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Control
Problems
in Manufacturing
Proceedigs
15th
Symposium
Proceedigs
of the
theOttawa,
15th IFAC
IFAC
Symposium on
on
May
11-13, 2015.
Canada
Information
Control
Problems
in Manufacturing
Manufacturing
Proceedigs
of
the 15th
IFAC Symposium
on
Information
Control
Problems
in
Available
online at www.sciencedirect.com
May
Ottawa,
Canada
Information
Control
Problems
in Manufacturing
May 11-13,
11-13, 2015.
2015.
Ottawa,
Canada
May 11-13, 2015. Ottawa, Canada

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Optimization of Manufacturing
System
through
World Class Manufacturing
IFAC-PapersOnLine
48-3 (2015)
741746
Optimization
of
Manufacturing
System
through
Optimization of Manufacturing System through World
World Class
Class Manufacturing
Manufacturing
Optimization of ManufacturingF. System
World Class Manufacturing
De Felice*.through
A. Petrillo**

F.
F. De
De Felice*.
Felice*. A.
A. Petrillo**
Petrillo**
F. De Felice*.
A. Petrillo**
*University of Cassino and Southern Lazio, Cassino, Italy
defelice@unicas.it
*University of
of Cassino
Cassino
and Southern
Southern Lazio,
Lazio, Cassino,
Cassino, Italy
Italy
*University
and
**University
of Naples
Napoli,
ItalyItaly
*University
of Cassino
and Parthenope,
Southern Lazio,
Cassino,
defelice@unicas.it
defelice@unicas.it
antonella.petrillo@uniparthenope.it
defelice@unicas.it
**University
of Naples
Naples
Parthenope, Napoli,
Napoli, Italy
Italy
**University
of
Parthenope,
**University
of
Naples
Parthenope, Napoli, Italy
antonella.petrillo@uniparthenope.it
antonella.petrillo@uniparthenope.it
antonella.petrillo@uniparthenope.it

Abstract: Each company struggles with the same question: How can I provide at the lowest possible
costs and with
acceptable
delivery
products
or How
services
add maximum
value possible
for my
Abstract:
Each an
company
struggles
withtime
the same
same
question:
How
can that
provide
at the
the lowest
lowest
possible
Abstract:
Each
company
struggles
with
the
question:
can
II provide
at
customers?
Firms
must
develop
strategic
objectives
which
result
in
a
competitive
advantage
in
the
market
Abstract:
Each
company
struggles
with
the
same
question:
How
can
I
provide

at
the
lowest
possible
costs
and
with
an
acceptable
delivery
time

products
or
services
that
add
maximum
value
for
my
costs and with an acceptable delivery time products or services that add maximum value for
my
place.
There
are
many
different
methods
which
address
this
problem:
Lean
(the
value
adding
costs
and
with
an
acceptable
delivery
time

