Enhancement

No concept of process capability / process performance assessment.

Process performance for a few processes is monitored through control charts.

No improvements in control limits in the past one year.

Process capability is assessed for some critical processes through short term studies.

Results are used for process corrections / improvements. Cp /Cpk monitoring

Process performance closely matches process capability for majority of processes.

Cp / Cpk, Process performance results are regularly tracked

Processes have reached a maturity level, where process performances are predictable.



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

and review is done.

Control limits are revised after each study.

for finer corrections to process.

A-3 Coupled manufacturing (cellular design)

Each Operation / process functions independently

No awareness on material flow and its effect on productivity

Awareness on Material Flow created.

Employees are aware of importance of coupling, methods and process for coupling after suitable training

Strategy identified for coupling with the previous and next operation.

Multi skilling of operators.

Factory begins to make coupling points

Manufacturing management is based on creating more & more couplings

Action on Dead Inventory Started

Coupling Points are all over the factory

Plant is beginning to combine multiple lines into single unit

Work started to reduce number of parts in coupling points

Combining workstations into lines and small lines into large lines

Stabilized processes are optimized for continual flow of process

Concept of cellular layout for optimizing flow

Manufacturing value analysis started for waste elimination.

Total Cellular Manufacturing in place.

The system is highly flexible and adaptable

A-4 Low Cost Automation Material Handling/Material movement / are seen as part of cycle

These are not seen as waste or creating any strain on men

Need to automate material transfer and movement as a waste elimination activity seen by all

Measurements are made s Time, distance, man hours used for the

The concept of low cost automation is brought into small group activity, quality circle etc.

Kaizen sheets, one point lessons, information sharing, display

Low Cost Automation is companywide activity

Effect of initial benefits like reduction in operator fatigue and productivity

Feedback from user for continual improvement by PDCA

Effectiveness results in improvement in Productivity, Quality, Cost,



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

above activities Use of Jigs,

fixtures , guides, templates and PLC and limit switch etc. for Low Cost Automation

areas created Production

management give ideas, design plans for low cost automation and regularly monitors the progress

improvement are regularly reviewed and improved

Parameters like cost benefit, size, maintainability, are measured and improved.

Delivery, Safety, Morale

A-5 3 M (Muda, Mura, Muri) Approach for Operations

No awareness on waste

Information on waste is only at some levels for review as “post-mortem”

Effect of waste or profitability and customer not appreciated.

Waste is identified as an enemy. Training on waste elimination given to all

Employees have a common understanding on Waste

Classification of waste under various heads done

Teams for waste reduction are formed and Action Plans are in place. Management regularly reviews these projects for support & corrective action when needed.

Results have started showing and are being quantified

Waste due to unbalanced lines is taken as productivity loss and is taken up as a waste reduction activity.

Teams are formed and line balancing is achieved

Waste-elimination project is regularly reviewed and revised by top Management

Reduction in waste has resulted in reduction in manufacturing cost by 10% on year to year basis for last 3 years.

PDCA for sustaining & further improvements.

A-6 Measurement systems Little or no use of measurement data for improvements.

Product test records, if made due to external requirements are unreliable.

Process gauges, even if available,

A basic system of measurements is in place for testing in-coming quality, few in-process checks and final products.

Sampling is not linked to average quality level.

Measurement results are not

An integrated system of process & product measurements is in place.

Standard sampling plans used based on AQL.

Measurement results are analyzed to

Statistical Process Control used across the company for quality Assurance

Effective in process measurement and self-correction that eliminates product measurements in

Higher tools such as regression, ANOVA, DOE, multivariate, statistical tolerance, used for process optimization

Measurement systems are state-of-the-art that fully



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

are not calibrated.

analyzed. Core instruments

calibrated due to buyer requirements

evaluate process capability / performance.

A calibration control system is in place covering all instruments including process instruments. Measurement System Analysis (MSA) carried out routinely

critical operations. Precise

measurement capability developed that assists in product design and development.

complements design & development and in-house research studies.

B-1 Process flow & sequencing

Each operation is seen as individual activity. Improvements are for improving each operation

No systematic approach to process flow

“Process-approach” is understood

Training /awareness is imparted on process flow and concept of throughput yield.

Systems for process-stabilization by use of SPC, Cpk value for critical operations, understandings of variance and efforts to reduce variance is in use

Throughput is measured and reviewed for management control measures

Multi skilling of operators for enhancing productivity

Stabilized process are being optimized for continual flow in process

Concept of cellular-layout for optimizing flow

Value analysis of manufacturing activities for waste elimination

‘VSM’ activities started for creating an optimal flow and start for Lean manufacturing.

B-2 Process validation Ad-hoc processing.

Processes are documented and

Processes are documented and

Validation process such as Proto

Systematic Process Validation. 100%



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

No system for validation.

No assurance of meeting specification and quality requirements

followed but does not assure 100% specification and quality requirements.

followed and produce on-spec and quality products for a given set of pre-agreed features and quality specifications

type manufacturing, First piece validation or Pilot manufacturing is in place.

Quality is assured to consistently produceproducts which meets all specifications and quality attributes.

Control over the process and the finished products.

Continual learning for enhancing knowledge base for meeting customers potential needs.

B-3 Supplier development Purchases are made as per day to day requirement without any system, which results in stock-out and firefighting.

Purchase requirements are identified as critical or non-critical.

Critical items are purchased from identified suppliers.

System of supplier approval is in place based on quality and delivery requirements.

Vendor base is created, aligned to organization’s need.

