Introduction to World-Class Manufacturing

World-Class manufacturing was the term introduced for referring to the goal of achieving and/or
sustaining World-Class competitiveness through manufacturing excellence, attained through best
practices. World Class Manufacturing is a set of concepts, policies, techniques, and principles for
operating and managing a manufacturing company. The concept of World Class Manufacturing is
based on the positive results achieved by Japanese Manufacturing companies after World War II.
These manufacturing processes focus on continual improvement in quality, cost, lead time, flexibility,
and customer service. i.e. World class manufacturing is a collection of concepts, which set standard for
production and manufacturing for another organization to follow. Japanese manufacturing is credited
with pioneer in concept of world-class manufacturing. World class manufacturing was introduced in the
automobile, electronic and steel industry.

World Class Manufacturing is a process-driven approach that generally involves implementing the
following philosophies and techniques:  Make-to-order  Streamlined flow  Small lot sizes  Families
of parts  Doing it right the first time  Cellular manufacturing  Total preventive maintenance  Quick
changeover  Zero Defects  Just-in-time  Variability reduction  Employee involvement  Cross
functional teams  Multi-skilled employees  Visual signals  Statistical process control

To achieve world-class status, companies must change procedures and concepts, which lead to
reconstructing relationships with suppliers, purchasers, producers, and customers.

10 pillars of world class manufacturing

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1. Safety

It is a technical pillar that involves continuous improvement of working environment and reduction of
factors generating accidents and dangerous occurrences. The aim of SAFETY pillar is to eliminate
accidents. It requires more intense preventive actions, continuous improvement of ergonomics in the
workplace and skills and qualifications necessary to eliminate potential hazardous events and
accidents.

Continuous improvement of safety, To reduce drastically the number of accidents. To develop a culture
of prevention. To improve the ergonomics of the workplace. To develop specific professional skills.

2.Cost Deployment

Manufacturer, as part of COST DEPLOYMENT pillar, for company's management analysis/audit has to
introduce an effective plan of waste reduction where such activities can bring substantial benefits. It is
necessary to develop an improvement program that will lead to a reduction of waste. There are
activities carried out in order to identify waste, determine the place of their production, valuate them,
identify elimination methods and expected results.

Analysis of the losses and costs (losses within the costs), To identify scientifically and systematically the
main items of loss in the system production-logistics business. To quantify the potential economic
benefits and expected. To address the resources and commitment to managerial tasks with greatest
potentia

3.Focused Improvement

The purpose of this pillar is to eliminate major waste identified previously within the Cost Deployment
pillar. This way organizations do not exploit resources for problematic issues of minor priority.
Corrective actions are targeted and have to lead to a final problem solving and restore or introduce a
new, specific standard. This work should be carried out periodically because of its unique nature. The
aim of this pillar is to achieve waste reduction in the production system and eliminate activities not
generating value added and therefore not likely to increase the cost competitiveness of the product.

Priorities of actions to management the loss identified by the cost deployment To reduce drastically the
most important losses present in the system manufacturing plant, eliminating inefficiencies. To eliminate
non-value-added activities, in order to increase the competitiveness of the cost of the product. To
develop specific professional skills of problem solving.

4.Autonomous Maintenance

As machinery and equipment often operate in poor conditions and never work at full capacity this pillar
becomes really important. The aim of this pillar is to improve the efficiency of the global production
system by: •Restoration of a mechanical device or equipment to its original state and maintaining its
initial technical parameters to prevent deterioration,•Increased involvement of production staff and
development of a co-operation system favourable for both machine operators and maintenance service
staff, •Development of technical skills and qualifications. All above mentioned activities must be
supported by skills development. Furthermore, this pillar is also responsible for the proper organization
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of the workplace (Workplace Organization), efficiency improvement and getting the productivity of the
production system up.

Continuous improvement of plant and workplace It is constituted by two pillars: AM Autonomous

Maintenance. It is used to improve the overall efficiency of the production system through maintenance
policies through the conductors (equipment specialists). WO Workplace Organization. It is develops to
determine an improvement in the workplace, because often the materials and equipment are degrade;
in particular because in the process there are many losses (MUDA)to remove.

5.Professional Maintenance

Scope of activities associated with this pillar is a result of the number of failures that occur in many
systems, lack of systematic preventive measures and poor co-operation between machine operators
and the maintenance service staff. Main activities under this pillar focus on: control and failure cause
analysis, further qualifications of maintenance service staff, collaboration with staff members
responsible for Autonomous Maintenance, etc.

Continuous improvement of downtime and failures To increase the efficiency of the machines using
failure analysis techniques. To facilitate the cooperation between conductors (equipment specialists)
and maintainers (maintenance people) to reach zero breakdowns.

6.Quality Control

Despite many preventive measures taken there are always situations when customers are not satisfied
with our products or services. This reflects the importance of this pillar. Defects are found and the cost
of rejected products becomes a considerable expense for the company. This pillar is generally designed
to provide customers with high quality products at minimal cost, to develop proper operating conditions
for production systems and to increase quality problem solving skills of staff members.

Continuous improvement of customers’ needs To ensure quality products. To reduce non-compliance.

To increase the skills of the employees.