products
or
services
that
add
maximum
for
my
customers?
Firms
must
develop
strategic
objectives
which
result
in
a
competitive
advantage
in
the
market
customers? Firms must develop strategic objectives which result in a competitive advantage in the market
organization),
Six
Sigma
(the
perfect
organization),
TOC
(the
unlimited
organization),
TPMvalue
customers?
Firms
develop
strategic
objectives
result
in a problem:
competitive
advantage
in(the
the smooth
market
place.
There
are must
many
different
methods
whichwhich
address
this
problem:
Lean
(the
value
adding
place.
There
are
many
different
methods
which
address
this
Lean
(the
adding
organization),
RCM
(the(the
reliable
and
QRM
(the
organization).
In
place.
There Six
are
many
different
methods
which
address
this cellular
problem:
Lean (the
adding
Six
Sigma
(the
perfectorganization)
organization),
TOC
(the unlimited
unlimited
organization),
TPMvalue
(theaddition,
smooth
organization),
Sigma
perfect
organization),
TOC
(the
organization),
TPM
(the
smooth
combinations of
these
methods
exist,
like Lean Six
Sigma
(value
and
perfect TPM
organization)
and
organization),
Six
Sigma
(the
perfect
organization),
TOC
(the
unlimited
organization),
(theaddition,
smooth
RCM
(the
reliable
organization)
and
QRM
(the adding
cellular
organization).
In
addition,
organization),
RCM
(the
reliable
organization)
and
QRM
(the
cellular
organization).
In
World
Class
(value
adding
and
perfect
and
smooth
organization).
The
aim
of
this
work
is
to
present
organization),
RCM
(the
reliable
organization)
and
QRM
(the
cellular
organization).
In
addition,
combinations of
of these
these methods
methods exist,
exist, like
like Lean
Lean Six
Six Sigma
Sigma (value
(value adding
adding and
and perfect
perfect organization)
organization) and
and
combinations
establishments
theadding
basic
model
of WCM
forsmooth
the
system
inThe
the aim
automotive
to
combinations
ofofthese
methods
likeand
Lean
Sixlogistics
Sigma
(value adding
andof
organization)
and
World
Class (value
(value
adding
and exist,
perfect
and
smooth
organization).
The
aim
ofperfect
this industry
work
is in
to order
present
World
Class
and
perfect
organization).
this
work
is
to
present
improve
the
work
standards.
The
result
of
this
research
was
to
develop
principles
on
strategic
objectives,
World
Class
(value
adding
and
perfect
and
smooth
organization).
The
aim
of
this
work
is
to
present
establishments
of
the
basic
model
of
WCM
for
the
logistics
system
in
the
automotive
industry
in
order
to
establishments of the basic model of WCM for the logistics system in the automotive industry in order to
performance
measurement
systems
and
performance
measurement
system
linkages
for objectives,
establishments
of the
basic model
of WCM
forresearch
the logistics
system
in the
automotive
industry
inimproved
order to
improve
the work
work
standards.
The result
result
of this
this
research
was
to develop
develop
principles
on strategic
strategic
objectives,
improve
the
standards.
The
of
was
to
principles
on
organizational
coordination.
improve
the
work
standards.
The
result
of
this
research
was
to
develop
principles
on
strategic
objectives,
performance
measurement
systems
and
performance
measurement
system
linkages
for
improved
performance measurement systems and performance measurement system linkages for improved
performance
organizationalmeasurement
coordination. systems and performance measurement system linkages for improved
organizational
coordination.
2015, IFAC
(International
Federation ofcontrol
Automatic
Control)
Hosting by Elsevier
Ltd.optimization.
All rights reserved.
Keywords:
World
class manufacturing,
processes,
measurement,
efficiency,
organizational
coordination.
Keywords:
measurement,
Keywords: World
World class
class manufacturing,
manufacturing, control
control processes,
processes,
measurement, efficiency,
efficiency, optimization.
optimization.

Keywords: World class manufacturing, control processes,

measurement, efficiency, optimization.
manufacturing organizations need to adopt WCM for an

