Singles & Doubles

TOWARDS
BECOMING
A WORLD CLASS

G.RAVINDRAN ATM on 17th May 13

11th MAY - National Technology Day
What does it mean to be a world-class
Manufacturer?

It means being successful in your chosen market against any competition

regardless of size, country of origin or resources.
 What does it mean to be a world-class
Manufacturer?

It means matching or exceeding any

competitor on
Quality
Innovation
Lead-time
Flexibility
Cost
Customer service
What does it mean to be a world-class
Manufacturer?

It means you are in control and your competitors struggle to emulate your
success.
What is the Journey towards World Class ?
 World Class
Towards World class Recognized as the best.
Benchmarked by others even in other secto

Best in Class
Exceeds customer expectations,outperforms
all competitors and has clear competitive
edge

Efficient
Meets all internal requirements for cost margins,
asset utilization,cycle-time and measures of excellence

Effective
Satisfies all customer requirements

Incapable
Is ineffective , inefficient and at the risk of failing.
Needs major redesign
 Are you a world class manufacturing company?

What does it take to be world class?

First and foremost, you must be in
control
In control of your markets and
customers,
in control of your processes and
resources information.
Product quality

1. Is your product quality recognized as a benchmark by your

industry and you consistently enjoy a sizeable market share?

The world class organizations are characterized by superior product quality as compared
to its competitors. They also enjoy a good customer confidence which is represented by
their share in the market .
Knowledge of key customers

2. Does everyone in the company know who the key

customers are and what differentiates the companys
products and services from the competition?

Awareness of the strengths and weakness of the companys

product or service is a key factor in achieving the involvement of
everyone in the company and improving employee satisfaction.
On time delivery

3. Do you ship to your customers on time in full (OTIF), more than

99% of the time, against their latest schedule or delivery agreement?

All objectives are subordinate to the requirement to ship what your customer expects,
when expected, with all relevant paperwork complete. 99% of items shipped should
arrive at the customer at the agreed time.
Empowered staff

Do all staff who are in contact with customers have the

4.
authority and empowerment to resolve customer
problems?

Managing the points of contact with your customers is the single most
important company success factor. A company can only consider itself to be a
world class manufacturing company if all its customers are confident that any
problems they have will be speedily resolved and they will be kept fully
informed, preferably by the person they initially contacted.
Eliminate central storage

5. Have you eliminated the central storage of direct material and is

purchased material supplied to the point of use without routine
inspection?

Moving material from one place to another adds cost but not value, so material should
be delivered to the point of use wherever possible. The users of material should be
responsible for the storage of that material, including any goods-in checks that cannot
be carried out by the supplier. Users should also be able to check that replacement of
stock is underway if stocks get too low. Ideally, the vendor should be responsible for
delivery to the point of use and should be able to decide when to replenish material
when this is practical.
Minimize distance between sequential operations

6. Have you laid out the majority of your machines and equipment so
as to minimize the distance between sequential operations?

You should always arrange machines and equipment in the sequence in which they will
normally be used. Such a process based layout will sometimes decrease utilization but
the work in progress saving alone will more than pay for this in most cases, with
additional savings in quality, costs and administration. The people who are responsible
for work place layout, ideally the people who work in the area, have to take the trouble
to think through the work flows before laying out the work place. The value of line-of-
sight communication between sequential operations cannot be over-stressed.
Minimum set-up time

7. Have you reduced or are you reducing the set-up time between
products to the point when it is economical to make your product in
the quantities required for customer shipments?

If at any stage of manufacture you produce in batch quantities that are larger than the
shipment quantities required by your customers due to set-up time, there should be an
active set-up time reduction group. Wherever possible, equipment should be dedicated
to one product to eliminate the time and cost of changing from one part to the next.
Where this is not possible or economic, set-up time must be kept as short as
economically possible to avoid the trap of increasing lot sizes to gain "economies of
scale". Wherever possible batch sizes should be the same throughout the process.
Training

8. Have you an ongoing education and communication program me to

inform existing employees and educate every new employee, whatever
function he or she performs, in the value of world class manufacturing?

