Description
World Class Manufacturing is a different set of concepts, principles, policies and techniques for managing and operating a manufacturing company.
World Class Manufacturing (WCM)
World Class Manufacturing is a different set of concepts, principles, policies and
techniques for managing and operating a manufacturing company. It is driven by the
results achieved by the Japanese manufacturing resurgence following World War II, and
adapts many of the ideas used by the Japanese in automotive, electronics and steel
companies to gain a competitive edge. It primarily focuses on continual improvement in
1. Quality;
2. Cost;
3. Lead time;
4. Flexibility;
5. Customer service;
6. People motivation;
7. People development & Safety and
8. Continuous Improvement
World Class Manufacturing is a processdriven approach.
Companies engaging in World Class Manufacturing strategies focus on improving
operations, strive to eliminate waste and create lean organizations. This often results in
higher productivity. But these companies also focus on speed of total throughput from
order capture through delivery setting new standards for delivery without the heavy
dependence on inventory. Sequential methods of performing work are being replaced
with concurrent methods to compress time, and functional and hierarchical divisions of
duties are being replaced by team?driven activities.
World Class Manufacturing is a process?driven approach to improving manufacturing
operations. It is often confused to mean standards of quality and image such as Rolls?
Royce or Rolex.
It is in direct conflict with traditional capacity?driven manufacturing mentality found in
western culture. The implementation will often surface resistance to change and "we've
always done it this way" arguments. The worse resistance is usually found in lower and
middle management, but can also can be found in the mindset of workers as well. A
case for change has to be created along with high employee involvement.
Capitalization is also a major issue when new equipment is required for quick
changeover, faster cycle times, and flexibility in operations. Executives may take a
piecemeal approach to save on investment costs as an alternative and find themselves
disappointed with the lesser results.
Just like anything else, World Class Manufacturing is no panacea, nor should it be
embraced as a religion. It is an operational strategy that, if implemented properly, will
provide a new dimension to competing: quickly introducing new customized high quality
products and delivering them with unprecedented lead times, swift decisions, and
manufacturing products with high velocity.
Features for a WCM are as follows:
1. Customer service (OTIF or stock availability) will be 99% or better.
2. Regularly ask their customers about the level of service and, as a matter of
routine, seek ways to continuously improve it.
3. Will Ship only the quantity needed by their customer.
4. Will be able and willing to offer kanban shipments to their customers if
requested.
5. Sales staff will actively promote world class manufacturing’s demonstrated
benefits to the customers.
6. Will have an active lead time reduction group.
7. Everyone in the company knows about the key customers and what
differentiates the company’s products and services from the competition.
8. All staff who are in contact with customers will have the authority and
empowerment to resolve customer problems.
9. Will have formal monthly sales and operations planning (SOP) process chaired by
the Managing Director.
10. Business plan and financial budget will integrate with the sales and operations
plan.
11. Will have a master production schedule which is managed out to at least the
cumulative lead time and integrates with the sales and operations plan.
12. Material requirements planning will cover every manufactured or purchased part
and product consumed in the manufacture and shipment of their products to
their customers.
13. All planning and control systems are updated daily.
14. Will eliminate shortage sheets, rush sheets, etc.
15. Will reach at least 98% data accuracy in inventory records, bills of material and
routings.
16. All dates on purchase orders and work orders will be realistic and achieved 98%
of the time.
17. Will use resource capacity planning based on demonstrated capacity to validate
all plans.
18. Will have 90% of manufacture (by value) under kanban control.
19. More than 75% supply of repetitively used raw material and parts from external
suppliers will be controlled by kanban.
20. Will not have the central storage of direct material and the kitting process.
21. Will lay out the majority of the machines and equipment so as to minimize the
distance between sequential operations.
22. Will have reduced set?up time between products to the point when it is
economic to make the product in the quantities required for customer
shipments.
23. Will have reduced lot sizes to customer shipment quantities throughout the
company.