1. INTRODUCTION
national
effect. Approaches
establishing
a creative

manufacturing
organizations
to
WCM
for
manufacturing
organizationsto need
need
to adopt
adopt
WCM climate
for an
an
1. INTRODUCTION
INTRODUCTION
1.
to
facilitate
adoption
of
WCM
are
discussed
(Kangis
manufacturing
organizations
need
to
adopt
WCM
for and
an
national
effect.
Approaches
to
establishing
a
creative
climate
Global
competition
has
caused
fundamental
changes
in
the
national effect. Approaches to establishing a creative climate
1. INTRODUCTION
Williams,
2000;
Chan,
2002).
Use
of
these
techniques
should
national
effect.
Approaches
to
establishing
a
creative
climate
to
facilitate
adoption
of
WCM
are
discussed
(Kangis
and
competitive
environment
of
manufacturing
industries
Global competition
competition has
has caused
caused fundamental
fundamental changes
changes in
in the
the to facilitate adoption of WCM are discussed (Kangis and
Global
enable
the2000;
remainder
ofWCM
manufacturing
organizations
to
facilitate
adoption
discussed
(Kangis
and
Williams,
Chan,
2002).
Use
of
techniques
should
(Bruzzone
andenvironment
Longo,
companieschanges
would
like
to to
Global
competition
has2010).
caused
fundamental
in the
competitive
of
manufacturing
industries
Williams,
2000;
Chan, of
2002).
Useare
of these
these
techniques
should
competitive
environment
ofMost
manufacturing
industries
replicate
success
ofof
progressive
firms thatshould
have
Williams,
2000;
Chan, 2002).
Use
of these techniques
enable the
thethe
remainder
of the
manufacturing
organizations
to
find
the
formula
for
the
ultimate
productivity
improvement
competitive
environment
of
manufacturing
industries
(Bruzzone
and
Longo,
2010).
Most
companies
would
like
to
enable
remainder
manufacturing
organizations
to
(Bruzzone and Longo, 2010). Most companies would like to
adopted
WCM.
Definitely
and
in any case
enable
manufacturing
organizations
to
replicatethe
theremainder
success
ofof the
the
progressive
firmsWorld-class
that have
have
strategy.
Thus,
environment
firms
must
be
able
to
respond
(Bruzzone
and
Longo,
2010).
Most
companies
would
like
to
find
the
formula
for
the
ultimate
productivity
improvement
replicate
the
success
of
progressive
firms
that
find the formula for the ultimate productivity improvement
manufacturing
has
attracted
the
attention
of
industries
all
replicate
the
success
of
the
progressive
firms
that
have
adopted
WCM.
Definitely
and
in
any
case
World-class
quickly
customer
in order
to
regain
dominance
find
the toformula
forneeds
the ultimate
improvement
strategy.
Thus,
environment
firms
must
be
able
to
WCM. Definitely and in any case World-class
strategy.
Thus,
environment
firmsproductivity
must
be their
able
to respond
respond adopted
over the WCM.
world.has
This
paper and
aimsattention
develop
and
validate
adopted
Definitely
into any
case
World-class
manufacturing
attracted
the
of
all
as
a
major
producer
of
high
quality,
price
competitive
goods
strategy.
Thus,
environment
firms
must
be
able
to
respond
quickly
to
customer
needs
in
order
to
regain
their
dominance
manufacturing
has
attracted
the
attention
of industries
industries
all
quickly to customer needs in order to regain their dominance
performance
measures
for
world
class
manufacturing
(WCM)
manufacturing
has
attracted
the
attention
of
industries
all
over
the
world.
This
paper
aims
to
develop
and
validate
(Black,
2002).
Innovation
is
a
necessary
process
for
the
quickly
to
customer
needs
in
order
to
regain
their
dominance
as
a
major
producer
of
high
quality,
price
competitive
goods
over
the
world.
This
paper
aims
to
develop
and
validate
as a major producer of high quality, price competitive goods
in
Italian
context
that
could
be
used
by
managers/
over
the
world.
This
paper
aims
to
develop
and
validate
performance
measures
for
world
class
manufacturing
(WCM)
continuous
changes
in
order
to
contribute
to
the
economic
as
a
major
producer
of
high
quality,
price
competitive
goods
(Black, 2002).
2002). Innovation
Innovation is
is aa necessary
necessary process
process for
for the
the performance measures for world class manufacturing (WCM)
(Black,
practitioners
in assessing
and class
improving
theirmanagers/
logistics
measures
for world
(WCM)
in
that
could
be
used
growth
in2002).
the
manufacturing
especially
compete
(Black,
Innovation
necessary
process
for the performance
continuous
changes
in order
orderisindustry,
toa contribute
contribute
to
thetoeconomic
economic
in Italian
Italian context
context
that
could
be manufacturing
used by
by
managers/
continuous
changes
in
to
to
the
performance.
The
validated
results
are
in
Italian
context,
in
Italian
context
that
could
be
used
by
managers/
practitioners
in
assessing
and
improving
their
logistics
in
the
global
market
(De
Felice
and
Petrillo,
2013
a;
Longo,
continuous
changes
in
order
to
contribute
to
the
economic
growth
in
the
manufacturing
industry,
especially
to
compete
in assessing and improving their logistics
growth in the manufacturing industry, especially to compete practitioners
however,
the in
instrument
developed
can
be Italian
used
global
practitioners
assessing
and
improving
their inlogistics
performance.
The
validated
results
are in
context,
2011).
In
addition
to(De
innovation
aespecially
mode2013
fortocontinued
growth
in the
manufacturing
industry,
in
market
Felice
and
a;
Longo,
in the
the global
global
market
(De
Felice
andasPetrillo,
Petrillo,
2013
a;compete
Longo, performance. The validated results are in Italian context,
context.
The
paper
is
structured
as
follows:
Section
performance.
The
validated
results
are
in
Italian
context,
however, the
the instrument
instrument developed
developed can
can be