World class manufacturing is a program me of continuous change and change has to be

carefully managed. It is important to take everyone along with the changes and so avoid the
pockets of resistance that result from a lack of understanding of the changes and the reasons
for them. As many people as possible should have an awareness of the basic 7 tools of quality
(process charts, Pareto (80/20) analysis, Ishikawa (cause and effect) diagrams, histograms, run
diagrams, statistical process control and check sheets).
Initiative

9. Do employees take the initiative to move to the point of need?

Employees taking the initiative is a recognition of the "thinking worker" and

helps reduce the level of direct supervision required by a team. Employees
should never be "kept busy" doing work that is not needed.
Reduce Non Value Adding Activities

10. Is there is a programme in place to progressively reduce non

value-adding costs?

A non value-adding cost is anything which adds cost but not value to the saleable
product or services provided by the company to customers. Non value-adding costs are
characterized by the 7 wastes of overproduction, waiting, transporting, inappropriate
processing, unnecessary inventory, unnecessary motions and defects.
Smaller number of quality suppliers

11. Is there a programme in place to reduce your supplier base to a

small number of qualified suppliers integrated into your business?

The world class purchasing objective is a small supplier base of reliable companies working in
partnership from the design stage, delivering frequently, in the quantities you need, directly to the
point of use.
As it is not possible for one person to maintain a good relationship and understanding with more
than about 50 supply companies, single source supply is necessary. With single sources you can get
the genuine, invaluable involvement and commitment of your suppliers to your business. Long term
commitment to suppliers and single sourcing makes you as important as possible to your suppliers
and allows suppliers to engage in a continuous reduction of costs using, for instance, value analysis
techniques. Delivery to the point of use is not possible without single source supply.
TQM Culture
12. Is there a culture of Total Quality?

here must be a culture of total quality throughout the business. Getting one person to do a job and
then someone else to check it is not only wasteful but de-motivating. Every person or team that has
a job to do should be able to check that the job has been done correctly and should be given the
training, equipment and responsibility for doing so. The role of quality control is to audit quality and
feedback long term process control information. Only if very expensive equipment, a special
environment and/or very specialist training is needed should the quality control department be
involved with routine testing. The role of quality control in world class manufacturing is an audit role.
The principles of total quality should permeate all activities. Every fault found must be seen as an
opportunity to improve the quality of the product, the basis of blame free quality control.
Audit
13. Do you audit the product and process quality inside the test
limits?

You cannot get to parts per million quality levels if your quality checks only sort the good from the
bad, the passes from the failures. Everyone involved with a task that can vary must be check where
the process is within the tolerance band and be able to take corrective action. By this means,
operators have an early warning of possible failures so enabling the processes to be fine tuned. The
technique generally used is statistical process control.
Authority to stop

14. Does everyone have authority to "stop the line"?

If quality is crucial to your success, there is no better way to drive up the quality than to give all
employees the authority to halt the job or process if they are unhappy about quality levels. An
employee must always choose to stop a process rather than pass on a known or suspected defect.
Anyone who finds a defect must always pass it back to the person who made it.
Mistake-proofing

15.Have you 'fool proofed' critical processes.?

To reach parts per million quality standards, jobs have to be made foolproof. Fool proofing (called
poke -yoke by the Japanese) means that either mistakes cannot be made or, if this is not possible, the
equipment will automatically identify and/or stop when a reject part is produced. Fool proofing
requires imagination and commitment to quality. There is no easy way to measure your degree of
fool proofing except to ask yourself if the operations that could cause faulty products rely on human
judgment.
Equipment ownership with users

16. Are the majority of people responsible for the maintenance of the
equipment they use?

You cannot afford delivery schedules to be dependent on unreliable equipment. The users of
equipment are the best people to carry out preventative maintenance because they are the first to
know when their equipment is not performing properly and should also be the best people to know
when it is fixed. It follows that if they can be trained in preventative as well as corrective
maintenance, this will be the most cost effective way of reducing down time. Users of equipment
should have a real sense of ownership.
Unreliable equipment is one of the most popular reasons for "safety stock" or "safety time" which
increase costs and lengthen lead times. There should be a routine report of downtime widely
circulated as well as a downtime reduction teams set up if required
Good housekeeping

