Proc. of the 1st International Conference on Modern Trends in Industrial Engineering, November 17-19, 2011 S.V.

National Institute of Technology, Surat 395 007, Gujarat, India

WORLD CLASS MA UFACTURI G MODELS: COMPARISO A D EVOLUTIO

R.Gandhi1, J.Mehta2, M.Patel3, T.N.Desai4
1,2,3,4

Department of Mechanical Engineering, National Institute of Technology, Surat, India

Abstract: Quality in manufacturing is no longer an option but mandatory for any company competing either on the
global scale or at the domestic level. World Class Manufacturing was introduced in around 1980 and has incorporated new principles and policies for production. These principles have also undergone modifications with time and still continue to do so. This paper deals in detail with the concept of World Class Manufacturing and its journey since inception. The paper gives a comparative study of the major proposed models of WCM and describes the evolution of the World Class Manufacturing Model. It shows how any organization needs to modify over time to continuously improve and attain high levels of performance in manufacturing.

Keywords: World Class Manufacturing, Evolution, Comparative Study. 1. INTRODUCTION

World class manufacturing is a set of production principles which were implemented after the 1970s to enhance productivity and profitability. The inherited pattern of mass production was trashed and an entirely new set of principles were developed. Companies had to be more competitive and this improved competitiveness in its broadest context was referred to as manufacturing excellence, and was deemed to be demonstrated by simultaneous improvements in manufacturing performance as well as business performance through indicators, such as productivity, cost reduction and market share in the world market[1]. The goals of WCM efforts include maintaining market share, improving profitability and improving the firms ability to compete in a global market place.

2. WORLD CLASS MANUFACTURING MODELS

The term world class manufacturing was first used by Hayes and Wheelwright in 1984. Since then, the concept has been embraced, expanded and enhanced by a number of authors, who have reinforced some of Hayes and Wheelwrights ideas, added some new practices and ignored others [2]. The phrase was publicized by Professor Richard Schonberger (as the title of his 1986 book) wherein he suggests the term as WCM nicely captures the breadth and essence of the fundamental changes taking place in industrial experiences. WCM soon replaced the mass manufacturing techniques and hence the most popular, extensive and widely used WCM models are shown in the form of a flow charts indicating, the goals of the WCM, the key focus/improvement areas and the pillars on which it is based. The proposed model at the end, integrates the best of all these various models as well as others, updates the model with the latest technology available at day and presents the model in the similar pattern

2.1 Halls WCM Model: According to Hall (1987), manufacturing excellence is attained by value-added manufacturing, which is based on the principle that purge anything that does not add value to the product or service, whether material, equipment, space, time, energy, systems, or human activity of any sort. These wastes as described by Shigeo fall into 7 different categories which are shown in the adjoining figure 1. The framework of value-added manufacturing is described in three overlaying categories of work: total quality, Just-in-time and people involvement. All three of these are mandatory to achieve world class manufacturing [3].

Figure 1: Halls WCM Model 2.2 Schonbergers WCM Model: According to Schonberger, the goal of World-Class

Manufacturing (WCM) is continual and rapid improvement. This type of improvement in the key focus areas like quality, cost and flexibility can enable one to compete at the global level. The WCM status can be achieved by any two parallel paths: the quality path, and the JIT production path. While the JIT philosophy advocates manufacturing in the smallest possible batch size, TQC precepts to do it right the first time. Following WCM means to produce only that much which will be required for that day. Producing more is costly and wasteful. Schonberger also believed that WCM efforts must help to market the product better. Cellular manufacturing and deviation reduction are equally important to achieve world class status [4]. Figure 2: Schonbergers WCM Model

2.3 Gunns WCM Model: Gunns Model of WCM (1987) rests on three pillars: Computer Integrated manufacturing (CIM), total quality control (TQC) and just-in-time (JIT) production methods. These are the three fundamental approaches in modern manufacturing, which may enable a manufacturer to gain competitive advantage for reaching World Class status. He proposes two different frames of reference for achieving business excellence: one is that of the global market and second of the global competitors. The integration of CIM, TQC and JIT is necessary to achieve business excellence [5].

