International Scenario and Indian Scenario

Evolution of WCM • WCM was pioneered by Toyota in Japan, where they called it the Toyota
Production System. • This was largely developed by Taiichi Ohno who rose from a foreman to
become a vice president in Toyota and Shigeo shingo who was an industrialist • Ohno: all we
are doing is looking at the timeline from the moment customer gives us an order to the point
when we collect the cash and we are reducing the time line by removing the non value added
wastes. • Shingo has identified seven kinds of wastes which are to be eliminated .the seventh
being the deadliest. 1. Waste of waiting 2. Waste of transportation 3. Waste of processing itself
4. Waste of stocks 5. Waste of motion 6. Waste of making defective parts 7. Waste of OVER
PRODUCTION

Monden 1983 • Monden provides a a different view on the basics of WCM • They include: 1.
Quality control which enables the system to adapt to daily and monthly fluctuations in demand in
terms of quantities and variety 2. Quality assurance which assures that each process will supply
only good units to subsequent process 3. Respect humanity

In short mission of WCM is to bring manufacturing close to market by eliminating wastes.

• Single-Minute Exchange of Die (SMED) is one of the many lean production methods for
reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a
manufacturing process from running the current product to running the next product. This rapid
changeover is key to reducing production lot sizes and thereby improving flow (Mura).

• The phrase "single minute" does not mean that all changeovers and startups should take only
one minute, but that they should take less than 10 minutes (in other words, "single- digit
minute").Closely associated is a yet more difficult concept, One-Touch Exchange of Die,
(OTED), which says changeovers can and should take less than 100 seconds. A die is a tool
used in manufacturing. However SMED's utility of is not limited to manufacturing

Value Stream Mapping • Value stream mapping is a lean-management method for analyzing
the current state and designing a future state for the series of events that take a product or
service from its beginning through to the customer. At Toyota, it is known as "material and
information flow mapping". It can be applied to nearly any value chain.

Hines and Rich (1997) defined seven value stream mapping tools they are:

• Process Activity Mapping • Supply chain responsiveness matrix • Product Variety Funnel •
Quality filter mapping • Forrester effect mapping • Decision point analysis • Overall Structure
Maps

Business process mapping

• Business process mapping refers to activities involved in defining what a business entity does,
who is responsible, to what standard a business process should be completed, and how the
success of a business process can be determined.
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• The main purpose behind business process mapping is to assist organizations in becoming
more efficient. A clear and detailed business process map or diagram allows outside firms to
come in and look at whether or not improvements can be made to the current process.

• Business process mapping takes a specific objective and helps to measure and compare that
objective alongside the entire organization's objectives to make sure that all processes are
aligned with the company's values and capabilities.

Root cause analysis 1. WHY? 2. WHY? 3. WHY? 4. WHY? 5. WHY? • Why did the machine
stop? Overload • Why was there an overload? Bearing was not lubricated • Why it was not
lubricated sufficiently? Lubrication pump was not pumping correctly • Why lubrication pump was
not pumping sufficiently? Because the pump shaft was broken • Why was the pump shaft
broken?

There was no strainer attached Shingo 1989…

3 principles behind World Class Manufacturing

• Just in Time or Lean Manufacturing • total quality • total preventative maintenance

Explanations:

1. The step by step elimination of waste. Waste in this sense is defined as any activity that adds
cost but not value to the end product such as excess production, stock, idle work in progress,
unnecessary movement and scrap.

2. A culture of intolerance to defects both in the processes and also information such as bills of
material and stock records. Total quality is often these days called Six Sigma which uses total
quality and lean manufacturing techniques to attempt to reduce rejects to 3.4 per million parts
produced.

3. A preventative maintenance programme means that unplanned stoppages due to equipment

failure are minimised.

Seven keys to becoming a world-class manufacturer

The keys to success, in no particular order, are: 1) Reduce lead times 2) Speed time-to-market
3) Cut operations costs 4) Exceed customer expectations 5) Manage the global enterprise 6)
Streamline outsourcing processes 7) Improve business performance visibility

The Issues

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
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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.

WCM DEFINITION:

World Class Manufacturing: It is an operational strategy that, if implemented properly, will provide a new
dimension to competing: quickly introducing new customerized high quality products and delivering
them with unprecedented lead times, swift decisions, and manufacturing products with high velocity.
Five levels that lead to world-class operations

• level 1: business and operations strategy • level 2: organization design, human resources, technology,
and performance measurement • level 3: information systems, management direction, and operations
capabilities • level 4: quality • level 5: customer service • level 6: ??????? WCM…

World Class Manufacturing - International Scenario and Indian Scenario India represents an
economic opportunity on a massive scale: China and India are likely to be the world’s two biggest
economies by mid-century, and although India has underperformed in the first lap of the growth race,
there is a strong possibility that India may well move ahead. Although India is still seen by industrial
investors as an economy where risk is higher and the business environment more problematic than in
rival Asian investment locations, India also offers some advantages in the region. The legal framework
that protects investment is one of the best in Asia. The economy offers an abundance of technical and
managerial talent, often with international experience. Geopolitical risk is diminishing consistently, in
contrast with some of India’s emerging economy rivals in Asia. And above all, India has a demographic
advantage that should see its working age population continue to grow well into the century, increasing
wealth and reducing cost.

