Friday, March 19, 2010

7 Steps to World Class Manufacturing

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 does it mean to be a world-class Manufacturer?
You are in in control—
·In control of your markets and customers
·In control of your processes &
·In control of your resources
Being in control doesn’t necessarily mean you make all the decisions, but it does mean you are prepared and will not be thrown by unexpected changes in demand, technology,circumstance or competition.



7 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

1. Focus on ‘Competitive Quality’
Today’s dynamic and turbulent business environment has shifted 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. Everybody in the organization must think and demonstrate that they can do better.The need of the hour is to constantly challenge the status-quoand develop a constructive level of dissatisfaction with the present performance

2. Implement Lean Manufacturing systems
Lean manufacturing is an overall methodology that 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 , quality improvement programs, pull systems and flexible work forces and production facilities. Principles of lean include zero waiting time, zero inventory, scheduling (internal customer pull instead of push system), batch to flow (cut batch sizes), line balancing and cutting actual process times.

3. Achieve cost efficiency
Although recent developments in planning and customer relationship management have focused 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 to maintain or gain market share. Costs are really just part of the scoreboard. When a company implements world-class operational processes, it improves multiple measurements simultaneously,including cost, lead times,inventory and customer service.

4. Reduce Time-to-Market
Customers now penalize suppliers that infringe on their time,
whether through delays, mistakes or inconveniences. Today’s
customers demand operations that are airborne, on-line and real-
time. Soon is not the answer the customers want to hear. They count the speed of response time as a Key Value Dimension.
Good ideas are not enough; well-managed processes for bringing
new products to market faster than the competitors can lead to
significant competitive advantages. Bringing products faster into
the market does represent some element of risk, which can be
properly evaluated.
Risk Analysis
Risk Management
Creativity & innovation
Time based competition
New product development
SCAMPER
Ten commandments of time
Niche Marketing

5. Exceed Customer Expectations
The ultimate key to success in any business enterprise is to please your customers. The most successful companies don’t just meet customer expectations, they exceed them and beat the competitionby setting the standards at a level that makes it difficult, if not impossible, for others to surpass.

6. Streamline Outsourcing ProcessesPrinciples
Outsourcing of manufacturing operations is a common practice today because it offers flexibility—the ability to change products or processes rapidly—and 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 goal is through partnershipswith companies that have attained superior capabilities in particular phases of the process-like production. By partnering with world-class contract manufacturers you can reap the benefits almost immediately—well-managed processes, high quality, on time deliveries—and increase your performance and deliver to meet your customer’s 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.

7. Have a Global perspective
There’s no question the world is shrinking, and virtually every business is now involved in some form of international trade—whether marketing and selling to customers in other countries or simply using parts or materials that are produced elsewhere. Customers today are looking for world class products. The companies wanting to become world class manufacturing must follow the international standards in quality. One of the best framework to follow in this regard is The Shingo Prizewhich is awarded to companies who have attained manufacturing excellence.

2 comments:

  1. Really explains everything in detail, the article is very interesting and effective. Thank you and good luck with the upcoming articles.What is World class Manufacturing

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  2. World Class Manufacturing - Explanation
    "A system of structured and integrated production that covers all the processes of the plant, the security environment, from maintenance to logistics and quality. The goal is to continuously improve production performance, seeking a progressive elimination of waste, in order to ensure product quality and maximum flexibility in responding to customer requests, through the involvement and motivation of the people working in the establishment." (Source: Fiat)

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