17. Do you have an active policy to help keep work areas clean, tidy
and uncluttered?

It has been shown time and again that tidy work areas reduce the frequency of errors
and delays. Most world class manufacturing companies have regular inspections of their
work areas and continually look for ways to tidy up their processes. Housekeeping must
be the responsibility of the people who work in the area. A clean and tidy workplace will
also give people working in it a sense of pride. You could not imaging a world class
company being a mess now could you?
Product design to involve all departments

18. Does the design of products include a consideration of the manufacturability of

the product?

The design of all products and processes should include manufacturing considerations such as current
equipment, suppliers, existing parts, subassemblies and ingredients. In many cases manufacturing, marketing
and purchasing functions should be involved at the design stage to ensure, as far as possible, designs are
manufacturable.
In most businesses it is difficult to optimize designs unless the suppliers of material or components are
involved at the design stage of your products. Improvements to materials and components you are currently
purchasing should be evaluated also to see if your end product can be improved so that you keep your
products competitive.
A key element in design for manufacture is an evaluation of existing designs. Unless designers are aware of
changes required to current designs, future designs cannot benefit from the lessons learnt in the past. Self-
inspection and rectification of your own mistakes is just as important in design areas as it is anywhere else.
Continuous improvement

19. Is there a culture of continuous improvement in the

organization.?

The one universal truth in all manufacturing companies is that customers are demanding
higher and higher levels of product quality and shorter lead times. It is also true that in
most industries suppliers are responding. If you do not keep improving your product
quality and your competitors do, you will lose out.
Feedback from customers & employees

20. Is there a mechanism to quickly and effectively receive and evaluate

suggestions from customers and employees? Are people motivated in the
organization?

The organization must take continuous feedback from its customers to increase CSI (
Customer satisfaction index )
The employees must feel that any ideas they have for the improvement of any task they
perform will be welcome, and resources made available to evaluate their ideas if necessary. A
formal suggestion scheme is neither necessary nor sufficient to score on this point neither is a
reward scheme. It is an attitude which encourages innovation and involvement of everyone
which is important.
Score

Note: In order to be a World class manufacturing company, you must score

a YES on every question.
A No for any question should be taken as an opportunity to improve.
HOW DO WE BECOME WORLD CLASS ?
9 steps to world class Manufacturing
1. Focus on Competitive Quality
2. Implement Lean manufacturing
3. Achieve cost efficiency
4. Reduce Time-to-Market
5. Exceed Customer Expectations
6. Streamline Outsourcing Processes
7. Have a global perspective
8. Develop People Talent
9. Develop a Team Culture
 1. Focus on Competitive Quality

Todays dynamic and turbulent business environment has shifted

Assessment of performance
Model of Continuous improvement
the focus of the organizations from Quality to Competitive
quality. With ever changing customer requirements, quality is no
more a competitive weapon. Every organization has quality today.
What separates a world class organization from others is - how
better you are from the rest of your competitors.

Measures of Mfg. excellence
Benchmarking - technique
Manufacturing best practices
TQM
Everybody in the organization must think and demonstrate that they
can do better. The need of the hour is to constantly challenge the
status-quo and develop a constructive level of dissatisfaction with
the present performance.

BPR
Kaizen
PDCA
FMEA

Six sigma
HOW TO DEVELOP COMPETITIVE EDGE ?
GODREJ LOW COST REFRIGERATOR
BENCH MARK ALL FUNCTIONS TO BECOME WORLD CLASS

WE NEED TO BM
PRODUCT
PROCESS
HR
MARKETTING
MANUFCATURING

BENCH MARKING IS THE STARTING POINT TOWARDS WORLD CLASS

Bench Marking - Product , Process System

System ( Examples ..)