The companies range from Bharat Forge, Bajaj, and Tata in the auto sector to Larsen & Toubro and
Godrej & Boyce in specialist engineering, Ballapur Industries in paper, and others in pharmaceuticals
and textiles, as well as Moser Baer. And they are showing that India is beginning to shrug off its
reputation for appalling quality and reliability, and that it can compete internationally. India is also
emerging as an outsourcing design and production base for manufacturing, as it has been for software,
with most of the world's autos companies - and many others such as Finland's Nokia and Taiwan's
Foxconn in mobile phones - sourcing components and assembling products. After the IT boom, a
manufacturing revolution has been well underway in the Indian economy, spurred on by the increasing
presence of multinationals, scaling up of operations by the domestic companies and expanding
domestic market. Consequently, manufacturers from across the world are transforming India--which has
all the required skills in process, product, and capital engineering, thanks to its long manufacturing
history and higher-education system--into a potential manufacturing powerhouse. "Every major
company has India on its radar screen," says Wharton Professor of Management, Saikat Chaudhuri.
And the number of companies, spanning diverse industries, planning to make India their global hub for
host of operations has only been increasing by the day

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Manufacturing Excellence

Indian companies are also becoming renowned for their adherence to global quality standards.
Already, India is amongst the countries with the highest tally for 2007 with total TPM Excellence Awards
-- conferred by the Japan Institute of Plant Maintenance –winners standing at 111. It can also proudly
claim to have 15 Deming award-winning companies (amongst the highest tallies worldwide outside
Japan), and one Japan Quality Medal winner. The industry has also been on the path of continuously
increasing its productivity levels. In the changed globalize business environment, it is no more feasible
to compete only on the basis of costs without paying attention to the real customer preferences
represented by other product dimensions. Consequently, many new manufacturing approaches have
emerged over the recent time mostly as the reaction to dynamically changing situation on the market
place, where increased competition and market globalization greatly affected the distribution of the
market share and the profit margins. These new approaches to manufacturing are based on a
pragmatic philosophy distilled from worldwide experience in manufacturing. Manufacturing Excellence
could be attained by a combination of several approaches to manufacturing such as the following Hall,
1987). i) Value-added manufacturing, which means do nothing that does not add value to the product or
to the customer. ii) Continuous Improvement manufacturing, which suggests that every aspect of
manufacturing is dedicated to making it better in ways great and small; and iii) Just-in-time (JIT / TOTAL
Quality Control) World class manufacturing was the goal of achieving and /or sustaining world class
competitiveness through manufacturing excellence attained through best practices. In this context,
different experts have expressed the goal and necessary practices for world class manufacturing
differently but always with the implicit goal of sustained competitiveness in the global market place.

AGENDA FOR INDIAN MANUFACTURING SECTOR

Based on current assessment of Problems of Indian manufacturers, the Infrastructure available in the
country, the Indian industry experiences and capability and national economical priorities, it would be
appropriate to work on following lines: - Substantial increase in R &D expenditure to the tune of 5% of
GDP with matching investments from Indian manufacturing sector (over next 3 years) - Privatization of
Research in India and dismantling of University research in its present form, which is worthless.
Opening of Several IIT like Institutes, Increasing capacity to five times of the present. - Strengthening of
Tool Room sector and Specific Industrial Product development and testing centers, to strengthen SMEs
base which is important both for exports and employment generation - Expeditious privatization of
Power Sector and raising National power generation load factor to 90% - Focus on following sectors in
first phase of 10 years: Textiles and Garment Industry, Pharmaceuticals, Machine tools, Automobiles
(Passengers and Commercial), Software products (not development contracts), Leather Industry, Food
processing and Horticulture, Primary metallurgy including Steel and Aluminum, Defense equipment and
Jewellary. - Strategic marketing alliances with world class trading companies with pro active role of
Ministry of commerce - Right combination of Indigenous technology and the Bought out technology,
with the former having at least 25% component (Eventually to become 75% and 25% respectively) -
Developing product based industrial clusters with international level facilities and Regulations in place of
present mixed and diluted economic zones like SEZs and EPZs. - Intensified investment in
infrastructure sector taking the benefits to B class city level. - Encourage movement of Skilled Labor
and technologists into and out of the country

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