24. Will have ongoing education and communication programme to inform existing
employees and educate every new employee, whatever function he or she
performs, in the value of world class manufacturing.
25. Will have trained the majority of the people who work in production in basic
problem solving techniques.
26. Employees will take the initiative to move to the point of need.
27. There are programmes in place to progressively reduce non value?adding costs.
28. Will have more than 50% of purchased items (by value) single sourced.
29. Will have decision to select a supplier based on the total acquisition cost rather
than simply the price.
30. There are programmes to reduce the number of suppliers to no more than 50
per buyer.
31. Customer returns are measured in parts per million and down to 1,000 ppm or
less.
32. Will have eliminated goods?in inspection on 90% of their repetitive material
purchases.
33. Will have reduced independent and off?line inspection to specialized equipment
only.
34. Will have 'fool proofed' critical jobs.
35. Will have eliminated independent rework and rectification.
36. Most personnel are cross trained in all the jobs that affect the end quality of
their job as seen by their customer.
37. Everyone will have authority to "stop the line" if they are unhappy about quality
level.
38. Will audit the product and process quality inside the test limits.
39. There will be mechanism to quickly and effectively receive and evaluate
suggestions from all employees.
40. Majority of people who use equipment will be responsible for its basic
maintenance.
41. Will monitor and continually work towards reducing equipment downtime.
42. Will have a preventative maintenance programme wherever it is possible.
43. Will have an active policy to help keep work areas clean, tidy and uncluttered.
44. Equipment selection criteria will include consideration of quality, set?up time
and reliability in addition to any other considerations.
45. Engineering will change the fed back to the originators of the design to avoid
repetition of problems in future products.
46. Design of products will include a consideration of the manufacturability of the
product.
47. Current approved suppliers are consulted during the design process and
monitored to improve existing designs.
48. Will have programme to reduce the time to bring new products to market.
49. New product development will be integrated into the manufacturing planning
system.
doc_906759597.pdf
World Class Manufacturing is a different set of concepts, principles, policies and techniques for managing and operating a manufacturing company.
World Class Manufacturing (WCM)
World Class Manufacturing is a different set of concepts, principles, policies and
techniques for managing and operating a manufacturing company. It is driven by the
results achieved by the Japanese manufacturing resurgence following World War II, and
adapts many of the ideas used by the Japanese in automotive, electronics and steel
companies to gain a competitive edge. It primarily focuses on continual improvement in
1. Quality;
2. Cost;
3. Lead time;
4. Flexibility;
5. Customer service;
6. People motivation;
7. People development & Safety and
8. Continuous Improvement
World Class Manufacturing is a processdriven approach.
Companies engaging in World Class Manufacturing strategies focus on improving
operations, strive to eliminate waste and create lean organizations. This often results in
higher productivity. But these companies also focus on speed of total throughput from
order capture through delivery setting new standards for delivery without the heavy
dependence on inventory. Sequential methods of performing work are being replaced
with concurrent methods to compress time, and functional and hierarchical divisions of
duties are being replaced by team?driven activities.
World Class Manufacturing is a process?driven approach to improving manufacturing
operations. It is often confused to mean standards of quality and image such as Rolls?
Royce or Rolex.
It is in direct conflict with traditional capacity?driven manufacturing mentality found in
western culture. The implementation will often surface resistance to change and "we've
always done it this way" arguments. The worse resistance is usually found in lower and
middle management, but can also can be found in the mindset of workers as well. A
case for change has to be created along with high employee involvement.
Capitalization is also a major issue when new equipment is required for quick
changeover, faster cycle times, and flexibility in operations. Executives may take a
piecemeal approach to save on investment costs as an alternative and find themselves
disappointed with the lesser results.
Just like anything else, World Class Manufacturing is no panacea, nor should it be
embraced as a religion. It is an operational strategy that, if implemented properly, will
provide a new dimension to competing: quickly introducing new customized high quality
products and delivering them with unprecedented lead times, swift decisions, and
manufacturing products with high velocity.