Balance Score Card - 70% of
Fortune 500 companies adopt ,
TCS, INFY, HCL -Indian
Companies

Total Employee Involvement

Email Policy

Competitor valve
 2. Implement Lean Manufacturing systems

Lean manufacturing is an overall methodology that

Lean Management
Non-Value Adding Activities
Five S-technique 7 6th S - Safety
Total Productivity Maintenance
seeks to minimize the resources required for
production by eliminating waste (non-value
added activities) that inflate costs, lead times and
inventory requirements, and emphasizing the use
of preventive maintenance ,

Supplier quality improvement

Supplier evaluation
Supplier best practices
Supply chain

Root cause analysis

Value Chain Mapping

What is Lean ?
Lean is a
Systematic,Continous Improvement approach that
concentrates on
MORE Value for customers by

Eliminating activities that are considered WASTE

Think Lean is to switch from an Internal to External Focus

Lean Concepts and Principles

Think Lean is to switch from an Internal to

External Focus
Think Lean is to switch from an Internal to
External Focus
LEAN Components and Implementation
5S & Visual Factory
Cellular Manufacturing
Kaizen
Poka Yoke & Mistake Proofing
Quick Changeover & SMED
Production Preparation Process (3P)
Pull Manufacturing & JIT
Standard Work
Theory of Constraints
Total Productive Maintenance
Training Within Industry
Value Streams
Think Lean is to switch from an Internal to
External Focus
Think Lean is to switch from an Internal to
External Focus
 SHIFT MINDSET

CURRENT REQUIRED
THINKING THINKING
Transportation
Processing

Inventory TYPES Correction

WASTE Waiting
OF
WASTE
Over-
Production

Motion

WASTE NOT DEFINED WASTE IS "TANGIBLE

REACT TO LARGE EXAMPLES IDENTIFY MANY SMALL OPPORTUNI
REACTIVE IMPROVEMENT -LEADS TO LARGE OVERALL CHAG
CONTINUOUS IMPROVEMENT

nPc
Slings/Belts Storage in Shop
5 S practice
Storage of PPE in shop /office
 MATERIAL FLOW IN A PROCESS - ORIENTED LAYOUT

Plating
Painting
Storage
Receiving

Grinding
Turning

Milling Storage Assembly

Sawing

Note : Material Flow

Nagare : 51
 MATERIAL FLOW IN A PRODUCT - ORIENTED LAYOUT

Sawing Turning Painting Assembly

Sawing Milling Grinding Plating

Turning Painting

Miscellaneous
Assembly
Storage
Assembly
Services & Utilities

Note : Material Flow

Nagare : 52
 3. Achieve cost efficiency

Focus more on top-line benefits (increased revenue), the

bottom line is still greatly dependent on controlling costs.
Companies with a lower operational cost structure enjoy
an obvious advantage in profitability and the ability to
adjust pricing to meet competitive pressures if necessary
Quality,Cost & Profit
Cost of Quality
to maintain or gain market share.

Non-Value Adding Activities

Gemba Kaizen - A low cost approach
Mistake Proofing
Pokayoke
Reducing Defectives through FMEA
When a company implements world-class operational
processes, it improves multiple measurements
simultaneously, including cost, lead times, inventory and
customer service.

Waste Assessment
Waste Reduction
Cost Management model TO ACHIEVE COST
EFFICIENCY

1. Reduce 2. Reduce
quality costs cycle time

Eliminate 4.
NVA Eliminate
activities waste

Note: See respective sections for more details

 REDUCE QUALITY COST

Quality Costs

Conformance Non-Conformance

Prevention Appraisal Internal failure External failure

VISIBLE AND HIDDEN COSTS

Scrap
Rework
Visible costs
Warranty costs

Conversion efficiency of materials

Inadequate resource utilization

Excessive use of material

Cost of redesign and re-inspection Hidden Costs
Cost of resolving customer problems

Lost customers / Goodwill

High inventory
The Objective of any Quality Management
System (QMS) is.