Awareness for working together with suppliers is created.

Suppliers are considered partners and work together to achieve mutual benefit, involved in product and process development.

Two way feedback mechanisms in place and tracked.

Cost of incoming material verification is negligible

Suppliers are also involved in organization’s environmental and societal efforts.

Suppliers systems and capabilities have been developed to a level that they are fully matched with the organization including environmental and societal objectives

Suppliers/ Partners are involved and support strategy, policies and process of the organization.



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

C-1 Swachh workplace (5S)

Clutter all around, scarp material, papers, tools unnecessary things scattered.

Floor space unclean with Oil, grime, chips all around

No Idea on its effect on safety and productivity

5 S seen as an improvement tool. Trainings /awareness created at all levels

Factory divided into zones – Boards into all zones

Red tagging exercise started all over

Teams & leaders defined

As part of training a model machine/area is identified.

Red Tags are being continually put and removed

Criteria set for all activities / material

Visual management is in place

2S – (A Place for everything – everything is in place )

3S (cleaning activity) implemented across the company

Stratification management is also in place

Red Tags and disposal mechanism results in cause analysis for improvement

“No Oil-No Chips’ cleanliness level is achieved

Regular self-audit in place for continual improvement

Companywide audit for learning and assessment started

Reward & recognition system in place

Standards for inspection and cleaning kits are available all over the factory

Benefits are measured on regular basis

‘5 min’ ‘5 S’ activity is a routine

Workplace looks clean and cheerful

Continual Improvement in productivity and motivation is measured for PDCA

C-2 Daily works management

Targets are set by Fire Fighting on day to day basis

QCD requirements are often not set

Standardization is not in place

Factory has been divided into zone and leaders identified

Concept of DWM explained to all by awareness programmes

Concept of standardization, Exactness, Visual Management explained &started

Variances in Daily basis recorded and action taken

Standards are being continually improved by PDCA

Workers participation in day to day basis increased by

Factory runs like a well-oiled machine

QCD targets are met 50%

Continual improvement on standards, reduction in



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

Workers participation increased by morning meetings (workers & respective supervisors & various functional supervisors) for problem resolution

DWM boards are in place

Corrections are followed by corrective action by 5 Why & SPC approach

PDCA cycle concept started for problem solving

SGA/QC/ suggestions / schemes/ simplification

Information on Plan, Action and critical issues is displayed by Visual management

L1/L2/L3 meeting are a norm and done regularly. Management review on weekly basis takes action to remove long pending problems

Results of improvements are shared and recognition / reward system encourage participation

variance, OEE improvement

Visual Improvement of Plant in Actual

C-3 Autonomous maintenance

Operators are aware about 5S and they have initiated it in the working area

All operators are member of ‘AM Circle’ teams. They are fully aware about 5S purpose, concept and activities and regularly implementing it in

All operators are aware about purpose, concept and activities of Step 1, 2 & 3 of Autonomous maintenance and they are regularly implementing it in

All operators ‘AM Circle’ are regularly doing Daily Work Management (DWM) meetings and implementing Step1,2,3 and also increasing

All operators are also having knowledge of process (Step 5 of AM) and working to achieve zero defect apart from the work being performed in L4.



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their respective workplace

their respective machines

their knowledge of machine functions (Step 4 of AM) and have embraced some Equipment’s Planned maintenance activity themselves to achieve zero breakdown.

C-4 Planned maintenance Basic and optimal conditions of Equipment’s critical parts are known by Maintenance staff and difference between standard and actual condition are identified and abnormalities are rectified regularly

All sources of deterioration of Equipment’s critical parts are identified and corrected before they cause breakdowns. The breakdowns are drastically reduced.

The preventive maintenance standards are designed and are being implemented regularly to prevent breakdowns.

The L3 activities are implemented and critical parts of low life are identified and Kaizen (improvements) are done (Corrective maintenance) to increase the parts life to increase MTBF.

Apart from all preventive maintenance are being implemented the measurement of deterioration is done and Condition based Maintenance is being implemented. Also the activities of ‘Spare management’ and ‘Lubrication management’ are implemented to reduce the maintenance cost.

C-5 Operational Efficiency Performance is measured only at

Awareness of various losses

Systematic analysis of losses

Over processing and additional

The organization has matured to



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the end of month for shortfalls.

Operations are more in firefighting mode and somehow production targets are met.

leading to shortfall in meeting targets is in place.

Reasons and causes of various losses are documented and measured.

Some actions are taken for reducing and eliminating reason of losses. The benefits are measured and documented.

and appropriate initiatives identified

Training and awareness on these initiatives such as SMED, kaizen etc. Projects are identified depending on criticality to implement as per the plan.

Operational efficiency is enhanced by SPC to reduce rejects and reworks.

operations done are identified to eliminate viz. demurring, dent removal etc.

The various losses identified are minimized with suitable action plan.

Results of machine availability, quality and total cycle time are reviewed and improved.

achieve world class operational efficiency levels in its sector.

The result on productivity and profitability are reviewed and continual improvements on year to year basis are sustained.

PDCA done to improve the operational efficiency.

C-6 Process Control Process Quality Plan does not exists. No intent of developing control plan seen. No proper identification of WIP. No quality check is done for the product.

Process Quality plan in making/Quality plan exists and is followed for only key area. Some tags seen identifying material in process bins/trays. Randomly some parameters are checked on finished product.

Process Quality Plan followed. Records kept, but couldn't verified in 1/2 process. Proper tags/ route card with different color code exists. List of critical parameters available for testing and being followed intermittently.