Features for a WCM are as follows:
1. Customer service (OTIF or stock availability) will be 99% or better.
2. Regularly ask their customers about the level of service and, as a matter of
routine, seek ways to continuously improve it.
3. Will Ship only the quantity needed by their customer.
4. Will be able and willing to offer kanban shipments to their customers if
requested.
5. Sales staff will actively promote world class manufacturing’s demonstrated
benefits to the customers.
6. Will have an active lead time reduction group.
7. Everyone in the company knows about the key customers and what
differentiates the company’s products and services from the competition.
8. All staff who are in contact with customers will have the authority and
empowerment to resolve customer problems.
9. Will have formal monthly sales and operations planning (SOP) process chaired by
the Managing Director.
10. Business plan and financial budget will integrate with the sales and operations
plan.
11. Will have a master production schedule which is managed out to at least the
cumulative lead time and integrates with the sales and operations plan.
12. Material requirements planning will cover every manufactured or purchased part
and product consumed in the manufacture and shipment of their products to
their customers.
13. All planning and control systems are updated daily.
14. Will eliminate shortage sheets, rush sheets, etc.
15. Will reach at least 98% data accuracy in inventory records, bills of material and
routings.
16. All dates on purchase orders and work orders will be realistic and achieved 98%
of the time.
17. Will use resource capacity planning based on demonstrated capacity to validate
all plans.
18. Will have 90% of manufacture (by value) under kanban control.
19. More than 75% supply of repetitively used raw material and parts from external
suppliers will be controlled by kanban.
20. Will not have the central storage of direct material and the kitting process.
21. Will lay out the majority of the machines and equipment so as to minimize the
distance between sequential operations.
22. Will have reduced set?up time between products to the point when it is
economic to make the product in the quantities required for customer
shipments.
23. Will have reduced lot sizes to customer shipment quantities throughout the
company.
24. Will have ongoing education and communication programme to inform existing
employees and educate every new employee, whatever function he or she
performs, in the value of world class manufacturing.
25. Will have trained the majority of the people who work in production in basic
problem solving techniques.
26. Employees will take the initiative to move to the point of need.
27. There are programmes in place to progressively reduce non value?adding costs.
28. Will have more than 50% of purchased items (by value) single sourced.
29. Will have decision to select a supplier based on the total acquisition cost rather
than simply the price.
30. There are programmes to reduce the number of suppliers to no more than 50
per buyer.
31. Customer returns are measured in parts per million and down to 1,000 ppm or
less.
32. Will have eliminated goods?in inspection on 90% of their repetitive material
purchases.
33. Will have reduced independent and off?line inspection to specialized equipment
only.
34. Will have 'fool proofed' critical jobs.
35. Will have eliminated independent rework and rectification.
36. Most personnel are cross trained in all the jobs that affect the end quality of
their job as seen by their customer.
37. Everyone will have authority to "stop the line" if they are unhappy about quality
level.
38. Will audit the product and process quality inside the test limits.
39. There will be mechanism to quickly and effectively receive and evaluate
suggestions from all employees.
40. Majority of people who use equipment will be responsible for its basic
maintenance.
41. Will monitor and continually work towards reducing equipment downtime.
42. Will have a preventative maintenance programme wherever it is possible.
43. Will have an active policy to help keep work areas clean, tidy and uncluttered.
44. Equipment selection criteria will include consideration of quality, set?up time
and reliability in addition to any other considerations.
45. Engineering will change the fed back to the originators of the design to avoid
repetition of problems in future products.
46. Design of products will include a consideration of the manufacturability of the
product.
47. Current approved suppliers are consulted during the design process and
monitored to improve existing designs.
48. Will have programme to reduce the time to bring new products to market.
49. New product development will be integrated into the manufacturing planning
system.
doc_906759597.pdf