MANUFACTURING

EXCELLENCE

The Manufacturing Pyramid

SAFETY

INNOVATION

FLEXIBILITY DELIVERY Q U A L I T Y C O S T

What does a customer want ?

HIGHER QUALITY

LOWER COST

gets translated to :
Efficiency
Productivity Cost Effectiveness , which is not equivalent to cost Control.

a result of Best Practices

Systems Culture of excellence International standards

Discipline
No compromise attitude

Measuring Parameters of Cost

THE MAJOR VISIBLE ONES
Efficiency of line & machines Wastage % Operational Utilization % % Downtime

Power consumed per unit

Man-hours per unit

Variance of Budget or a standard versus actual for Repair & maintenance and consumables.

THE MAJOR HIDDEN ONES

Inventory carrying cost Surplus asset Market returns

In-transit damages

All production dependent losses due to material shortage and absenteeism Cost of unutilized labour

Measuring Quality
Tailor : A one man manufacturing process.
Takes measurement Gets the cloth or buys one Makes his own specifications Manufactures himself Checks himself Test it on customer Delivers Estimate his customers Satisfaction. IN A LARGE MANUFACTURING PROCESS

All the functions that a tailor does are done by various agencies involving numerous people.
Despite the complexity, an excellent manufacturing company has a set of procedures and mandatory practices to ensure adherence to laid down norms, Throughout the supply chain

Measuring Quality
Measuring Quality is a difficult process . Excellent companies uses statistical tools for controlling Processes as well as Quality.

While measurements of % defects at various stages continues to be a world-wide practice companies demonstrating excellence Moves from reporting DEFECTS PER THOUSAND
to DEFECTS PER BILLION All Japanese company reports defects per billion Companies having manufacturing excellence are very close TO CUSTOMERS Number of Market complaints are tracked on weekly basis.

A Key Feature Of A Company having manufacturing excellence

Measurement Measurement Measurement

Annual or monthly data, is inadequate . World-class companies today, are not satisfied , even with daily figures ,of manufacturing management performance parameters most international companies are moving towards, management by real time data. ( data available every hour or minute on all parameters of manufacturing to every decision maker and controller)

DELIVERY - A Key Component

MANUFACTURING EXCELLENCE IN DELIVERY WILL BE REFLECTED BY
SPEED RELIABILITY

THREE CHARACTERISTICS FOR EXCELLENCE All excellent companies have ERP : daily or weekly stock figures from raw material, work in progress , finished goods, goods in transit , to stock at sales & dealers warehouses , are available at all time &for all . Some companies like Frito-Lay have palm tops for each & every salesmen to track retail stock Operates with a very low inventory level across the supply chain , requiring low warehouse Space. Ability to negotiate freight cost from a reliable real time market feedback

Flexbility

Change in Market requirement volume, brand, pack and new package is a reality. Growth demands introduction of new products. Reduction in machine change-over time increases production
Excellence in this area was first focussed in Japan World-wide it is known as SMED , which means Single Minute Exchange Of Dies. In a company in Japan it used to take 4 hours to change a die. TARGET WAS TO BRING DOWN FROM 4 HOUR to 1 MINUTE . It was achieved.

World class companies , measures the time of change-over and sets target to reduce it.
Multi-skilling of employees also improves flexibility. Excellent companies sets targets for multi-skilling workforces.

Innovation -- for growth & market leadership

The Innovation Process : An excellent company has a structured Process in place

IMPLEMENTATION IDEA

Cross functional gate keepers & consultants & Market evaluation

INNOVATION

Product Packaging Process simplification Efficiency improvement New Methods Wastage Reduction
IT NEEDS AN ENVIRONMENT THAT PROMOTES & NUTURES THE INNOVATION PROCESS

Excellence But How ?

If you want to change a person dont preach him for change :: instead give him such a tool , that will make him think and he changes himself -- Buckminister Fuller
( American philosopher & architect inventor of the geodesic dome)
Take a case of a carpenter, given a hammer for the first time

USE PROVEN TOOLS , USED FOR ACHIEVING MNUFACTURING EXCELLENCE

The Japanese gave us many tools for following the path towards excellence

A simple tool is use of fish bone diagram

NO
PRODUCTION

MACHINE BREAKDOWN Pump Failure MOTOR NOT WORKING

ELECTRICAL PROBLEM

SHORT CIRCUIT

WATER FALLING

ROOF IS LEAKING

the root cause Action : repair the roof

Other simple tools for bringing about Excellence Poka Yoke : FOOL Proof systems such as visual displays : Red button for stop , green for on. OR : there is no filling if there is no bottle. Introduce Poka Yoke everywhere. Kaisen : A small small continuous improvement by all employees in their workplace recognizing and rewarding the effort after implementation

Advanced tools for Excellence in manufacturing

TQM : Total Quality Management -- Involving all employees to participate in a jointly developed Quality improvement road map , using simple QC tools

TPM : Total Productive Maintenance A structured approach to achieve the Highest level of plant utilization. It involves Autonomous maintenance ( maintenance by Machine operators, rather than the maintenance crew) Planned Quality Maintenance , Kaizen,Training , Safety Health & Environment.

BOTH TQM AND TPM HAS A SPECFIC LAID DOWN PLAN FOR ROLLING OUT THESE TOOLS . OUTSIDE CONSULTANTS ARE REQUIRED.

EXCELLENCE INVOLVES IMPROVEMENT IN PEOPLE PROCESSES

Realization that all employees have : A HEAD A HEART A HAND Excellence involves creating an environment where all the 3 Hs are synchronized for improvement

WITHOUT INVOLVEMENT OF ALL EMPLOYEES MAFUFACTURING EXCELLENCE CANNOT BE ACHEIVED.

Cultivating Excellence

To introduce excellence a culture of improvement & excellence is involved. Some of key cultural similarity for excellent companies are : An environment of Trust & Respect A non-bureaucratic workplace High concern for cleanliness, Safety, and health 100 % employee participation in the planned improvement processes. Extensive and continuous need-oriented useful training of employees , particularly workforce Inculcating the habit of going into details of data and percolating important data down the address.

EXCELLENCE

We are , what we repeatedly do then

EXCELLENCE IS NOT AN ACT BUT A HABIT