Gunns Model for World

Class Manufacturing

Presented by: Group 2

Name
Roll No.
Mrugank Hathi
029
Sagar Yerunkar 061
Tushar Kothavale 130

Agenda

What is a WCM
Environment?
Sophisticated
Global
Faster
Emphasis
Pace/Scope
Manufacturing
on Product
Customers
of Activities
Quality
Systems

Gunns Model - WCM

Manufacturing for Competitive

Advantage Framework Arthur Young
Global
Competitors

World Class
Manufacturin
g

Global
Markets

Quality/
Human
Resources/
Technology/
Planning

Management
Resource

Customers

Product and
Process
Design/
Planning
and
Control/
Production/
Distribution
/
Service
JIT

| TQC | CIM

Integrated
Manufacturing

Strategic
Vision

Suppliers

Total Quality Control

Total Quality
Controlis an effective
system for integrating the
quality development,
quality maintenance, and
quality improvement
efforts of the various
groups in an organization
so as to enable production
and service at the most
economical levels which
allow full customer

TQC TQM

A set of activities with total

involvement of all concerned ,
interlinked into continuously
improving processes,
producing products and
services, fulfilling customers
stated and implied needs
with maximization of internal
revenue towards attainment of
quantifiable and measurable
quality objectives in time

Computer Integrated Manufacturing

Design/Mfg
Supporting
System
Machine
Tools

Materials
Handling
System

CAD

NC

CAE

DNC

CNC
FM
S

Automated
Warehousing
System

Robots

A-FMS

Computer Integrated Manufacturing

Design/Mfg
Supporting
System
Machine
Tools

CAD

NC

CAE

DNC

CIM

CNC
FMS

Materials
Handling
System

Automated
Warehousing
System

A-FMS

Robots

Just In Time (JIT)

Time
3 Elements of JIT:
Takt time:
Net working time divided by
the number of units ordered
for that time
One piece flow:

Downstream flow:

Cost

COPQ

JIT Thinking
1. Sort
2. Straighten
3. Shine/
Sweep
4. Standardiz
e
5. Sustain

Quality at
the source
Quality &
inspection at
manufacturi
ng

Mistake
proofin
g

Aim:Zero
Defect
Trigger for pull system
Functions:
1. Autonomous
nervous system
2. Limit over
production
3. Visual
management
4. Kaizen Metric

Source: Just in time thinking principles- Productivity press

A system of
setup
reduction
and quick
changeover.

Case Study:
Case Background:

Outdated Manufacturing practices (1952-1990)

Floor Layout Parking lot (6 planes on left & right)
Variety of choices offered ranging from engine choice to
spring on the board in cockpit.
Operating system used 800 different computers for tracking
parts.
Co-ordination & communication problems
Re-computing parts requirements several times during production.
Worked well for mass production but, failed during customization.

Characterized by high costs & long production cycles.

Reputation for quality & on-time delivery suffered, several
technical snags.

Case Study:
In 1994 mfg process improvement initiative (DCAC/ MRM- Define
& Control Airplane Configuration/ Manufacturing Resource
Management)

Improved mfg process

Reduced cycle time, defects & costs
Complex took 2 years longer to implement than originally anticipated.
Failed to reap benefits:
Old mfg. procedures
Bureaucracy

August 1997 - launched price war with Airbus

Several orders
Problems: Raw material shortage, parts shortage, productivity
inefficiencies with recruitment of thousands of new employees
Serious disruption of process flow late shipment of parts increase
in overtime
Overtime cost = 30% total labor costs
Forced to shutdown 2 assy lines for 737 & 747 for month $1.6bn loss
Lost customers to Airbus

Decided to refocus on lean manufacturing

Case Study:

1996 Phil Condit as new CEO

4 Pronged strategy:

Fix the commercial aircraft divisions production problems.

Grow the higher margin defense and space division.
Regain Credibility on the Wall-Street.
Scrap Boeings paternalistic corporate culture.

Assessment process current business situation &

performance.
Formulated implementation plan -Airlines should order
airplanes
the way consumer order
automobiles
JIT
CIM
TQC

Formed a production
reform teams.
Reliance on
employees who
worked closely with
processes & products.
Conducted
Accelerated
Improvement
Workshop (AIW)
training, planning &

400 computer
programs (keep track
of parts, drawings)
4 interconnected
software packages
(manage
configuration, mfg,
purchasing,
inventory)
Boeing 777
paperless, 3D CAM

Autonomous
Maintenance
Workshops (AMW)
operators responsible
for daily care
Lean Manufacturing
Assessment (LMA)
workshops identify
improvements
Production
Preparation Process

Case Study:
Benefits:

Quantificati
Benefit
on
$7.5bn$
Inventory reduction
6.5bn
Manufacturing time reduction
60%
Manufacturing floor space
reduction
50%
Defects reduction
48%
Extending Lean Mfg:
2 18 per
Inventory
turnover
year
2000
Introduced
Moving Line
100 30
Moved planes from one assy team to next place slowly, keeping
WIP reduction
pieces
production at steady pace. (2 inches/ min)
Allowed employees to monitor production status any time.

Empowered workers to stop assy line when it fell behind schedule.

Arranged 30 feeder lines that worked parallel to main assy line.

Boeing aims to reduce average time from order to

delivery to 6 months

References

The illustrated lean agile and world class manufacturing by:

Francoise de Villiers

Case studies in Operations Management Volume 1, ICFAI

centre for management research, K. Subhadra.

JIT Implementation Manual, CRC Press, Hiroyuki Hirano

World Class Manufacturing A Strategic Perspective; Sahay,

Saxena, Kumar

Questions?

Thank You.