be used
used in
in global
global2
growth
andaddition
change,
there
are many
vehicles
growth however,
in
the global
marketto
(De
Felice
andas
Petrillo,
2013
a; Longo,
2011).
In
innovation
aa mode
for
continued
2011).
In
addition
to
innovation
asother
mode
for for
continued
analyzes
basic
concept
of
the
world
class
manufacturing
however,
the
instrument
developed
can
be
used
in
global2
context.
The
paper
is
structured
as
follows:
Section
in
the In
manufacturing
industry
2005).
One
in context. The paper is structured as follows: Section
2011).
addition
innovation
asother
a mode
for for
continued
growth
and
change,
there
are
vehicles
growth
2
growth
and
change, to
there
are many
many(Monsey,
other
vehicles
for
growth
system;
Section
3
presents
a
real
case
study
and
finally
context.
The
paper
is
structured
as
follows:
Section
2
analyzes
basic
concept
of
the
world
class
manufacturing
particular
that
has
been
gaining
momentum
is
the
idea
of
growth
and
change,
there
are
many
other
vehicles
for
growth
in
the
manufacturing
industry
(Monsey,
2005).
One
in
analyzes
basic
concept
of
the
world
class
manufacturing
in the manufacturing industry (Monsey, 2005). One in
section
4
analyzes
results
and
conclusions.
analyzes
basic
concept
of
the
world
class
manufacturing
system;
Section
3
presents
a
real
case
study
and
finally
World
developed
by R.2005).
J.is
in
the Class
manufacturing
(Monsey,
in system; Section 3 presents a real case study and finally
particular
that
has
gaining
momentum
the
idea
particular
thatManufacturing
has been
beenindustry
gaining
momentum
is Schonberger
the One
idea of
of
system;4
presents
a real case study and finally
analyzes
and
(in
80s)
(Schonberger,
1986).
World
Class
particular
that
has
been gaining
momentum
the idea
of section
WorldtheClass
Class
Manufacturing
developed
by In
R. J.
J.is
Schonberger
section
4 Section
analyzes3results
results
and conclusions.
conclusions.
World
Manufacturing
developed
by
R.
Schonberger
section
4
analyzes
results
and
conclusions.
2.
WORLD
CLASS
MANUFACTURING
SYSTEM
Manufacturing
the
focus
is
on
continuous
improvement.
As
World
Class
Manufacturing
developed
by
R.
J.
Schonberger
(in the
the 80s)
80s) (Schonberger,
(Schonberger, 1986).
1986). In
In World
World Class
Class
(in
2.
WORLD
CLASS
MANUFACTURING
SYSTEM
organizations
adopt
world
class
manufacturing,
they
need
(in
the
80s)
(Schonberger,
1986).
In
World
Class
Manufacturing
the
focus
is
on
continuous
improvement.
As
MANUFACTURING
Manufacturing the focus is on continuous improvement. As 2.
A WORLD
review ofCLASS
literature
reveals that there SYSTEM
is no universally
2.
WORLD
CLASS
MANUFACTURING
SYSTEM
new
methods
of
performance
measurement
to
check
their
Manufacturing
the
focus
is
on
continuous
improvement.
As
organizations
adopt
world
class
manufacturing,
they
need
organizations adopt world class manufacturing, they need A
recognized
definition
of
world
class
manufacturing
(Kodali et
review
of
literature
reveals
that
there
is no
no universally
universally
continuous
improvement
Felice
and Petrillo
2013need
b). A review of literature reveals that there is
organizations
adopt
world(De
class
manufacturing,
they
new
of
measurement
to
their
new methods
methods
of performance
performance
measurement
to check
check
their
al.,
2004).of
Schonberger
coined
term
World
Class
A
review
literature
reveals
thatthe
there
is no
universally
recognized
definition
of
world
class
manufacturing
(Kodali
et
recognized
definition
of
world
class
manufacturing
(Kodali
et
Traditional
performance
measurement
systems
not
new
methods
of performance
measurement
toare
check
their
continuous
improvement
(De
and
Petrillo
2013
b).
continuous
improvement
(De Felice
Felice
and
Petrillo
2013valid
b). recognized
Manufacturing
to
cover
the
many
techniques
and
definition
of
world
class
manufacturing
(Kodali
et
al.,
2004).
Schonberger
coined
the
term
World
Class
al.,
2004).
Schonberger
coined
the
term
World
Class
for
the measurement
of world
practices
continuous
improvement
(De class
Felicemanufacturing
and
Petrillo
2013
b).
Traditional
performance
measurement
systems
are
valid
Traditional
performance
measurement
systems
are not
not
valid
technologies
designed
to
enable
a
company
to
match
its
best
al.,
2004).
Schonberger
coined
the
term
World
Class
Manufacturing to
to cover
cover the
the many
many techniques
techniques and
and
as
are performance
based onof
traditional
cost are
management
Traditional
measurement
systems
not
valid Manufacturing
for
the
world
class
manufacturing
practices
for they
the measurement
measurement
ofoutdated
world
class
manufacturing
practices
competitors.
Schonberger
defined
analogous
tobest
the
Manufacturing
to cover
theaa WCM
manyas techniques
and
technologies
designed
to
enable
company
to
match
its
technologies
designed
to
enable
company
to
match
its
best
systems,
lagging
metrics,
not
related
to
corporate
strategy,
for
the
measurement
of
world
class
manufacturing
practices
as they
they are
are based
based on
on outdated
outdated traditional
traditional cost
cost management
management Olympic Games motto citius, altius, fortius, which
as
technologies
designed
to
enable
a
company
to
match
its
best
competitors.
Schonberger
defined
WCM
as
analogous
to
Schonberger defined WCM as analogous to the
the
inflexible,
expensive
contradict
continuous
as
they are
basedmetrics,
onand
outdated
traditional
costimprovement.
management
systems,
lagging
metrics,
not related
related
to corporate
corporate
strategy, competitors.
systems,
lagging
not
to
strategy,
translates
to
faster,
higher,
andWCM
stronger.
Similarly,
its
competitors.
Schonberger
defined
as analogous
to the
Olympic
Games
motto

