Manufacturing Excellence: Excellence, Then, Is Not An Act But A Habit
Manufacturing Excellence: Excellence, Then, Is Not An Act But A Habit
Manufacturing Excellence: Excellence, Then, Is Not An Act But A Habit
- Aristotle
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History:
Traditional Indian skills in metallurgy, construction, textiles, surgery,
shipbuilding were an integral part of our innovation in ancient and
medieval times. Metal icons, monuments like Tajmahal etc. are the
witness.
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Past
Manufacturing in India was characterized by low volume operations,
process layout shops, use of general purpose machines, very
limited use of advanced methods of manufacturing (like EDM,
LASER machining etc.), inspection as methods of quality control,
use of simple planning tools like bar charts, work force motivated
through achievement, remuneration of personnel mostly on fixed
basis, stable employment with little mobilization, organized centrally
at enterprise level, offering medium level quality of goods at low
prices, marketing in protected environment. Most the manufacturing
was carried out by Public Sector Enterprises except in Automobile &
Steel sector : M/S Hindustan Motors, Premier Automobiles, TISCO
etc.,
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This has been graduated to manufacture of machine tools in India
(M/S Hindustan Machine Tools Ltd.,) which are the prerequisite for
any manufacturing; Training of operators, process capability studies,
Statistical Process Control in QC, use of quantitative/Analytical
approach in operations management, Work measurement, Incentive
plans for work men, subcontracting of work requiring low skills and
less costlier, management process through planning, organizing,
staffing, monitoring, control; MORE. The approach is functional
management.
4
Present
Manufacturing is characterized by medium level of Automation,
limited use of Special purpose machines/CNC machines and
Robos, product layouts, flexible manufacturing systems, and quality
certification – ISO, TQM etc. Product organization is generally
resorted to. Technology collaboration, better production systems:
Product & cellular layouts, use of computers in Engineering,
Planning and Manufacturing to some extent.
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Manufacturing is an important phase in the economic
path. India can not skip manufacturing stage of
development and go directly to services.
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Share of Manufacturing in GDP
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Past 1997 Core Technologies 2020
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Why do we lack excellence in Manufacturing?
Manufacturing is not confined to conversion process,
nor limited to the activities of shop floor but the whole
spectrum of activities between identification of
customer needs; translate into product and satisfying
them.
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• Lack of integration between operations system design
and system operation.
• Work ethos: self discipline, constant practice of good
habits, high levels of commitment, orderliness, house
keeping and work environment.
• Quality: Important attribute which determines
customer satisfaction and competitiveness - In
adequate attention
• We are not short of techniques. We are short of
motivation of managers and workforce.
• Generic issues such as lack of proper infrastructure,
higher transaction cost, higher interest rates,
inadequate power, regulatory issues also need to be
addressed at the policy making level. These issues
are taken up by NMCC.
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Manufacturing Challenge Enabling Technology & Methods
1. Achieve concurrency in all Calls for team work, interaction at all levels
operations. Concurrency of organizations. Simultaneous Engineering,
means planning; design & multicultural & multidisciplinary participation,
development and Quality Function Deployment (QFD).
implementation will be * Consumer product
done parallel to reduce Present : 6-9 months
time to market. Concurrent method: few weeks of
conception
* Large Product Present: Years
Concurrent: Within Months
*Micro Processor Design
Concurrent: 2 months design + 1month for
Fabrication.
System modeling Capacity: Enterprise wide
Planning, Adoptable processes and
equipment 13
Manufacturing Challenge Enabling Technology & Methods
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Manufacturing Challenge Enabling Technology &Methods
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Manufacturing Challenge Enabling Technology &Methods
Environment conscious
manufacturing will evaluate waste
production & recycling in each
step of conversion process.
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Manufacturing Challenge Enabling Technology &Methods
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World Class Manufacturing
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Organizational excellence is the result of innovation and resource
efficiency. We need to be innovative in technology development and
new products, promotion of new policies and market development,
alert to competitor moves and manage resources like materials, men,
machines, money efficiently and effectively and achieve optimal
performance. In order to achieve this we have to overcome the
strategic uncertainties and manage resource tensions efficiently.