Process Quality Plan followed for all critical process, effectiveness of controls reviewed. Material identification w.r.t challan/Invoice and test certificate is evident. List of all relevant parameters exists for testing. Random testing done as per the

Process Quality Plan followed for all process. Good system of WIP identification exists at various stages linked to challan/test analysis exists. Well defined procedures for product testing exists and being followed.



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parameters list.D-1 Product Design Design inputs are

decided by engineering knowledge

Design verification not done either by prototype or trial runs

Designs are released with preliminary checks

Design errors are corrected in shop floor drawing and same is not incorporated in original design.

Design activity is unilateral-one man show

Customer complaints are not maintained properly

Design inputs are decided by engineering knowledge with few customer inputs

Designs are reviewed unilaterally and errors found are corrected

No prototype or trial runs made before release

Design errors found in manufacturing are corrected in original

No records of error found and action taken. Similar mistakes repeat again and again

Customer complaints are reviewed some time in an unorganized way and sometime actions are taken in give relief to customer

Design inputs are decided by engineering knowledge and limited customer interaction

Designs are reviewed by an internal engineering group.

Prototype or trial runs are made before release of design.

Records of error founds are maintained

Design review and verifications are carried out.

Designs are not optimized.

Designs are modified by incorporating the internal failures

Customer complaints are maintained. reasons for failures are investigated and suitable actions

Customer inputs as received from marketing /customer visits are incorporated into Design

Designs are reviewed by cross function team before release.

Designs are improved using DOE if necessary

Customer complaints are reviewed periodically and designs are modified if found necessary

V O C is captured through QFD and how’s are identified

How much for priority How’s are fixed after

Benchmarking Design inputs from

various sources such as manufacturing, maintenance, Quality Control, Purchase are incorporated in the design

Designs are verified at customer’s operating condition (field trials) or in simulated condition at manufacturer’s place.

Designs are optimized for robustness using QE techniques as suggested in ISO 16336 on RPD



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taken to prevent in future

(Robust Parameter Design)

D-2 Design capability Not aware of how to evaluate Design capability

Design capability is assessed as an index of customer complaints and extent of failures found during manufacturing.

Design is consider more capable, if complaints are less and design failure are also less during manufacturing

Design capability is improved by design modification as necessitated by customer complaints or internal failures.

Design capability is assessed based on variation in product performance and gap analysis between actual and target performance

Risk analysis carried out and high risk area identified

DFMEA is done for high risk areas

Causes with high RPN are investigated and actions taken to improve RPN

Design capability improvement through DOE is also carried out whenever found necessary

Capability is assessed systematically and regularly.

All possible reasons for low capability are investigated systematically using several tools and techniques- seven tools, FMEA and DOE

Actions are taken to raise the capability level.

Capability levels are monitored to maintain high level of capability

Product designcapability isassessed in sigma level through score card incorporating the capability ofo parts o processes and o performance

Capability Design product

Capability is improved by analyzing and improving parts, processes and performance characteristics low capability areas.

D-3 Design methodologies There is no design process and modifications are reactive. The designs are based on

Designs are from OEMs or standard available designs. Very minor changes in designs are done on

Independent design group works to develop own designs on the basis of customer

Own a Research and development group to develop new designs to cater present and future

Marketing & research to predict future product specifications. Design and development



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available designs or copied.

reactive basis. requirements. Own standard designs are in place. Design changes/ modifications are analyzed and implemented. Software’s are used for design purposes.

requirements of customers.

Complete design process (control, verification and validation) in place along with development of prototypes.

Changes/ Modifications in designs are proactive.

develops new designs to meet the specifications.

The process develop proto types, Conduct proto type/ in field testing, full-scale implementation, and final project delivery and validation.

Intensive Software are used for design development, simulation, testing and validation processes.

Takes IPR for designs.

E-1 Installation and commissioning

The procedures for installation and commissioning are not defined at all. There is no dedicated team for installation and commissioning. Members of the design and construction

The procedures for installation and commissioning are not defined properly. There is dedicated team for installation and commissioning. Members of the design and construction teams are introduced only at the last stages of

The procedures for installation and commissioning are defined in a normal way. A dedicated team has been formed for installation and commissioning. All members of the design and construction teams are

The procedures for installation and commissioning are well defined. A dedicated team has been formed for installation and commissioning. All members of the design and construction teams introduced from intermediate

The procedures for installation and commissioning are well defined. Commissioning is part of the project from the very start. A dedicated team has been formed for installation and commissioning. All members of the design and



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teams are not introduced at all. No system in place for key parameters documentation.

the project. No system in place for key parameters documentation.

introduced only at the last stages of the project. No system in place for key parameters documentation.

stages. Key parameters documentation is not taken seriously.

construction teams introduced from programming stage itself. System in place for key parameters documentation, organizing and preserving in the commissioning report.

E-2 Transportation and storage

Quality systems are not in place. Facilities not available for the storage of products under appropriate conditions. Products are not stored in appropriately safe and secure areas.

Quality systems are in place partially. Facilities are available for the storage of products under appropriate conditions but not up to the mark. . Products are not stored in appropriately safe and secure areas. . Packing and storage areas are not separated.

Quality systems are in place partially for ensuring products are consistently stored and handled. Facilities are partially available for the storage of products under appropriate conditions. Transporter does not know appropriate transport and storage conditions. Products are stored in reasonably safe and secure areas.