altius,
fortius,
which
Olympic Games
motto
citius,
citius,
altius,
fortius,
which
World
Class
Manufacturing
(WCM)
is
a
concept
which
has
systems,
lagging
metrics,
not
related
to
corporate
strategy,
inflexible,
expensive
and
contradict
continuous
improvement.
inflexible, expensive and contradict continuous improvement. Olympic
equivalent,
as
applicable
to
WCM,
is
continual
and
rapid
Games
motto

citius,
altius,
fortius,
which
translates
to
faster,
higher,
and
stronger.
Similarly,
translates to faster, higher, and stronger. Similarly, its
its
proven
effective
in regaining
competitive
Several
inflexible,
expensive
and contradict
continuous
improvement.
World
Manufacturing
(WCM)
is
concept
which
has
World Class
Class
Manufacturing
(WCM)
is aa edge.
concept
whichfirms
has translates
improvement.
Performance
should
therefore
higher,
and stronger.
Similarly,
its
equivalent,
applicable
to
WCM,
is
and
rapid
equivalent, toas
as faster,
applicable
to measurements
WCM,
is continual
continual
and
rapid
have
adopted
the
approach.
However,
the
majority
of
World
Class
Manufacturing
(WCM)
is
a
concept
which
has
proven
effective
in
regaining
competitive
edge.
Several
firms
proven effective in regaining competitive edge. Several firms equivalent,
as Performance
applicable to measurements
WCM, is continual
and
rapid
improvement.
Performance
measurements
should
therefore
improvement.
should
therefore
provenadopted
effectivethe
in regaining
firms
have
approach.
However,
the
majority
of
have
adopted
the
approach.competitive
However,edge.
the Several
majority
of improvement. Performance measurements should therefore
Copyright
2015 IFAC
have adopted
the approach. However, the majority of 774
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activate continuous improvement (Digalwar et Metri, 2005).