CONTINUOUS
OBJECTIVE IMPROVEMENT

Customer Process Total

PRINCIPLES Focus Improvement Involvement

Leadership
ELEMENTS Education and Training Supportive Structure
Communications Reward and Recognition
Measurement
Continuous Improvement for Improving PQCDSM
PDCA SEVEN-STEP METHOD

1. Select and describe

6. Standardize solution problem
7. Reflect on process 2. Study present system
and develop future 3. Identify possible causes
plans

4. Plan and implement

5. Evaluate effects solution
Continuous Improvement of
Quality through PDCA
Through continued
application of the cycle,
the organization gets to
higher and higher quality
levels.
(4) (1)
Action Plan

(3) (2)
Check Do
(Study) Quality
Cost Saving by WAPCO

WABCO SUCCESS STORY IN TEI

 Kaizen Training
Different Types of Activities
Being able to tell the difference between NVA and VA activities
is an important step in the Improvement Process.

Value Added An activity that changes raw

Activity (VA) material to meet customer
expectations.

Those activities that take

Non Value Added time, or occupy space but do
Activity (NVA) not add to the value of the
product.
You must ask yourselves Would you as a customer be
willing to pay for any NVA activity being performed to that
NEW 4x4 Pickup you just ordered?
nPc
 Kaizen Training
Some examples NVA Activities:

Walking Waiting on
machine cycle

Unnecessary Generating useless

stock on hand reports

Unnecessary
Transporting motion
parts

THE GOAL IS TO ELIMINATE THE

NON-VALUE ADDED ACTIVITIES.
nPc
 4. Reduce Time-to-Market

Customers now penalize suppliers that infringe on

their time, whether through delays, mistakes or
inconveniences.
They count the speed of response time as a Key
Value Dimension.
Time based competition

Creativity & innovation

Niche Marketing Good ideas are not enough; well-managed processes

SCAMPER for bringing new products to market faster than the
New product development competitors can lead to significant competitive
Risk Analysis advantages.
Risk Management

Ten commandments of time

 5. Exceed Customer Expectations

The ultimate key to success in any business

enterprise is to please your customers.
Are you a customer driven org. The most successful companies dont just meet
Customer expectations customer expectations, they exceed them and beat
Exceeding expectations
Competitive Edge
the competition by setting the standards at a level
that makes it difficult, if not impossible, for others to
Internal health surpass.
Quality
Quality MIS
Quality management principles
Customer satisfaction measurement
Customer loyalty
Customer practices of global leaders
Customer survey forms
Quality Function Deployment
CUSTOMER SATISFACTION
Japanese scientist, N.Kano identified three characteristics of customer
satisfaction :
WHAT CONSTITUTES VALUE
A. Basic
TO CUSTOMER
B. Performance
Performance
C. Delight
Reliability
Durability
Serviceability
Aesthetics
Perceived quality

It is therefore quite clear that satisfaction of the basic needs of the

customer is not going to help the organizations any more. The
organizations will have to constantly strive to meet more than the basic
needs of the customer and delight or excite them to have the
COMPETITIVE EDGE.
EXCEED CUSTOMER EXPECTATION
SAVE VS 4P IN
MARKETTING

VALUE IN
PLACE OF
SOLUTION PRICE
/SPECIFICATION
SELLING IN PLACE ACCESS IN EDUCATION IN PLACE
OF PRODUCT LIUE OF OF PROMOTION
PLACE
 6. Streamline Outsourcing Processes
Outsourcing of manufacturing operations is a common practice
today because it offers flexibilitythe ability to change products
or processes rapidlyand can often save money by exploiting
economies of scale or other favorable cost factors the contractor
has to offer.

For manufacturers, the fastest and easiest way to achieve this

Process classification framework goal is through partnerships with companies that have attained
superior capabilities in particular phases of the process-like
Principles of outsourcing
production.

By partnering with world-class contract manufacturers you can

reap the benefits almost immediatelywell-managed processes,
high quality, on time deliveriesand increase your performance
and deliver to meet your customers expectations.At the same
time time you can focus your own resources on things that you
do best-product innovation,design,marketing,distribution sales or
manufacturing.
STREAM LINE OUTSOURCING

Concentrate company resources upon core

competencies

Revisit outsourcing strategy based on the past

performance and outsource non core activities to
specialized vendors.