7.Logistic & Customer Service

Large stocks or a necessity to reschedule production due to raw material shortages are usually the
reason for performing tasks being a part of this element of WCM concepts. The aim is to create
favorable conditions for the flow of materials within the company and between the suppliers and the
plant, reduce inventory level, minimize the amount of displacement, reducethe number of kilometres
and transit time inside the company and from direct suppliers, integrated purchase, production and
sales network. Main activities are based on the Value Stream Mapping in order to determine existing
inventory shortages and the possibility of their removal.

Optimization of stocks To reduce significantly the levels of stocks. To minimize the material handling,
even with direct deliveries from suppliers to the assembly line.
8.Early Equipment Management

Activities being a part of this pillar are usually undertaken if the start-up time of new equipment exceeds
the initial settlements. Efficient implementation of this kind of work allows for cost optimization and loss
elimination resulting from inactivity period. In addition, the pillar covers activities related to early
equipment management during the product development process through a special revision of the
model (Design Review), specification of technical requirements for submitting a tender and supplies
consistent with the requirements of the user.

Optimization of installation time and costs and optimization of features of new products To put in place
new plants as scheduled. To ensure a rapid start-up and stable. To reduce the Life Cycle Cost (LCC).
To design systems easily maintained and inspected.

9.People Development

Activities within this pillar are to ensure, through a structured system of training, appropriate skills and
qualifications for every job position. In addition, maintenance service staff and technicians are prepared
to train later other employees. There should be also knowledge and operational skills documentation
system in place.

Continuous improvement of the skills of employees and workers To ensure, through a structured
system of training, correct skills and abilities for each workstation. To develop the roles of maintenance
workers, technologists, specialists such as major staff training.

10.Environment

The tenth pillar is used to meet the environmental management requirements (compliance with the
requirements and standards of the environmental management), continuous improvement of the
working environment, etc. The main activities include: periodic internal audits verifying the impact of the
plant on the surrounding environment, risk identification and prevention, use of ISO 14000 standard and
a variety of technical improvements such as production site improvements. Manufacturing has evolved
considerably since the advent of industrial revolution. In current global and competitive age, it is very
important for organization to have manufacturing practice which is lean, efficient, cost-effective and
flexible.World class manufacturing is a collection of concepts, which set standard for production and
manufacturing for another organization to follow. Japanese manufacturing is credited with pioneer in
concept of world-class manufacturing. World class manufacturing was introduced in the automobile,
electronic and steel industry.

Continuous improvement environmental management and reduce energy waste To comply with the
requirements and standards of environmental management. To develop an energy culture and to
reduce the energy costs and losses.

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There are seven keys to becoming a world-class manufacturer:

1. Reduce lead times 2. Speed time-to-market 3. Streamline outsourcing processes
4. Cut operations costs 5. Exceed customer expectations 6. Manage the global
enterprise 7. Improve business performance visibility Companies using World Class
Manufacturing strategies focus on improving operations, eliminating waste, and
creating Lean organizations, which often results in higher productivity. These
companies also focus on setting new standards for speed from order capture
through 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 Manufacturers
World class manufacturers tend to implement best practices and also invent new
practices as to stay above the rest in the manufacturing sector. The main
parameters which determine world-class manufacturers are quality, cost effective,
flexibility and innovation. World class manufacturers implement robust control
techniques but there are five steps, which will make the system efficient. These five
steps are as follows:

 Reduction of set up time and in tuning of machinery: It is important that

organizations are able to cut back time in setting up machinery and also tune
machinery before production.

 Cellular Manufacturing: It is important that production processes are divided into

according to its nature, with similar nature combined together.

 Reduce WIP material: It is normal tendency of manufacturing organization to

maintain high levels of WIP material. Increased WIP leads to more cost and
decreased WIP induces more focus on production and fast movement of goods.

 Postpone product mutation: For to achieve a higher degree of customization

many changes are made to final product. However, it is important that mutation
conceived for the design stage implement only after final operation
 Removal the trivial many and focus on vital few: It is important for organization
to focus on production of products which are lined with forecast demand as to match
customer expectation.

Principles of World Class Manufacturing

There are three main principles, which drive world-class manufacturing. 

Implementation of just in time and lean management leads to reduction in wastage
thereby reduction in cost.  Implementation of total quality management leads to
reduction of defects and encourages zero tolerance towards defects. 
Implementation of total preventive maintenance leads to any stoppage of production
through mechanical failure.

 Aspects of World Class Manufacturing

The main aspects of the world-class manufacturing are as follows:  Industrial

culture area  Market/client area  Product development area  Operations area 
E-Performance area

 Characteristics of world class organizations

1. Customer service. 2. Quality control and assurance. 3. Research and
development/ new product development 4. Acquiring new technologies 5. Innovation
6. Team-based approach (adopting and using effectively) 7. Best practices (study
and use of) 8. Manpower planning 9. Environmentally sound practices 10. Business
partnerships and alliances 11. Reengineering of processes 12. Mergers and
acquisitions 13. Outsourcing and contracting 6 14. Reliance on consulting services
15. Political lobbying

 How to make an organization world class? Worker productivity

(improvement) 2. Employee training and development 3. Open communication
between management and employees 4. Employee benefits and perquisites 5.
Codes of workplace conduct 6. Conflict resolution 7. Employee satisfaction 8.
Flextime arrangements 9. Management-employee-union relations 10. Child care

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