As organizations adopt world class manufacturing, they need
new method of performance measurement to check the
continuous improvement (Francisco et al., 2003; Gosselin,
2005). To know the world class performance, measurement is
important because if you cant measure it, you cant manage
it and thus you cant improve upon. This concept is a
strategic vision of how a firms productive resources relate to
one another and to the environment. While there is no
generally accepted definition of the WCM vision, several
have been proposed depending on the nature of the firm.
Companies attempting to adopt WCM have developed a
statement of corporate philosophy or mission to which
operating objectives are closely tied (Nandi and Banwet,
2000). One of the most comprehensive definitions of WCM
has been set forth by Gunn (1987). His approach suggests
that the achievement of world class manufacturing involves
continual interaction with customers, suppliers and the
integration of total quality control (TQC), computer
integrated manufacturing (CIM), and just-in-time production
(JIT). A sustained organizational framework is an essential
prerequisite for progressing perfection. Achieving the zero
state, and even progressing towards it, calls for a great deal
more than just initiating studies and redesigning factory
layouts. It demands a radical change in mindsets. From this
literature survey it has been inferred that it is not possible to
use the specific single tool to achieve world-class
performance and address all the manufacturing components
(Nachiappan and Anantharaman. 2006). However there are
10 tools which are being suggested by different authors to get
the world-class status: 1) Total Productive Maintenance
(TPM); 2) Lean Manufacturing (LM); 3) Six Sigma (SS); 4)
Benchmarking (BM); 5) Total Quality Management (TQM);
6) Integrated Information System (IIS); 7) Agile
Manufacturing (AM); 8) Manufacturing Strategy (MS); 9)
Supplier Relationship Management (SRM) and 10) Cellular
Flow Manufacturing (CFM). Based on the literature review, a
tentative list of performance measures of world class
manufacturing was developed. Main principles of WCM are:
1) Dedication to Quality: Absolute focus on satisfying the
customer with increased responsiveness, high reliability and
high quality; 2) Employee Involvement: Motivating and
treating employees like appreciating assets; 3) Measurement:
All decisions to be made based on objective measured data
and its analysis; 4) Continuous Improvement: Having a
culture of continuous improvement by doing more with less,
eliminating waste, reducing lead time and 5) Achieving
growth in top line: Constant innovation in the products and
services by being first to market and provide end-to-end
solutions.

kilometres and transit time inside the company and from

direct suppliers (De Felice et al., 2013 c).

Fig. 1. Temple of WCM.

3. CASE STUDY
In order to achieve WCM it is helpful to use an analytic
framework to understand the tasks required to move to a
World Class Manufacturing approach. The case study refers
to an Italian company that operates in automotive sector.
Figure 2 shows some products.

Fig. 2. Figure 2: Products.

The company considers the logistics process a core activity
fully integrated with manufacturing, sales and purchasing
and, thereby, having a significant influence on performance.
The control and the optimization of logistics processes is also
a key factor and therefore should be recognised and fostered
as a part of a world-class business approach. World Class
Logistics extends World Class Manufacturing methodologies
to supply chain processes. With World Class Logistics, the
company aims to establish a supply chain that is fully
synchronised with the production system.
3.1 Logistics & Customer Service
Taking into account efficient operation of a company the
pillar of the WCM, i.e. Logistics & Customer Service plays a
very important role. Despite the ongoing work to improve the
results companies are continuously striving to reduce
inventory levels, more efficient supply of workstations with
necessary components, accessories, assemblies, etc.
Sometimes, shortages disturb the production process and it is
necessary to reschedule production planning (Paucha, 2012).
Therefore, main objectives of this pillar are: 1) to reduce
inventory levels; 2) to minimize internal displacement of
materials (frequency and distance); 3) continuous
optimization of flow between organizational units and

WCM foresees 10 technical pillars and 10 managerial pillars.

The levels of accomplishment in technical fields are
indirectly affected by the level of accomplishment in
administrative fields. The pillar structure represents the
Temple of WCM (Figure 1). In the present study we focus
our attention on Logistic & Customer Service. The aim of
this pillar is: 1) to create favourable conditions for the flow of
materials within the company and between the suppliers and
the plant, 2) to reduce inventory level, 3) to minimize the
amount of displacement, 4) to reduce the number of
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between the company and its suppliers; and 4) integration of

purchase, production and sales Network. Objectives can be
achieved through continuous system improvement especially
using the following methods: Value Stream Mapping, Just In
Time, Kanban, FIFO, etc. There are seven steps to be
introduced within this pillar: 1) modernization of the so
called production line re-engineering; 2) reorganization of
internal logistics; 3) reorganization of external logistics; 4)
production levelling; 5) improving internal and external
logistics; 6) integrating purchase, production and sales
network and 7) use of sequence and just-in-time
programming. In the present study we focused our attention
on the first three steps.