Quality systems are in place for ensuring products are consistently stored and handled. Facilities are available for the storage of products under appropriate conditions. Transporter partially knows and follows appropriate transport and storage conditions all the time. Products are stored in appropriately safe and secure areas. Packing and

Quality systems are in place for ensuring products are consistently stored and handled. Facilities are available for the storage of products under appropriate conditions. Transporter knows and follows appropriate transport and storage conditions all the time. Products are stored in appropriately safe and secure areas. Packaging is done properly. Tracing



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Tracing system is not in place to find the faulty products. Packing and storage areas are not separated.

storage areas are separated and, ideally, different personnel handle separate tasks.

system is in place to find the faulty products. Proper system in place to identify the batch that needs to be recalled if found defective. Packing and storage areas are separated and, ideally, different personnel handle separate tasks.

E-3 Customer Education for product usage & Maintenance

Company doesn't have a defined process for customer training and doesn't have a proper dedicated team for product demonstrations. Doesn't use any medium for customer training.

Company has defined processes partially. Company has team for product demonstrations and customer training but the team size is very small. Company does not give user manuals or anything to tell customer how to use the product.

Company has defined processes and teams for product demonstrations and customer training. Uses traditional mediums like user manuals for educating customers about proper usage of the product during its life cycle.

Company has defined processes and teams for product demonstrations and customer training. Gives video of product demonstration and even installation to customers for future usage. Uses other mediums also like white papers, eBooks and newsletters etc. But doesn't offer web-based technical

Company has a defined process for customer training. Have a dedicated team to give product demo to the customers at the time of delivery and installation. Gives video of product demonstration and even installation to customers for future usage. Develops user manuals which details about how to use the product without any difficulty. Uses



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programs to solve the customer pain points on real time basis.

technologies like webinars, white papers and eBooks, videos and trailers, e-learning courses and e-newsletter to highlight customer pain points and educate the customer. Company offers web-based technical programs that are 24x7 to solve the customer pain points.

E-4 Customer Servicing No defined plan and processes. Service to the customer is handled on a reactive basis. No initiatives in the direction of improving customer service.

Customer service standards are defined. But the visionary plan is developed an ad-hoc basis. Customers and top management are not involved in the plan. No defined specific goals with respect to customer service.

Customer service standards are defined both from customer and employee point of view. Developed a visionary plan and mission statement internally. Mission statement doesn't put customer in spotlight. Customer is not involved actively in development of

Customer service standards are defined both from customer and employee point of view. Developed a visionary plan with the involvement of customer, employees and top management. But visionary plan speaks about goals which does not powerfully

Customer service standards that are essential for business success are clearly defined from customers and employees point of views. Have a written plan for ensuring excellence in consumer service. Developed a mission and visionary plan that



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visionary plan. Visionary plan doesn't speak about the goals directed towards customer service.

speak in the direction of customer service.

stresses the importance of customer service. Mission statement puts customer in spotlight. Visionary plan is developed among all employees with leadership from CEO. Visionary plan has limited number of goals (not more than 5-7) that powerfully speak in the direction of customer service. Customer is involved in the development of the plan and it is continuously updated and adjusted as per the customer needs and expectations.

F-1 Technology selection & continual up-gradation

Environmental aspects of a process are not considered while developing technology or

Product development is carried out to take care of environmental hazards to the

Investment and operating costs are the main consideration in selecting the technology for a

Internally develop products and services considering different technologies with

Fully aware of different technologies for its product including ‘cleaner technologies’ and



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sourcing a process for the product.

extent possible and is not a priority.

product and environmental performance is also kept in view.

The organization creates an up-gradation plan over short/ medium term for environmental performance enhancement.

respect to environmental and sustainability impacts along with creating a long term plan and review process for continual improvement.

has the facility to innovate new technologies in order to further reduce environmental impact.

Continuous monitoring and review of the processes with respect to technological up-gradation and reduction in environmental impact.

F-2 Systems for abatement of effluent, emissions and wastes

No system of pro-active checking of compliance.

Reacts to complaints and fixes problems as they occur.

System in place for periodic checking of environmental compliance.

Only review working of control systems but no plans for up-gradation of technology to achieve better compliance.

Compliance to all environmental regulations in place through control mechanism.

Periodic reviews lead to up-gradation of technology from various sources

The organization identifies all potential sources of effluents, emissions, wastes beyond regulatory norms.

Mechanism for their monitoring, measurement and continual improvement are in place.

Regular environmental audits covering all aspects of the

The best available technologies for environmental compliance are fully integrated the process.

Systems are in place for periodic review and bring in state-of-the-art process and control technologies, where necessary.



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new standards are carried and technology is upgraded to meet the requirements.

F-3 Systems for energy efficiency

No or least focus on Energy Efficiency and Performance. Wastages, Rejections, Reworks, Supply Chain deviations and the process performance not linked to Energy.

High cost of Energy is viewed as a concern. Practices are defined for some energy segments irrespective of significance.

Energy efficiency ratings accorded preference in purchase if other factors, such as price are constant.

All potential areas for energy savings identified - practices defined, some of which are monitored.

Performance Effectiveness considers Energy as a factor.

People are sensitized and trained on energy conservation.

Clear focus on Energy Efficient Purchases.

Energy Use and Opportunities are classified for significance.

Energy baselines (targets) are based on past average or best performance, which are monitored and reviewed.

Energy metering is carried out for each segment independently.

Accountability to assure Energy Performance at all levels is established.

The organization has optimized all Facilities, Equipment, Systems and Processes for peak energy efficiency with baselines based on estimation of Energy Consumption.

