WORLD CLASS

MANUFACTURING
 World Class Manufacturing
(WCM)
Presented By Roll
Numbers
1) Anita Agarawal 02
2) Dhawal Ambani 03
3) Sushma Bhandari 04
4) Gaurang Bharkhada 05
5) Sanjog Devrukhkar 11
6) Shrinivas Krishnamurty 19
7) Arun Singh 50
Presented To
Kedar Sawant Sir

(MFM Sem-II : 2008-11)

 Meaning & Scope

• It refers to the practice followed in a

manufacturing organizations, in order to
consistently deliver exceptional performance,
frequently in excess of expectations.

• World Class Manufacturers are those that

demonstrate industry best practice.
 Criteria
There are two overriding
criteria when using this
checklist to judge whether
your company can be
regarded as World Class

1) How does the company

compare with its best
competition?
2) Has the company
increased its score since
last year?
Few Top Indian Manufacturing
Companies
• Aditya Birla Group
• Hindustan Lever Network
• Mahindra & Mahindra
• Bombay Dyeing
• Reynolds India
• Hindustan Paper
Corporation Ltd
• Haldia Petrochemicals
• Emani Group
• Mittal Dhatu Rashayan
Udyog
• Surya Salt
 How a WCM is achieved
• Develop the awareness of the need to make
the transition to World Class Manufacturing

• Develop the ability to search for relevant

tools and to apply them effectively

• Monitor progress so that an improvement

program can be systematically utilized.
 Implementing WCM :
Tools to Measure and
Record Progress
Success WCM Tools Measurement
Factors Indicators
1. CostJust-in-time logistics,· Inventory holdings
control quality at source and· Absence of defects and
supply chainrework
management tools · Cost of incoming materials

2. Quality Statistical Process· Customer return rates

Control, fool-proofing· Internal reject, rework &
to prevent errors,scrap rates
Pareto analysis of· Supplier quality
types and causes of Performance
production defects
3. ExternalJust-in-time logistics,· Time from customer order
flexibility quality at source andto delivery
Success WCM Tools Measurement
Factors Indicators
4. Internal Cellular layouts, single unit · Machine changeover times
flexibility flow, production pulling, · Batch and lot sizes
Kanban signaling system, · Inventory levels
single-minute exchange of · Throughput time through
dies for rapid machinefactory
changeover, supply chain · Machine utilization levels
management
5. Capacity • Multi-tasking, · Numeracy and literacy
to change • Multi skilling, levels
(Human • Quality circles, · Labor/management
resource • Kaizen groups, turnover levels
development) • Training, · Absenteeism rates
• Incentive schemes. · Training expenditure and
types of training
· Employee development
· Suggestion
schemes/continuous
improvement
 Contrasting Mass Production
& WCM
Critical ControlMass Production World Class
Points Manufacturing
Logistics · Large batch· Single unit flow
production production
· Just-in-case· Just-in-time inventories
inventories · Flexible machinery and
Specialized rapid machine
machinery changeover

Quality · End of line· Quality-at-source at

inspection each part of production
· Reworking ofprocess
defects
Work · Division of labor · Multi-tasking and multi
organisation between skilledskilling
 The 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)

 WCM Check list
Q1) Do you have a 99% or better level of customer service
(or product availability)?

Grade Criteria

W 99% or better customer service level (on

time in full or availability).
X 95% up to 99% customer service.

Y 90% up to 95% customer service.

Z Below 90% customer service.

Q2) Does everyone in the company
know who the key customers are
and what differentiates the
company’s products and services
from the competition?
Grade Criteria
W Everyone knows key customers through a new
employee induction scheme and regular
updates, meetings, notices etc.
X Most people know key customers.
Y Managers know key customers.
Z Customers known mainly on a "need to know"
basis.
 Q3) Do all staff who are in contact
with customers have the authority
and empowerment to resolve
customer
Grade Criteria problems?

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
 Q4) Do Kanban control your supply
chain?
Grade Criteria question

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.
Z You would not make shipments under Kanban
control.
Types of Operation which creates
a WCM
The Kanban Units
Control Concept

Kanban control Kanban control. The Kanban

means that the Movement of messages can
authority to parts shown in take the form of
make or move blue, circulation an e-mail, fax,
an item is of Kanban in red. card, empty
based on that Machines are container or
item's usage shown as circles require you to
unless there and buffers as visit their plant to
has been a triangles. The replenish their
properly last buffer is the stock of your
approved and finished goods products (usually
 Just In Time (JIT)
Just in Time manufacturing is a systems approach to
developing andManufacturing
operating a manufacturing system.
We will take an example of banking process:

In short, JIT means making what the market wants,

when it wants it. JIT has been found to be so effective
that it increases productivity, work performance and
product quality, while saving costs
                                         
JIT Improvements to
Manufacturing`
In Summary, JIT
Systems requires
Changes in:
• System Design
• Organization
Attitudes and
Structures
• External
Relationships
• New Management
Priorities

Tim
e
 CONWIP control

CONWIP stands for Once the parts are

Constant Work-In- released, they are
Process, and processed as quickly as
designates a control possible until they wind up
strategy that limits the in the last buffer as finished
total number of parts goods. One way to view this
allowed into the is that the system is
system at the same enveloped in a single
time Kanban cell: Once the
consumer removes a part
CONWIP control. from the finished goods
Movement of parts inventory, the first machine
Factors which can make a
WCM
Some other factors
 Conclusion: Control of
Operations
Before commencing implementation of control systems
there are always five beneficial things to do which will make
any method of control easier to implement and make the
system work better operationally
(Generally world class manufacturing businesses have done
these things) 
 Reduce time wasted in setting and reduce set up
times
 Form Natural Groups (cells)
 Reduce throughput times
 Postpone product mutation
 Remove the trivial many, to focus on the vital
few