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World Class

Manufacturing

Introduction

World Class Manufacturing (WCM)


Topics

After completing this chapter you will understand

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What is WCM

Meaning, Scope and Criteria and principle of


WCM

Essential concept of WCM

Characteristic of WCM Organization

Nature of WCM

Ten Pillars of WCM (including most essential) )

7 tools of WCM

7 Keys of WCM

5 S of WCM

Implementing WCM

Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Introduction

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Introduction

Every days the markets are becoming global.


Businesses and operations accordingly are becoming more
global.
A multinational corporation is a firm that has extensive
involvement in international businesses in more than one country
A global company is a firm that integrates operations from
different countries and views the world as a single market place
A transnational company is a firm that seeks to combine the
benefits of global scale efficiencies with the benefits of local
responsiveness World Class Manufacturing
World Class Manufacturing Organisations consistently deliver
exceptional performance, frequently in excess of expectations

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


What is WCM

World Class manufacturing is one of the most known production


System in the world.
It is a different set of Concepts, principles, policies and technique
For managing and operating a manufacturing unit.
It is driven by results achieved to gain a competitive edge.
Primarily focuses on continual improvements in Quality, Cost,
Lead time, flexibility and customer focus.

Japanese's are pioneers of this system and evolved after


World war 2

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Meaning and Scope.

It refers to practice followed in a manufacturing organization, in


order to consistently delivered exceptional performance, frequently in
excess of expectation.
World Class Manufacturer are those that demonstrate
industry best practice.

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Criteria

There are two overriding criteria to


Judge whether a company can be
Regarded as world Class .
1) How does the company compare
with its best competition?
2) Has the company increase its
score since last year?

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Principles

1) World Class Safety is the foundation of World Class


Performance.
..

2) WCM leader have a passion for Standards.

3) In a World Class Company voice of customer can be heard in


the plant.
4) WCM does not accept losses of any kind. (Goal is always zero:

Accident, Service and quality defects, inventory, and breakdowns)


5) A rigorous application of WCM method guarantees the
elimination of losses
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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


Principles

6. plant all abnormalities are immediately

7. WCM takes place in the workplace, not in the


Not in the office

8. WCM is most effectively learnt by practicing the


techniques with the plant teams .

9. The power of WCM comes from the involvement 0f people

10. World Class companies create the energy of a


crisis in the face of continued success

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Mr Hemkant Deshpande

World Class Manufacturing (WCM)


4-Essential concept

Four Essential concept of WCM


1) Total Quality Control.

2) Total Productivity maintenance.


3) Total Industrial Management
4) Just in time

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World Class Manufacturing (WCM)


4-Essential concept

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World Class Manufacturing (WCM)


Characteristic of WCM

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

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Customer service.
Quality control and assurance.
Research and development/ new product development
Acquiring new technologies
Innovation
Team-based approach (adopting and using effectively)
Best practices (study and use of)
Manpower planning
Environmentally sound practices
Business partnerships and alliances
Reengineering of processes
Mergers and acquisitions
Outsourcing and contracting
Reliance on consulting services
Political lobbying

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World Class Manufacturing (WCM)


10 Pillars of WCM

1 Safety
2. Cost Deployment
3. Focused Improvement
4. Autonomous Maintenance / Workplace Organization
5. Professional Maintenance
6. Quality
7. Logistics
8. Early Equipment Management
9. People Development
10. Environment

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World Class Manufacturing (WCM)


The Most essential Pillar

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World Class Manufacturing (WCM)


5 S of WCM

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5S, abbreviated from the Japanese words Seiri, Seiton, Seison,


Seiketsu, and Shitsuke, are simple but effective methods to organize
the workplace.

The 5S, translated into English are: housekeeping, workplace


organization, clean up, keep cleanliness, and discipline. They can
be defined as follows:

Housekeeping. Separate needed items from unneeded items. Keep


only what is immediately necessary item on the shop floor.

Workplace Organization. Organize the workplace so that needed items


can be easily and quickly accessed. A place for everything and
everything in its place.

Cleanup. Sweeping, washing, and cleaning everything around working


area immediately.

Cleanliness. Keep everything clean for a constant state of readiness.

Discipline. Everyone understands, obeys, and practices the rules when


in the plant.
Mr Hemkant Deshpande

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World Class Manufacturing (WCM)


7 tools of WCM
1. Prioritization (Find out important problems)

2. Systematic, logical and detailed deployment of objectives into


right means and right solutions, and measurement of the results against the
objectives and targets (to identify where the problem is)
3. Problem description with sketches (Drawing sketches requires better
understanding of the problem in detail / to understand the problem.)
4. 5s
5. Root-cause analysis (To identify true causes.)
6. Phenomena description with sketches (Observe carefully what are
happening behind the problem.)
7. TWTTP Find hidden issues behind the problem
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World Class Manufacturing (WCM)


7 Keys of WCM

1)

Reduce lead times

2)

Speed time-to-market

3)

Cut operations costs

4)

Exceed customer expectations

5) Manage the global enterprise

6)
7)

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Streamline outsourcing processes


Improve business performance visibility

Mr Hemkant Deshpande

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World Class Manufacturing (WCM)


Grades for WCM

"W - World class


"X - Very good but not quite world
class (country class)
"Y - Better than many (city class)
"Z - Poor (village class)

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World Class Manufacturing (WCM)


WCM Check list

Q1) Do you have a 99% or better level of customer service (or


product availability)?
W 99% or better customer service level (on time in full or availability).

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95% up to 99% customer service.

90% up to 95% customer service.

Below 90% customer service.

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World Class Manufacturing (WCM)


WCM Check list

Q2) Does everyone in the company know who the key customers are
and what differentiates the companys products and services
from the competition?
Grade

Criteria

Everyone knows key customers through a new employee .


induction scheme and regular updates, meetings, notices.

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Most people know key customers.

Managers know key customers.

Customers known mainly on a "need to know" basis.

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World Class Manufacturing (WCM)


WCM Check list
Q3) Do all staff who are in contact with customers have the authority
and empowerment to resolve customer problems?
Grade

Criteria

W
A person answers telephone calls within 4 rings and takes
responsibility to deal with the call either immediately or by getting back
to the caller within 24 hours. Similar standards are used for e-mail and
written complaints.
X
A person answers telephone calls and takes responsibility to
deal with the call either immediately or by getting back to the caller
within 5 days. Similar standards are used for e-mail and written
complaints.
Y

Customer problems are dealt with as soon as possible.

Z
Many customer problems are outstanding or not satisfactorily
resolved.
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World Class Manufacturing (WCM)


WCM Check list

Q4) Do Kanban control your supply chain?

Grade Criteria
W
At least 75% of your shipments to customers controlled by
Kanban or vendor managed inventory (i.e. shipped / delivered based on
customer usage) or you are able and willing to make Kanban shipments if
requested
X
Some but less than 75% of shipments under Kanban control or
you are probably able to make Kanban shipments if requested.
Y
You may be able to make Kanban shipments if
requested

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You would not make shipments under Kanban control.

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World Class Manufacturing (WCM)

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