743

Fig. 4. Methodological approach.

STEP 0: Preliminary Activities. In order to implement the
optimization, we identified the main losses in the
production line (Figure 5).

3.2 Definition and implementation of the case study

In the present paragraph definition and implementation of the
case study is presented. Areas under study are shown in
Figure 3.

Fig. 5. Pareto Chart losses.

STEP 1: Re-engineering. The aim of the present step was to
reorganize the flow of materials in order to: 1) Create a
smooth flow by reducing inventories; 2) Synchronize
production and sales to increase customer satisfaction and 3)
Minimize the handling of the material. Great attention was
given to the collection of data and the definition of
appropriate indicators: Key Activity Indicator (KAI) and Key
Performance Indicator (KPI). KAI and KPI data collection is
shown in Table 1 and Table 2.

Fig. 3. Model Area.

A description of each steps is following and methodological
approach is shown in Figure 4.

Table 1. KAI and KPI Year 2012

Ind.

KAI

KPI

Description
Number of project
Number flow analysis
% Staff involved
% Classified materials
Area occupied and warehouse
Volume occupied.
Utilization of surface (Is)
Volumetric use (Iv)
Selectivity index (S) *
Use of surface (CUS)

Jen

Feb

Mar

Apr

May

Year 2012
June
July

Aug

Sep

Oct

Nov

Dec

n.
n.
%
%
mq
m3
cost.
cost.
cost.

4
0
1,5
7
1503
6423
0,735
0,393
0,564

4
0
3
13
1500
6405
0,733
0,391
0,573

6
1
4,6
18
1492
6365
0,729
0,389
0,576

6
2
4,6
22
1492
6365
0,729
0,389
0,576

6
4
6,8
30
1492
6365
0,729
0,389
0,576

8
4
10
38
1492
6365
0,729
0,389
0,576

8
4
10
52
1432
6005
0,700
0,367
0,729

8
4
10
69
1432
6005
0,700
0,367
0,729

9
4
11,5
75
1432
6005
0,700
0,367
0,729

10
4
13
82
1432
6005
0,700
0,367
0,729

12
7
13
94
1432
6005
0,700
0,367
0,729

13
9
15
100
1432
6005
0,700
0,367
0,729

UDC/mq

0,766

0,766

0,766

0,766

0,766

0,766

1,02

1,02

1,02

1,02

1,02

1,02

UM

* Selectivity index means that materials can be withdrawn or deposited in stock without the need to move other materials.

Table 2. KAI and KPI Year 2013

Ind.

KAI

KPI

Description
Number of project
Number flow analysis
% Staff involved
% Classified materials
Area occupied and warehouse
Volume occupied.
Utilization of surface (Is)

UM

n.
n.
%
%
mq
m3
cost.

Jen

Feb

Mar

Apr

15
17
17,5
100
1417
5930
0,693

21
19
20,6
100
1377
5730
0,673

22
21
23
100
1310
5395
0,641

25
23
25,2
100
1300
5354
0,636

776

May

Year 2013
June
July

Aug

Sep

Oct

Nov

Dec

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Volumetric use (Iv)

Selectivity index (S)
Use of surface (CUS)

F. De Felice et al. / IFAC-PapersOnLine 48-3 (2015) 741746

cost.
cost.
UDC/
mq

0,362
0,732

0,350
0,756

0,330
0,832

0,327
0,863

1,02

1,02

1,02

1,02

The first improvement was the definition of the layout and

the re-engineering of the warehouse (as shown in Figure 6).

Fig. 8. Distribution by Class.

Fig. 6. New layout of the re-engineered warehouse.

STEP 2: Reorganization of internal logistics. The aim of this
step was the reduction of WIP (Work In Progress), as well as
the internal movements (Material Handling). For this
purpose, it was necessary to classify the materials (raw
materials and semi-finished) using specific criteria, as well as
on the basis of the value assumed by some parameters. An
example of classification of materials is shown in Figure 7.

Fig. 9. Distribution by Flow.

