WCM - basics - Class1

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<p>World Class ManufacturingMayuresh Unde 13th Nov, 2010Unde.mayuresh@gmail.com</p> <p>An Historical Perspective3 periods of Economic evolution:</p> <p>1. Agricultural Age 8000 BC to mid-18th century Driven by physical labor Key resources of wealth were land and natural sources 2. Industrial Age lasted till the late 20th century ( more pre-dominant during 1960 to 1980) Driven by machines &amp; blue collar workers Wealth generation was more by capital than land Led of increased effectiveness &amp; efficiencies3. Information Age started somewhere during the 1970 and is getting more advanced day by day Driven by Information Technology &amp; Knowledge workforce Knowledge displaced capital as the scarce resource &amp; information became the strategic resource</p> <p>Business Challenges of Information AgeManaging Uncertainty</p> <p> Fluctuating demand Irregular supply Predicting change</p> <p>Understanding Customers</p> <p> Understand needs Translating those into products or services Apply Information technology to the entire process</p> <p>Understanding Globalization</p> <p> IT has broken down barriers Small agile firms competing with large giants Intense competition</p> <p>Operating Environment of Information AgeBusiness process integration Link to customers &amp; suppliers</p> <p>Knowledge workers</p> <p>Managing innovation</p> <p>Customer segmentati on</p> <p>Global Scale</p> <p>Current Situationsome numbers!Todays manufacturers are faced with a volatile economy, intense competition and rising energy/material costs.Unable to meet market demands; 9% Need to improve reputation / brand value; 4%</p> <p>Top Market Pressures</p> <p>Regulatory Compliance (FDA, EPA, OSHA, EU); 10% Global competition from low cost sources; 15%</p> <p>Minimize expected cost of adverse events affecting health &amp; safety; 3%</p> <p>Increase in costs, year over year25</p> <p>20 Need to reduce operating costs; 38%</p> <p>15</p> <p>Need to reduce risk of noncompliance in operations; 21%</p> <p>10</p> <p>5</p> <p>0</p> <p>One of the top market pressures, at nearly 40% is to reduce</p> <p>operating costsSource: Complied from multiple analyst reports</p> <p>Factors contributing for higher operating costsQuality issues and resulting in higher reworks, rejects, &amp; customer complaints Higher inventory holding cost, inventory movement cost, capital lockdown</p> <p>Unplanned machine breakdowns leading to missed delivery dates</p> <p>Loss of TargetsToo much spoilage or scraps resulting in excessive production to complete targets</p> <p>Unplanned Hot orders</p> <p>Poor planning resulting in unplanned order execution leading to loss of customer dates</p> <p>Non-value added activities, viz. material movement, setup times etc</p> <p>Higher throughput times</p> <p>Time wasted in finding information from tons of data</p> <p>A growing need for embarking the World Class Manufacturing journey</p> <p>World Class ManufacturingWorld Class Manufacturing is defined as a continuous improvement manufacturing philosophy or ideology to constantly seek opportunities for improvement in key competitive areas as</p> <p>quality, cost, delivery, flexibility &amp; innovation.</p> <p>WCM definitionsWorld Class Manufacturing is the goal of achieving &amp; sustaining world-class competitiveness through manufacturing excellence, attained through best practices</p> <p>Different views of different experts about WCM: 1. Goal of Continual improvement in quality, cost, lead time &amp; customer service Schonberger 1986 2. Its about excellence in inventory turnovers, quality defects &amp; lead times Gunn 1987 3. It focuses on product quality, JIT techniques, workforce management &amp; flexibility in managing customer needs Maskell 1991 4. WCM is about 3 core strategies customer focus, product quality and agility Kinni 1996 5. 6. </p> <p>WCM Status</p> <p>Global EXPORTERS</p> <p>WORLD CLASS MANUFACTURERS</p> <p>Markets</p> <p>Local</p> <p>DOMESTIC</p> <p>MULTI-NATIONAL PLAYERS</p> <p>Local Competitors</p> <p>Global</p> <p>Key Strategic IssuesWorld Class Manufacturers need to be able to address effectively several key strategic issues: 1. Cost-quality enhancement through Continuous improvement programs 2. Cost-quality improvement through concurrent engineering 3. The order cycle 4. After sales customer support 5. The design cycle 6. Globally coordinated flexible manufacturing 7. Globally coordinated R &amp; D</p> <p>Traditional View of Manufacturing Key objective was to fully utilize capacity so that more products were produced by fewer workers and machines How? With large queues of in-process inventory waiting at