Energy performance indicators are linked to Business Performance.

F-4 Systems for natural resource conservation

No consideration towards conservation of natural resources both in design and manufacturing of products.

A natural resource conservation policy developed, with a few ad-hoc low cost measures such as natural lighting, paper re-use, water wastage

The organization has identified the important areas of resource conservation such as ( as applicable) heat exchangers, solar water

The organization has identified the all areas of resource conservation

Has time targeted plans for implementation

Minimal use of natural resources in its processes is integral to the strategic objectives of the company

Processes



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prevention, water re-use, power factor enhancers etc.

Compliance to the policy is reviewed occasionally

heating / P V panels, investments in hydro / wind projects

Has drawn up plans for gradually use renewable resources, water recycling, plantation to make up for use of wood, if applicable

which are reviewed at top level

New products/ technologies/raw materials are considered to minimize the use of natural resources

including raw materials are continually reviewed to maximize conservation of natural resources

G-1 Installation of environmental protection and measuring equipment

Main stress on production plants. Plant & equipment for environmental protection not mapped. No system of measuring environmental discharges and compliance

Installation of selective environmental control equipment is taken up simultaneously with the production units. However, commissioning of production units not held up if control systems are not ready.

Necessary environmental control equipment, measuring devices and production units form the total package of the project.

Work taken up simultaneously on all items though the stress is for the production units.

Commissioning of the complex is proceeded with if key control devices are ready, without waiting for the balance

Installation of all production units and environmental control & measuring systems are completed before taking up commissioning activities.

Satisfactory dry trial runs of all units and systems are completed before commissioning of the complex

Environmental control systems backed by highly intelligent measurement systems are fully integrated with the production process and are in place prior to commissioning of the complex.



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control and measuring systems to be completed.

G-2 Installation of energy conservation and measuring equipment

No concept of energy saving equipment exists.

Installed Meters are either not working or not used for internal controls and inferences.

Some basic equipment such as power capacitors installed. Separate meters are installed in high energy consumption areas and logs maintained.

Variable Frequency Drives and Power capacitor banks installed to reduce energy consumption.

Some Energy Meters, Load Cells, Chilled water, TR Meters, are installed and used to derive daily Efficiencies. Vibration Monitoring, Signature Analysis, Thermography, Power Quality Control carried out.

All measuring equipments are calibrated.

All energy conservation and measuring equipment are under proper maintenance and calibration control with more than 95 % uptime.

Energy conservation and measuring equipment are an integral part of the highly controlled and efficient equipment maintenance and control programme of the organization

H-1 Planned maintenance of Environmental control systems

No regular system of maintenance of the environment control systems.

There is a periodic schedule of maintenance of the environment control systems

The organization has regular system of maintenance of the environment

Regular system of maintenance of the environment control systems in place including

Maintenance of the environment control systems are fully integrated with that of the



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Maintenance is taken up as and when required

which may not ensure regular availability of such systems synchronized with the operation of the production units.

control systems as per recommendations of the designers/manufacturers and implements the same.

predictive and preventive maintenance ensuring minimum downtime.

production units and their operation is integrated ensuring 100% availability

H-2 Planned maintenance of energy control systems

Maintenance is taken up as and when required

No regular system of maintenance

Partial periodic schedule of the maintenance of the energy control system is in place.

Only some equipment is available in full working condition

The organization has regular system of maintenance of the energy control systems as per recommendations of the designers/ manufacturers including preventive maintains and implements the same.

Regular system of maintenance of the energy control systems in place for predictive maintenance to ensure minimum downtime.

Maintenance of the energy control systems are fully integrated with that of the production units and their operation is integrated ensuring 100% availability

I -1 Design compliance with regulatory requirements

No linkage with environmental considerations while developing and designing a product

While the final product is designed to meet environmental regulatory requirements, environment considerations are not factored in the process of

Products are designed to meet environmental regulations and the process of developing the same is also kept environment friendly, to the extent possible

System in place integrating environmental regulatory requirements while designing and developing products

Proactive approach in developing environment friendly products using environment friendly raw materials meeting regulatory requirements and going beyond



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developing the same

I -2 Design for minimum Life Cycle Environmental impact

No concept or consideration for environmental impact in product design, its production, use to final disposal of product

Product design considers avoidance use of very hazardous substances or informative labeling regarding their presence and safe use.

Product design considers basic environmental impacts such as:

Energy consumption during use

Hazardous discharges from the process

GHG emissions during use

Hazards relating to disposal after use

Safe methods of use to final disposal

The organization gives information about the presence of hazardous substances in the product and the precautions for its use and disposal

Product design considers all elements of possible environmental impacts:

Depletion of biotic / abiotic resources

Loss of bio-diversity

Climate change Ozone depletion Human toxicity Eco-toxicity Others Safe methods of

use to final disposal

The organization takes the responsibility in designing the final disposal of products having residual hazardous waste.

The organization prepares a full life cycle report for each product with formal estimates of all possible environmental impact using databases and uses it for improving the design of products.

The organization takes the responsibility in designing and operating the final disposal of products having residual hazardous waste.

J -1 Disposal after use No instructions on environmentally safe disposal of its products after use

Only basic information on use, storage and safe disposal of its products after use

Detailed instructions on its use, storage and safe disposal mentioned on the

Complete information on safe disposal of its products after use printed on

As a policy reviews the potential negative impacts of its products after use and



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mentioned in packaging.

packaging. No initiative to educate the customers

packaging including in local languages. Takes up campaigns on public media to educate people, where improper disposal of its products after use may cause high environmental impacts

adopts state-of-the-art technology including use of alternate raw materials to reduce such impacts.