Bring back core work into operations

 7. Have a Global perspective

Theres no question the world is shrinking, and

virtually every business is now involved in some
International Marketing
form of international tradewhether marketing
and selling to customers in other countries or
Global Sourcing
simply using parts or materials that are produced
elsewhere. Customers today are looking for
World class Quality
world class products.
Cost Competiveness

The companies wanting to become world class

Speed & Responsiveness
manufacturing must follow the international
standards in quality.
What do we need to do ?
DEVELOP ORGANIZATIONAL CULTURE

DIMENSIONS OF CULTURE CHANGE

CULTURE REQUIRED
INNOVATION INNOVATIVE AND TEAM
STABILITY ORIENTED CULTURE
RESPECT FOR PEOPLE
OUTCOME ORIENTED
ATTENTION TO DETAIL
TEAM ORIENTED
AGGRESSIVENESS
CUT ACROSS SILOS WORKING
 BALANCED SCORE CARD DEPLOYMENT
FOR MEETING THE STRATEGIC GOALS

SALES, EBITA, RVA ,% DMC,

WCM

QUALITY, OTD, VALUE

,RELIABILTY , ACCESS &
EDUCATION
VSM, LEAN, WCM, TQM

PEOPLE PEOPLE
TRAINING EMPOWERMENT
JOB ROTATION MENTORING
DELEGATION COACHING
TALENT CULTURE
DEVELOPMENT
Now and into the Future
What do we need to do
Stability: Rapidly improve the efficiency of the
companys operation.

Growth: A decisive competitive edge marketing strategy,

leveraging the operational excellence to a competitive
edge position.
 HOW TO DO ACHIEVE
GROWTH & STABILITY ?
FOCUS ON
CUSTOMER PERSPECTIVE
STRATEGY PERPSPECTIVE
TECHNOLGY PERSPECTIVE

DEVELOP
INNOVATIVE & TEAM CULTURE
LEADERSHIP PIPELINE
COMPETENCIES AND CAPABILTIES

IMPROVE
OPERATIONAL EFFICEINCY
COST EFFICIENCY
 CURRENT NEEDS,EMERGING
NEEDS AND VISIONARY
OUTLOOK OF FUTURE NEED
Visionary

Emerging
WE NEED TO Needs
BE HERE FOR
PROJECT ?
LAKHYA Current Growth Zone
Needs

CURRENT INCREMENTAL INNOVATIONS

G ROW T H NICHE INNOVATION
CURRENT VERTICAL FOCUS REVOLUTIONARY
ADJACENT MARKETS INNOVATION
NEW VERTICAL Expansion in Incremental
verticals Innovation
Niche
Adjacents
Innovations Visionary /
New verticals Revolutionary
innovation
Comfort Zone
 ACHIEVING RESULTS THRO PROCESS

NINE STEPS TO BECOME WORLD CLASS COMPANY

1. Focus on Competitive Quality (Product Bench marked by others )
2. Implement Lean manufacturing ( Manufacturing Excellence)
3. Achieve cost efficiency
4. Reduce Time-to-Market ( on Time Delivery, New Product launching etc)

5. Exceed Customer Expectations ( Knowledge on Key Customers Value proposition,

meeting unmet customer needs)

6. Streamline Outsourcing Processes

7. Have a global perspective
8. People Total Employee Involvement
9. Develop a Team culture
THANK YOU
World Class Manufacturing definition:

The recognition of an organisation as a benchmark by its

industry sector and, for some aspects, by other industry
sectors.
World class manufacturing organizations consistently deliver
exceptional performance, frequently in excess of
expectations."
 Innovation Quadrant- Innovation
Opportunities for Valves
Technology
Innovation Wild Innovation
Low carbon foot Box 3 Projects
print valve (smart/Digita
Unknown (Composite valves, l valves, All in
Solution components) one Valve ,
Technology Transparent
intervention in Mfg, Valve)
Testing, Training etc

Application
Improvement
Known Innovation
Solution Cost competitiveness Plant life cycle
in CSGGC, BFV, Support ( After market
FSGGC. New sales)
developments like Solution selling,
API 603, 3T design Automation, Valve
Gate, Dual Plate etc Health Monitoring etc

Met needs Un Met needs