work centers Workers and machines never had to wait for product to work on, so capacity utilization was high and production costs were low Result: Products spent most of their time in manufacturing just waiting, leading to high through-put times, an arrangement that is unacceptable in todays time-based competition</p> <p>Mass Production Vs WCMCritical Control Points Logistics Mass production World Class Manufacturing</p> <p>Large batch production Single Unit flow production Just-in-case inventories Specialized Machinery Just-in-time inventories Flexible Machinery and rapid machine changeover Quality at source and at each stage of the production process Multi-tasking &amp; Multiskilling</p> <p>Quality</p> <p>End of line Inspection &amp; reworks Division of labor between skilled and unskilled workers</p> <p>Work Organization</p> <p>WCM PrinciplesElimination of Waste and continuous improvement of productivity Continuous Improvement of quality in processes, products, services and the overall organization culture</p> <p>Lean / JIT</p> <p>Total Quality Control</p> <p>Preventive Maintenance with continuous efforts to increase the adaptability, flexibility of equipments</p> <p>Total Productive Maintenance</p> <p>Computer Integrated Manufacturing</p> <p>Integration of the operations from design, production, &amp; distribution through the use of computer and information technologies</p> <p>Halls framework of Value Added Engineering Right materials, Right parts and products, Right Place Right time</p> <p>JIT Manufacturing Begin with the customer Measure &amp; track quality Quality at source Standardization Root cause analysis to avoid recurrence</p> <p> Broad perspective Problem solving atmosphere Employment security Performance measurement</p> <p>Total People Involvement</p> <p>Total Quality Control</p> <p>Maskells Model of World Class Manufacturing1. Focus on root cause analysis 2. Operator responsibility (pride of ownership 1. Shop floor layout for material movement reduction 2. Set-up time reduction 3. Production Synchronization 4. Strategic supplier relationshipsJIT techniques</p> <p>Product Quality</p> <p>Flexibility to 1. Production requirement flexibility (short lead times, product mix) 2. Design flexibility (time to market)</p> <p>Workforce Management</p> <p>1. Transfer of responsibility 2. Education &amp; cross-training 3. Problem solving &amp; quality circles</p> <p>Kaizen Incremental Improvement The Kaizen philosophy is drawn from the Japanese word kai which means continuous and zen meaning improvement or wisdom. The Kaizen management philosophy, therefore, is defined as making continuous improvementslow, incremental but constant. Kaizen Events are when work groups set aside a few day or up to a week to simplify a process or work area - eliminating waste, creating space.</p> <p>Innovation Improvement</p> <p>PDCA Cycle (Shewhart Cycle)1. 2. 3. 4. Collecting data Problem definition Stating the goal Solving the problem 1. Implementation of the Plan 2. Results recorded</p> <p>1. Act on the results 2. Change if unsuccessful 3. Improve on results</p> <p>1. Data collected gets analyzed 2. Side effects or adverse consequences noted</p> <p>Continuous Improvement ProgramsSystem for workplace organization (5S Methodology)</p> <p>Poka-yoke techniques</p> <p>Single Minute exchange of dies</p> <p>Principles of Motion study and material handling</p> <p>Continuous Flow Manufacturing</p> <p>Visual Factory</p> <p>Statistical Process Control</p> <p>Process Capability Studies</p> <p>Six Sigma (DMAIC)</p> <p>Other Techniques1. Value Analysis / Value Engineering: are techniques for assessing the Value content of the elements of a product or process. Value is what the customers are willing to pay for something. VA is generally used for continuous improvement in processes, while VE refers to design and engineering of a product or process.</p> <p>2. Five Why Process: The intent of this procedure is to reach to the root cause of any issue (quality non-conformance, deviation, adverse event etc.) The real problem is often far afield from the problem as initially perceived, and answering each why requires considerable &amp; thoughtful analysis.</p> <p>5 Whys?????Machine abruptly stopped??</p> <p>Why did machine stop? Fuse blew Why did fuse blow? It overheated</p> <p>Therefore?</p> <p>Why did it overheat? Machine shaft was worn and rubbingWhy was shaft worn and rubbing? Insufficient lubrication from the oil pump Why was there insufficient lubrication from the oil pump? Shavings were getting into the oil pump inlet, where there was no strainer</p> <p>Benefits of WCM% Reduction 80 70 60 50 40 30 20 10 0</p> <p>World Class Manufacturing Traditional</p>