Figure 3: Gunns WCM Model

2.4 Maskells WCM Model: According to Maskell, World Class manufacturing includes the following: a) A new approach to product quality b) JIT production techniques c) Change in workforce management d) Flexible Approach to Customer Requirements People management is a very essential component for attaining this highest stature. He proposes few new approaches for the same like transfer of responsibility to give operators greater control of their daily work, educating and giving cross training for better flexibility, quality circles for total employee involvement [6]. Figure 4: Gunns WCM Model 2.5 Americas Best Plants Model of WCM: The characteristics of World-class manufacturing are identified by three core strategies: customer focus, quality and agility. That is only the manufacturers which are able to change quickly, efficiently and effectively can become the best. This model identifies customers as the centre of a manufacturing operation. Next to the customer is the quality which is defined as defect free and waste free. Lastly, agility combines the philosophies of lean manufacturing and the techniques of JIT. The best plants are beyond merely manufacturing lines and provide value to the environment and the communities in which they operate [1]. Figure 5: Americas Best Plants WCM Model

2.6 Malcolm Baldridge ational Quality Award: This model identifies good management as essential for achieving a World Class competitive position in the

manufacturing sector. Excellence at the operational level must be given more attention. The Malcolm Baldridge award is used by many as a benchmarking tool and it has been built upon various core values and concepts which are clearly shown in the adjacent figure 6. This award offers a demanding competition and puts every company to the same stringent tests. It has created a common vocabulary and philosophy bridging companies and industries and it has made learning across the boundaries of businesses possible and desirable for the managers.

Figure 6: Malcolm Baldridge National Quality Award

After an analysis of the prevailing definition and explanations, the following four building blocks begin to emerge as encompassing attributes that are a practical, workable interpretation of World Class Manufacturing: i. Have very high levels of product and process quality: Anything less than excellent quality is not acceptable in the current scenario to be considered a World Class Manufacturer. ii. Involve all stakeholders: Involvement of everyone associated with the company is necessary and their inputs can be of utmost value at different times for a business. iii. Compete on the basis of time: Time is the key and a company should do whatever it does faster and with more flexibility compared to its competitors. iv. Innovate and practice continuous improvement in all aspects of business: Manufacturing companies must adopt a culture that is never complacent, never satisfied and never stops trying to improve. A company can successfully imbibe the culture to become a World Class Manufacturer by four sequential steps given as follows: i. Awareness: Each and every employee at every level must be aware of the goal to excel and become a world class manufacturer. It is a leadership initiative to suffuse the four attributes throughout the company. ii. Understanding: Just spreading awareness is not enough because there is no point without understanding the need for the process and hence training programs are an absolute must. The understanding should include how each building block impacts the business and the possible magnitude of the impact. iii. Acceptance: The organization and the employees should believe in the four building blocks individually and as a whole and must accept them as necessary and important in attaining the goal of becoming a World Class Manufacturer. iv. Implementation: The organization should put the concepts into everyday use. If this step is not performed after the first three steps, the whole exercise becomes pointless and it renders the effort useless. Hence, implementation is the final and the most important step in the journey towards becoming a World Class Manufacturing. Figure 7: Proposed WCM Model

The figure below shows the Journey of implementing WCM.

Vision and Strategy

Technological innovation, Organizational structuring or restructuring, Benchmarking

