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BUSINESS EXCELLENCE THROUGH MANUFACTURING
EXCELLENCE
2
WHY MFG EXCELLENCE LEADS TO BUSINESS EXCELLENCE?
1. TO ESTABLISH THE LINK BETWEEN OPERATIONAL EXCELLENCE AND CUSTOMER SATISFACTION & COMPETITIVE ADVANTAGE
2. TO ESTABLISH THE UNIVERSAL NATURE OF THE VARIOUS WORLD CLASS MANUFACTURING PRACTICES FOR VARYING INDUSTRY NEEDS
3. TO EMPHASISE HOW BEST PRACTICES CAN BE SUSTAINED THROUGH EMPLOYEE INVOLVEMENT ACROSS FUNCTIONS
MANUFACTURINGEXCELLENCE
BUSINESSEXCELLENCE
3
THE THREE GOALS OF MANUFACTURING-QDC
Customer expectation is three fold: QDC QUALITY DELIVERY COST
Customer is satisfied
The Firm’s response should be: BFC BETTER FASTER CHEAPER
Firm develops competitive advantage
QUALITY-Better
DELIVERY-
FasterCOST-
Cheaper
firmcustomer
4
“BUILDING A CHAIN OF CUSTOMERS”
Business enterprise is a chain of customers DESIGN TO SERVICE
Integration of operational excellence to strategic goals of a business enterprise
QDC
QDC
QDC
Design&Dev
SupplyChain
Sales& Service
5
QDC DEFINITIONS & CONCEPTS
QUALITY It is “conformance to customers requirements” Its target is “zero defect” Its measure is “cost of nonconformance” Its system is “prevention”DELIVERY Meeting the promised time Delivering by expected time Crashing leadtimes & cycletimes Meeting schedulesCOST Value derived by customer Driver of Competitive advantage Nonvalue adding activities(NVA)-Waste
QUALITY-Better
DELIVERY-
FasterCOST-
Cheaper
firmCUSTOMER
6
EXCELLENCE IN EFFECTIVENESS & EFFICIENCY-EEE & QDC
EFFECTIVENESS-Q &D Fulfillment of External purpose of the
firm Do the right things
EFFICIENCY-C Internal purpose of the firm Do things right Resource deployment Resource Utilisation
EEE measures Business as well as Operational Excellence
EFFECTIVENESS
CUSTOMER GOALS
EFFICIENCY
FIRM’S GOALS
Q&D C
Balancing Act Of QD &C
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COMPETITIVE STRATEGIES AND QDC
Unique and Intense
Q &D performance leads to DIFFERENTIATION STRATEGY
Unique and Intense
C performance leads to
COST LEADERSHIP STRATEGY
Differentiation strategy
Cost Leadership StrategyD
IVE
RS
IFIE
D FO
CU
SS
ED
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IMPROVEMENT ;INTERNAL CONSISTENCY
Improve over time Firm’s own past record
Improve over space Competitive benchmark
Leadtime reductionWaste Reduction Quality improvement
All three can go hand in handStress at nodes can be relieved through Kaizen
Mutual Forces & Stress at Nodal points
9
World Class Manufacturing & QDC
QUALITY QA,TQC,TQM, ISO ZD,COQ,PDCA, 6
DELIVERY SCM, ERP CELL, JIT,KANBAN
COST 5S,VE,WoW Value Chain, Cost drivers TCM,LEAN,TPM
UMBRELLA OF WCM
10
JIT, CELL MFG & QDC
3 JIT CONCEPTS PULL: Kanban SMALL LOTSIZE: Single Pc Flow FLOW: No online buffers
3 CELL benefits Q: Dynamic & Autonomous quality
correction D: Shorter throughputs C: Lower rework, Higher productivity
CELL MFG
11
KAIZEN & QDC
Man
Machine
Material
Method
QUALITY-MURA
DELIVERY-MURI COST-MUDA
4Mx3mu=12 point improvement opportunity
12
Thank you