Data were analyzed using a combination of Matrix Class-type
Flow. Using this matrix, it was also possible to determine the
flow relative to the operators, and define in detail the
individual activities (description AS IS), indicating the times,
distances, and the number of cases / duty of each activity. In
other words it is possible to assign the proper flow to each
class of material. In Figure 10 is shown an example of the
matrix used for the analysis of flow in the area concerned.

Fig. 7. Example of classification of materials.

Once that the classification was completed, all materials were
analyzed considering the relative distribution by type of class
(Figure 8) and type of flow (Figure 9). In Table 3 type of
classes is shown.
Table 3. Type of classes
AA.2
AB.2
B
C

Fig. 10. Matrix Class-type Flow.

Type of Class
Expensive and bulky
Bulky
Normal
Small parts

The matrix shows that the types of ideal flow are: 1) Just In
Time (JIT), where the production lines are enslaved by
material coming directly from outside, for classes AA.2,
AB.2 and B; 2) Indirect 1 (through buffers) or Indirect 3
(Warehouse advanced), for the materials that are part of the
class C of small parts.
At the end of the analysis were development, through Kaizen
Method, improvement projects for the most critical processes.
In Figure 11 an example of the improvement made to
optimize the Packaging is shown.

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745

Then the Truck Kanban technique was used in the in order to

optimize the flow of materials (raw materials, finished goods,
means of collecting empty) inside the company and between
the supplier and the end customer.

Fig. 11. Example of Kaizen.

The improvement processes adopted, as shown in Table 3
made it possible to achieve good levels of relations benefits /
costs.

Fig. 13. Truck Kanban.

Finally, the methodology Windows of delivery was applied
in order to optimize flow material arriving from the
manufacturer to the final customer.

Table 3. Example of achieved results

#

STANDARD KAIZEN

B/C

Re-Design the layout and addition

of new shelving in stock
Improvement of the flow of raw
materials
Reduction of the space occupied by
polypropylene in stock
Introduction of new smaller
containers for the storage of rolls of
Luton
Improved transportation of small
parts

1,97

2
3
4

In Figure 14 some results are shown.

5,83
2,78
1,62

1,56

STEP 3: Reorganization of external logistics. The aim of this

step was the reorganization of the external logistics, reducing
the working capital of the warehouses of raw materials, and
optimizing transport outdoors. In particular, the optimization
of the external transport, it is achieved through the saturation
of the means of transport and of the containers, and the
standardization of Packaging. The optimization of transport
external is carried out mainly through the saturation of the
means of transport and of the containers and a standardization
of Packaging. To achieve these results, it was decided to
introduce the use of new types of packaging, both for raw
materials and finished products, by which we can obtain (as
shown in Figure 12).
Fig. 14. Example of results.
The development of the project has brought about important
benefits on management is an economic one (see Figure 15).

Fig. 12. Example of new types of packaging.

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Chan, F.T.C., 2002. Design of material handling equipment

selection system an integration of expert system with
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Systems l13(1) (2002) 5868.
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the optimization of the layout in a manufacturing firm.
24th IASTED International Conference on Modelling
and Simulation, MS 2013; Banff, AB; Canada; 17 July
2013 through 19 July 2013 - Pages 152-161.
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organizational innovation in the fashion industry.
International Journal of Engineering Business
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Fig. 15. Benefits achieved.

The development of the project has brought about important
benefits on management is an economic one. Ultimately, the
key results for each step are: 1) Step 1: B / C = 5.65; 2) Step
2: B / C = 2.60 and 3) Step 3: B / C = 3.15.
6. CONCLUSIONS
This paper presents a new methodological approach based on
world class practices useful to measures performance within
an industrial company. In fact, we believe that there is only
one way for a developing country industry sector to
successfully engage the global industry and have a reasonable
chance of survival: continuously upgrade performance, skills
and technology. From this point of view WCM represents an
integrated system that encompasses all plant processes, from
safety to the environment, and from maintenance to logistics
and quality. The goal is to continuously improve performance
in order to reach the objective of zero waste. Implementation
of WCM helps to improve organizations internal system.
There is a growing understanding of processes, employees
better identify emerging problems and get involved in
companys activities. WCM implementation creates a cultural
change resulting in the total involvement of everyone in the
organization improvement (process-wise and product-wise).
Definitely a key industrial policy conclusion is that
intelligently designed selective policies can be effective in
the development of countries.
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