Total employee involvement through proper managerial direction

Continual improvement, Upgradation and development of a motivational culture

World Class Manufacturer

Figure 8

3. EVOLUTION OF WCM:
WCM found its roots in the book by Richard Schonberger named, World Class Manufacturing: the lessons of simplicity applied. That is exactly what WCM was and is, simplicity applied. WCM is an order or a manner of doing things; doing the right thing, at the right place, at the right time using the right method and the right people for the task. Faster, Higher, Stronger was the motto and a complete revamp was underway in how manufacturing activities were carried out. The overriding goal of WCM was summarized by this motto which came from latin: Citius, Altius, Fortius. Even better quality, ever quicker response, ever greater flexibility and ever higher value is another definition or explanation given by Dr. Schonberger. Being a World Class Manufacturing company means to be customer focused, employee driven and improve continuously. During the 1980s, Quality was the buzz word. Especially in the Indian context, Quality was something which wasnt ingrained in the producers or customers mind. Poor or low quality was accepted to an extent and the acceptance level was abysmally low. Then western philosophy which was influenced by the Japanese in turn came to India and quality infected the Indian Manufacturers too. Quality became a global phenomenon and every company started to stress on the quality of their products. Consumers also grew more aware and they expected better quality in the products they bought. In this process, the quality of products as a whole improved which was a win-win situation as producers moved towards manufacturing excellence and the customers got better quality products in return. Then, in the last decade of the 20th century, Quality became a pre-requisite. It was no longer a luxury but a necessity. Customers expected high quality from their suppliers and manufacturers also in turn delivered. Quality wasnt something unique any longer and the World Class Manufacturing model had to evolve accordingly. The focus shifted from just Quality to Customer Satisfaction. Customer was always in the purview but never in focus as he was now. In the late 1980s, electronic calendars and contact information systems were introduced to the broad business world as CRM (Customer relationship management) technology in its very infancy. Over the next decade, it gained momentum and soon companies began forayed into this field. Soon, a whole range of software was created, enabling just about any type of company to dabble in CRM. Companies looked to CRM to help them manage the life cycle of a sale, including all prospect, customer, supplier and partner interactions. Customer relationship management (CRM) technology must play a significant role in a customer-

centric business strategy. CRM should serve as a single collection point for all customer information and activities and a single access point of that information to employees and business partners. Applied wisely, CRM can manage all the aspects of customer acquisition as well as existing customer retention and growth, bringing together many of the components required to achieve world-class manufacturing status. Customer was in the limelight and every manufacturer strived to please the customer.

After this phase was ingratiated in the WCM model, it moved on to the next step of evolution. The next step was complete automation, customer delight and customization. This phase is still on and is here to stay for quite some time. In todays economic environment, enterprises that solely rely on traditional technologies cannot meet dynamic customer demands. Hence, proactive enterprises seek the application of intelligent and integrated manufacturing systems in order to meet the customers demands and be the winners in the competitive market. With available technologies and systems in Computer Integrated Manufacturing (CIM) and its related technologies, the application of CIM in manufacturing enterprises is a reality and can meet the need of the enterprises. Summary 1980s: QUALITY WAS THE BUZZ WORD 1990s, 2000s: CUSTOMER FOCUS

Now: AUTOMATION AND DELIGHT, CUSTOMIZATION

Conclusion: After an in depth analysis of the World Class Manufacturing and studying the various building blocks it can be concluded that World Class Manufacturing is not something that is stagnant. There is no perfect definition or bar that can categorize a company as a World Class Manufacturer. A company may be the best in its class today but if it stops improving and stagnates in the future then it ceases to be a World Class Manufacturer. WCM is a continuously modifying concept and any company which aims for being the best among its competitors and succeeds in doing it by delighting its customer is considered to be a World Class Manufacturer. References: [1] Kinni, T.B., America's best: Industry Week's Guide to world-class manufacturing plants, John Wiley, New York. [2] Roger G., Schroeder b, E. James Flynn, Barbara B. Flynn, World class manufacturing: An investigation of Hayes and Wheelwrights foundation, Journal of Operations Management 17_1999.249269. [3] Hall, R.W., Attaining Manufacturing Excellence, Dow Jones-Irwin, Homewood, Illinois, 1987 [4] Schonberger, Richard J., Japanese Manufacturing Techniques: New York, 1992. [5] Gunn T.G., Manufacturing for Competitive Advantage: Becoming a World Class Manufacturer, Ballinger Publishing, 1987 [6] Maskell, B. H., Performance Measurement for World Class Manufacturing, Productivity Press, Portland, Oregon. ine Hidden Lessons in Simplicity, The Free Press,