Takes steps as mentioned in previous column. Additionally, Creates system of taking back such products after use for safe disposal.

K -1 Plant layout Machines –equipment’s are laid out as per availability of space

There is no consideration of process flow as part of plant layout decisions.

This all results in wastage of space.

Wastes attributed to unplanned layout are identified. People are trained and teams are formed for improvements.

Efforts are to ensure layout conducive to straight material flow

Consideration for manpower effort and distance travelled by material is initiated.

Storage, ease of handling,

Layout considers flow from raw material receipt to dispatch point with straight line pathways.

layout of machines and equipment is done keeping with future requirements in consideration

Layout supports accessibility of machines from point of maintainability

Layout supports full

Visual management of total flow and plant layout exist

Space created for future expansion (wherever possible)

Environment benefits due to natural light and ventilation achieved

Reduction in material distance, time and manpower is measured and

Flexibility in machine re-layout

Regular monitoring of benefits of improved layout is done for PDCA



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utilization, of natural light and environmental considerations are part of layout.

segregation of material based on grades and types, rework, reject status on the shop floor

reviewed for continual improvement

K- 2 Storage system Storage activities seen only as transient point and storage points for material

Higher inventory levels are maintained to ensure there are no stock-outs.

Stores function is seen as part of materials management.

Materials management team analysis the demand consumption pattern to decide the stock levels

Activities between stores and purchase are synchronized

Segmentation of stores carried out based on hazardous nature, risk factors, shelf life and suitable environmental storage conditions.

Storage systems ensuring ease of handling, FIFO, Indexing and binning are in place.

The decided stock levels are maintained and reviewed to ensure reduction in inventory.

Based on the segmentation of stores the layout of store is decided.

Concept of de-centralization of stores with a view to minimize the non-value added activities is discussed and finalized.

Visual Management with color coding in place.

The reduction in inventory in various stages such as raw material , WIP, Finished good, spares and consumables and maintenance stores is measured and

The reduction in inventory has led to improved Inventory Turnover ratio consistently on year to year basis.

The Visual management ensures instant material irretrievability by anybody.



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reviewed for improvement

K-3 Material handling systems

Material handling systems are based on ad-hoc basis, habits and experiences

Material handling is predominantly manual

Not seen as activity that can improve productivity and quality

Material handling is taken as management focus area to reduce cost, eliminate movement related quality issues

Team organized to identify handling issues at Material receipt , Inspection/acceptance, Storage, Retrieval, Movement inside plant

Improvement goals and plans are made with the team after awareness training and participation

Quality defects /damages attributed to handling are identified and corrective actions taken

A logical and stream level flow in the goal

Work towards modular design

Material handling systems have been designed commensurate with products sensitivity and incidence of handling defectsBenefits are being measured in terms of :

Response and retrieval time

Productivity of inventory

Elimination of unnecessary operations

Maximized floor space utility

Security and safety

Good house keeping

Automatic/Robotic material handling system

Overall cost effectiveness is measured and achieved

Continual PDCA for sustaining and improvements

L -1 Internal skill development/ Multi-skilling

No concept of defining competencies for skills development.

People deployment takes

Skills training areprovided on an ad hocbasis. Recruitmentsbased on evaluation of

Skill-sets are defined for each process.

Formal internal training and development mechanisms in

Skills mapping, measurement, tracking and reporting in place, backed with plannedtraining and

The systems of competency development have matured to a level that the organization is able to link and



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place on perceived skills on ad-hoc basis.

basic competencies. Policies yet to be formulated.

place. coaching. People policies

ensure skills are also developed for future requirement.

Competencies extend to soft skills, environmental, safety, energy conservation areas.

correlate all key business performance indicators with the competency levels.

L- 2 External skill certification

Organization has not evaluated external skill certification requirements even where mandatory.

Mandatory skill certification is being done with some gaps.

Formal cycle for ensuring compliance to mandatory skill certification in place. Non certified persons are barred from undertaking work

Policy in place for hiring certified persons in voluntary areas.

Majority of new hiring is done based on external skill certification from accredited agencies

Policy in place to get internal persons certified through external accredited agencies.

All new hiring is done only based on external skill certification.

All company personal actively encouraged and supported to secure external certification wherever possible.

Company participates and wins awards / recognitions in national and international skills competition.

L-3 Employee involvement activity

No involvement of employees in decision making,

All administrative, financial approvals by top

Concerned managers. Consulted for

Business plans & performance shared with all

The entire organization operates in an



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improvement or change as all decisions are taken by top management and issued for compliance.

Blame game for errors evident all around coupled with disincentives

management. Decisions are explained to managers / supervisors.

Some Shop- floor level empowerment given to managers /supervisors

Production / quality targets discussed with second line managers.

Some incentives linked to production / sales targets.

Employees’ involvement in local area improvements such as clean work place.

Errors are investigated

Operational decisions

Empowerment up to supervisor level to take decisions to fulfill pre-agreed targets,

Incentives given on pre-agreed terms

Employee engagement programmes such as Kaizen / quality circles / suggestion schemes in place

Concept of team based working introduced.

employees. Targets at all levels

are drawn in consultative mode.

Employees consulted before all change management programmes.

Teams empowered to manage their work areas, with manager playing facilitators' role.

Job enrichment to inculcate self-esteem.

Incentives include non- financial rewards & recognitions

environment of complete trust, loyalty, pride of ownership, bonding transparency and common understanding of business needs.