Organizations have to formulate marketing, product and manufacturing
strategies to attain world class performance. World class means being
the best in your field in the world in terms of design, engineering,
manufacturing,, quality, lead times and customer service.
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In the three ranges of time it is naturally
hardest to get people about the long term
vision of a more sustainable world, but it is
vital that we overcome the reluctance to make
a developed country.
• New Markets
• New Competitors
• Changes in Technology
• Policy changes
• Political & social environment
• Remedies
• New Technologies/New Products (continuous innovation)
• Technology Sourcing
• Export
• T.Q.M./ Quality circles
• Wide Angle Environment Scanning
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Resource Tensions
• Raw Materials
• Facilities
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Strategic Response to Resource Tensions
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For better productive performance
• More customization
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Production System
Feedback
Control
Production system lays down the basic frame work for analytical
approach to production management
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What is World Class Manufacturing?
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WORLD CLASS PERFORMANCES:
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Key factors in World Class
Manufacturing
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It is generally felt planning is OK. We are not
short of techniques. We are short of: motivated
managers, ability to select an appropriate
technique, ability to implement the techniques
properly. Getting resources at the correct time is
a problem. Lead time management.
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JIT Characteristics
• Accurate demand forecast
• Low inventories
• Small lot sizes
• Quick/low cost setups
• Layout: Product layout/Cellular layout
• Multifunctional workers
• Multi pronged approach: Workers responsible for checking their quality, build quality at design stage, vendors to
provide high quality materials and parts.
• Team Spirit
• Reliable vendors
• Push pull system
• Problem Solving
• Continuous improvement
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Negative aspects
• Operators resistance for high quality
• No buffer stock. Poor quality can cause
shut down of entire line
• Training costs: time and money
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TQM
1 2
Understand
Meet this
Customer
Requirement
Requirement
4 3
Continue Measure
Improvement Success
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TQM
Principles of TQM
– Right First Time
– Competitive bench marking
– Involvement of people
– Team work and synergy
– Training
– Internal customers
TQM is conviction. Aims at attitudinal
change than emphasizing the system as in
ISO 9000. TQM is fully satisfying agreed
customer requirement at lowest internal cost.
Quality is everybody’s jobs.
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The Way Forward – Key Recommendations
National Manufacturing Competitiveness Council (NMCC) is setting
priorities and manufacturing excellence as national goal and has
brought out draft report on “National Strategy for Manufacturing”.
The National Strategy for Manufacturing has identified the
following priority areas of policy intervention:
- Developing capabilities for turning out advanced technology
products and need for investing high technology areas.
- Entrepreneurship Promotion.
- Improving quality of scientific education.
- Skill building. Vocational training in the context of skill shortage.
- Infrastructure enabling building facilities.
The challenges Indian manufacturing is facing warrant appropriate
responses from both government as well as industry
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Key recommendations: Government would need to deal with the
following principle challenges.
- Ensuring macro economic stability including containment of core
inflation
- Ensuring cost competitiveness and stimulating domestic demand
- Strengthening education & skill building
- Investing in innovations & technology
- Enabling speedy development of infrastructure
- Providing right market framework & regulatory environment to
reduce transaction costs.
- Reduction in direct and indirect taxes
- Ensuring effective coordination between Central, State and Local
levels.
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- Reforming Labor Laws
- Identifying and training manufacturing visionaries
- Creating a standing mechanism for resolving manufacturing policy
issues.
- Enabling Small & Medium Enterprises (SMEs) to achieve
competitiveness
- Skill-Intensive Growth: we need to continue to focus on skill-
intensive production processes to have an edge to global market.
- The SME’s role can be improved if they could reposition their role as
the backbone of the manufacturing sector. Enabling Public Sector
Enterprises (PSEs) to meet competitive market conditions.
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The Industry needs to deal with the following Challenges:
- Investing in R&D and technology
- Showing a continuing commitment to skills development &
knowledge enhancement
- Adopting global standards and Benchmarking their performance
against the best in the class
- Adopting best manufacturing practices & production techniques
- Increasing the scale of operations and delivering on globally
acceptable quality levels
The manufacturing sector in India needs to access the vast market
possibility available at the bottom of the income pyramid in the
country.