Employee led innovations epitomize this culture.

M -1 Outsourced activities : Selection, control and improvement

No formal selection process in place to select vendors for out sourcing.

The organization gives jobbing

Some defined selection process but not followed effectively.

Outsourcing activities are clubbed with

The organization has an Outsourcing strategy that aids identifying areas for outsourcing

A formal selection

OSA is considered as Partners and evaluates the current processes to identify improvement opportunities such

The Organization has evolved a highly mature outsourcing strategy and implementation framework



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work to contractors, other organizations without any evaluation of skills and resources.

supplier evaluation programmes for purchase

The performance of only the key vendors is reviewed.

Some commitments/ rate contracts are in place

and evaluation process for vendors exists. Long term partnership, Joint working to meet specific requirements is in place.

Service level agreement is in place.

Periodic evaluation as per the evaluation process is done

as technology changes etc.

Joint research and development projects to meet present and future requirements.

Outsourcing arrangements involve frequent dialogue and collaborative discussions for product / service improvements and sharing of knowledge is done.

hallmarked by enhanced value add across all product lines, increased growth and profitability of all parties involved on a sustained basis

The strengths of outsourcing partners used for innovation in products.

Training programs are conducted to maintain the level of process awareness.

Value addition in terms of technology, process enhancement and competitiveness by knowledge sharing.

N-1 Trademark Don’t Know about IPRs, may violate intellectual property rights of others.

Knowledge about IPRs, is available

Trademark for the Industry registered

Trademark have been registered for the Industry and also for selected products.

Trademark is used as a branding tool at national level for the Industry / organization.

The company and the products are considered as national and international brands

N-2 Industrial Design Don’t Know about Knowledge about Some products are Almost all products All products are



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IPRs, and may be violating clauses on industrial design.

IPR clauses on Industrial Design, is available on one products

registered for industrial Design in the name of company.

are registered for industrial Design in the name of company.

registered for industrial Design in the name of company and enjoy market acceptability at national and international level

N-3 Copyright Don’t Know about IPRs, and may be violating clauses on Copyright.

Knowledge about IPR clauses on Copyright, is available on one product and process

Some products and process are registered for Copyrights in the name of company.

Almost all products and process are registered for Copyrights in the name of company.

All products and process are registered for Copyrights in the name of company. And enjoy market acceptability at national and international level

N-4 Patent Don’t Know about IPRs, and may violate clauses on patents.

Knowledge about IPRs, but not owned any patent, using old technology without legal Complexity.

Knowledge about IPRs, and owned 1-2 domestic patents for indigenous product /process /technology and using own technology without any legal Complexity.

Knowledge about IPRs, and owned 1-2 Domestic & international patents for indigenous product /process /technology and using international technology without any legal Complexity.

Knowledge about IPRs, and owned Domestic & international patents for all new innovative product /process /technology and using international technology without any legal Complexity.


Maturity MatrixOutcomes


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O -1 Outgoing (customer end) quality performance level / % improvement

Only inspection of outgoing product is done

Quality improvement are in reactive mode

Quality plan for outgoing product has been developed. Customer feedback is also analyzed.

Action plan for improvement is in place.

Feedback is analyzed for quality improvement across all projects.

% improvement up to 5%over previous year

In discrete manufacturing quality level is 500ppm or less and in process manufacturing quality level is 0.5% or less.

The improvement trend YOY up to 5% for last 3 years.

In discrete manufacturing quality level is 100ppm or less and in process manufacturing quality level is 0.1% or less.

O-2 In-house quality Stage inspection or final System for defect The actions have In discrete In discrete



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Level 4Achiever

Level 5World Class

performance level / % improvement

inspection only segregates conforming and non-conforming material

Systematic defect analysis system is not in place.

analysis and correction and corrective action plan have been developed and are in place.

Rejection and rework show a improvement over previous year.

resulted in improvement to the following levels

In discrete manufacturing quality level is 5000- 10000ppm levels and in process manufacturing quality level is 1-2%

manufacturing quality level is 2000ppm or less and in process manufacturing quality level is 1% or less.

The improvement trend YOY up to 5% for last 3 years.

manufacturing quality level is 500ppm or less and in process manufacturing quality level is 0.5% or less.

O-3 Field performance level / % improvement

Field complaints are frequent and no improvement seen in the last 3 years.

Field complaints are being tracked, analyzed and acted upon and show some improvement over last year.

Field complaints have reduced by 50%.



OrAre operating at level best in class.

P -1 Total Employee Involvement (TEI)

The company has no criteria for measuring TEI.

Company has identified measures for TEI such as

Number of suggestions/Kaizen per employee per year

Percentage of people involvement in SGA/Quality

More than 50% employees have participated in suggestions/ Kizen activity/QCC/SGA

The benefits of these various initiatives are directly related to quality, cost,


Unauthorized Absenteeism is measured and is less than 7%


Number of suggestions per employee is among the best in class.



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

circle Absenteeism rate

productivity and safety.

P -2 5 S implementation 5S initiative is not started and activities are restricted to cleaning the pathways and machines.

Red tag activity started and review on red tags put and remove is done.

5S is applied in manufacturing zones.

50% of the red tags are regularly removed. Number of red tags being put are also reviewed

The company has finalized measurable benefits accruing due to 5S

Self audit results are reviewed.

5S is applied in all areas of the organization.

Saving and benefits due to red tagging are regularly measured and linked to productivity and quality benefits

5S audit scores show continual improvement across all zones

5S audit scores have reached benchmark levels.

At least 5% reduction in inventory and oil consumption is attributed to 5S.

Factory is a cheerful working place.

P -3 Rolled throughput yield (RTY)

No concept of RTY The various parameters affecting RTY are being computed such as rejects and rework.

Action plan on parameters has resulted in improvement if RTY by 25%.

Action plan has resulted in improvement of RTY in the band of 50-60%.

RTY of 80% or benchmark level whichever is higher is achieved.

P -4 Process Capability (Cp/ Cpk)

No data of process capability is maintained.

Company has stared measuring (Cp/Cpk) values.

More than half of critical process (those which leads to product rejection at internal or customer end)

(Cpk) is best in class. Or exceeds 1.00 for all critical process

(Cpk) is best in class. Or exceeds 1.33 for all critical process.



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

operate at more than 1 Cpk level.

P -5 Operational Equipment Efficiency

Less than 30% 30-60% 60-65 % 65-85% >85 %

Q -1 Optimal use of natural resources

No data maintained Measurement of Natural Resource use parameters has commenced

As applicable, one or more of the following -

25 % conversion from fossil fuels to clean fuel

Apart from evaporation, 50 % water recycled

50% own plantation and no virgin forest is cut where wood is a consumable




Rain water harvesting and recharging of ground water is practiced

100% own plantation and no virgin forest is cut (where wood is a consumable)




Organization is water positive through rain water harvesting, recharging of ground water

Net positive contributor to plantation (where wood is a consumable)



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

Q -2 Energy performance Energy performance indicators are not fully defined

Important energy performance indicators are defined and monitored for compliance.

Sets yearly targets for reduction in specific energy consumptions and achieves these up to 50%

All energy performance indicators are monitored

Achieves 5% reduction over previous year in specific energy consumption for the products

Achieves over 5% and up to 10% reduction over previous year in specific energy consumption for the products

The organization is in top 10 percentile in energy consumption per unit of production of the relevant segment

Q -3 Environmental performance – air/effluent / solid wastes

Compliance of the environmental performance parameters are not monitored.

Critical environmental performance indicators are monitored occasionally

Compliance of the critical environmental performance parameters up to 75% of time

All environmental performance indicators are monitored regularly

Compliance of all environmental performance parameters up to 100 % of time

Achieves up to 5% beyond regulatory norms in environmental performance at all times.

Benchmarks against world class standards and has action plan to achieve the same.

Reviewed at board level to ensuring that the standards set are achieved within the targeted timeframe.

Q -4 Product Life Cycle Assessment (LCA)

The organization does not measure LCA tool and its impacts.

The organization has started measuring basic parameters of life cycle relating to in plant

Broad life cycle assessment have been carried out for 25% of its products

Life cycle assessment have been carried out for 50% of its products

Has Action Plan to

The organization adheres to ISO 14040

Life cycle assessment have been



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

operations. Action plan has

been formulated for measuring LCA.

improve the product life cycle score

The organization has started measurements in line with ISO 14040.

carried out for 100% of its products

R -1 Turnover growth Stagnant turnover. No growth or decline.

Growth over last year by 5%

Consistent Growth YOY 5% and more over last 3 years.


And Consistently

above sector average in the last 3 years

Or Consistent

increase in market share in the last 3 years.


And Consistently

above sector average by 10% or more in the last 3 years

Or Consistent

increase in market share in the last 3 years.

R -2 Operating profit/ % improvement (Measured as Gross Profit)

Stagnant Operating Profit. No improvement.

Operating Profit Growth over last year by 5%.

Consistent operating Profit Growth YOY 5% and more over last 3 years.

Consistent operation Profit Growth YOY 10% and more over last 3 years.

Best in class in that segment at regional level.

Consistent Operating Profit Growth YOY 15% and more over last 3 years.

Best in the class in that segment at national level.

R -3 Safety Score Measurement of safety parameter such as man-hours lost , near

10 % decrease in man-hours lost due to accidents

No fatal accidents or disabilities in the

No fatality over last 3 years

Man-hour lost due

No fatality or permanent disability over



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

misses, disability and fatality is not being done

wrt to last year. Action on all

accidents reported have been taken and implemented

last 1 year. 20 % decrease in

man-hours lost due to accidents wrt to last year.

Action on all near misses reported have been taken and implemented

to industry accidents is less than 0.1%.

last 3 years Zero hour lost

due to industry accidents

R -4 Customer feedback – (common scale to be created to facilitate comparative performance)

Customer feedback is not related to supplier-rating

Supplier-ratings are taken as customer feedback for improving the product and all ratings are positive.

Customer feedback rating improved by 5% over previous year in the following parameters

product performance

delivery performance

Customer feedback rating improved by 10% YOY over previous 2 years in the following parameters

product performance


Responsiveness Technical

competenceOr

All rating are above 80% measured on a 5 point scale

Customer feedback rating improved by 10% YOY over previous 3 years in the following parameters

product performance


Responsiveness Technical

competenceOr

All rating are above 90% measured on a 5 point scale

R -5 Inventory turnover (ITR)

ITR is not measured. ITR is a part of current asset management for review and continual

Consistent improvement of ITR in last 3 years

Consistent improvement in ITR YOY by 10% and more over last 3 years.

ITR is within 10% of the best in class in similar industry



Level 2Beginner

Level 3Organized

Level 4Achiever

Level 5World Class

reduction is measured.

ITR has improved since last year.

Consistently above sector average in the last 3 years


zed maturity model

Engineering