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Future Manufacturing
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• Networking in Entrepreneurship: Entrepreneurship- this requires
networking among organizations/people from R&D, Industry,
Consultants, and Exporters.
• In India we have lot of SMEs. We need to help them in reorienting
them speedily for different product ranges, production processes
keeping Indian & Export market in view.
• We can not limit to application software. Have to move further to
software design, advanced software design in manufacturing,
communications, health care etc.
• Tremendous pressure to customized products
• Reconfiguring enterprises rapidly, virtual organizations
• Zero defect quality.
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Simultaneous Engineering
Objective: Shortening new product development to market
introduction and survive global competition
Concept: Conceptual design and product planning advanced
engineering, product engineering, process engineering and pilot run
production are carried out simultaneously to compress the overall
cycle time.
- Task force system
- Concept of guest engineers
- Over the fence engineering wastes time inhabits communication
and foster late changes
- Enhancing design, boosting with CAD CAM
- Vendors become customer driven (involved at design stage)
- Quality Function Deployment (QFD)
- Design for manufacturability (DFM)
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Strategies for World Class organization:
• Knowledge of global economy
• Product differentiation
• Obsession with quality
• Developing the most professional employees
• Innovation
• World Class leadership
• Problem ranking process
• Bench marking
• waste reduction thinking
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Strategies for World Class Manufacturing
Single Data Base (SDB) To make process eco-
that includes design, friendly
methods,
quality/instructions, BOM,
etc.
Multi-skill Development Customer centric. More
customization
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SIMULTANEOUS ENGINEERING
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Traditionally a series of sequential steps are followed to
design the product, identify manufacturing process,
assemble, test & ship to market place.
Sequential Engineering
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Product Definition Marketing Strategy Product Design
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Benefits of simultaneous engineering are
• Quality is built in
• Engineering changes are reduced
• New product times cut by 75%
• Assembly times cut by 50%.
• Reduced piece parts
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Need for Change: The first step is to recognize the need
for change. Simultaneous engineering
requires a major shift in the culture of a company.
A comprehensive approach
Between 60% to 80% of the cost of a product is
committed at the design stage. As a first target, the overall
time to bring a new product to market from concept must
be cut by at least 25-35% to compete globally.
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Enhancing Design
• Over-the-fence engineering wastes time, inhibits
communication and fosters late changes
• Too many changes come too late at too great a cost with
over-the fence engineering
• Important tool used by the team is Quality Function
Deployment (QFD). QFD ensures the product meets
exactly the customer's requirements.
• It also results in the design being specified at an early
stage, thus allowing changes to be made earlier.
Vendors become customer driven
• For successful simultaneous engineering, key equipment
and component vendors must be part of the team
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Total quality becomes reality
• Guarantee quality by design
• Quality begins with engineering and off-line quality
control
• On-line control is the last stage
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Maintenance Management
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Equipment malfunctions in Manufacturing and
service industries have a direct impact on
• Production capacity. Machines idled by machine break
downs cannot produce: thus capacity of the system is
reduced
• Product and service quality. Poorly maintained
equipment produces low-quality products.
• Employee or customer safety. Worn-out equipment is
likely to fail at any moment, and these failures can cause
injuries to workers.
• Customer Satisfaction. When production equipment
breaks down, products often cannot be produced
according to the master production schedules. This
means that customers may not receive products when
promised.
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Trends in maintenance
• Special Programs to maintenance workers
• Subcontracting service companies
• Use of Computers in
- Scheduling maintenance projects
- Maintenance cost reports by production department
- Inventory status reports for maintenance parts and
supplies
- Parts failures data
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Best Practices in Maintenance
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• Preventive Maintenance
• Predictive Maintenance
• Purchasing
• Pro-Active Maintenance
• Accountability
Overview Indicators
Routine Maintenance Indicators
Equipment Performance Indicators
• Reliability Centered Maintenance
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WHAT WORLD-CLASS COMPANIES DO
• World-class companies give much of the responsibility
for repairs and preventive maintenance to workers