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WCM is a collection of concepts, techniques and philosophies, which set standards for production and
manufacturing for another organization to follow
World Class Manufacturing is a process-driven approach that generally involves implementing the
following philosophies and techniques:
Make-to-order
Streamlined flow
Small lot sizes
Families of parts
Doing it right the first time
Cellular manufacturing
Total preventive maintenance
Quick changeover
Zero Defects
Just-in-time production
Variability reduction
Employee involvement
Cross-functional teams (quality control circles)
Multi-skilled employees
Visual signals
Statistical process control
World class manufacturers tend to implement best practices and also invent new practices as to stay
above the rest in the manufacturing sector. The main parameters which determine world-class manufacturers are
quality, cost effective, flexibility and innovation.
World class manufacturers implement robust control techniques but there are five steps, which will
make the system efficient. These five steps are as follows:
Reduction of set up time and in tuning of machinery: It is important that organizations are able to cut
back time in setting up machinery and also tune machinery before production.
Cellular Manufacturing: It is important that production processes are divided into according to its nature,
with similar nature combined together.
Reduce WIP material: It is normal tendency of manufacturing organization to maintain high levels of
WIP material. Increased WIP leads to more cost and decreased WIP induces more focus on production
and fast movement of goods.
Postpone product mutation: For to achieve a higher degree of customization many changes are made to
final product. However, it is important that mutation conceived for the design stage implement only after
final operation.
Removal the trivial many and focus on vital few: It is important for organization to focus on production
of products which are lined with forecast demand as to match customer expectation.
Benefits of WCM
The benefits achieved through the implementation of WCM practices are as follows:
1. Improvement in quality
2. Improvement in productivity
3. Better communication
4. Reduced cost
5. Reduced paper work
6. Increased employee participation
7. Better innovations
8. Reduced waste
Factors Responsible for World Class Manufacturing Practices
There are a number of factors which are responsible for effective implementation of world class
manufacturing practices. These factors are very important as they make the implementation easier. Some of
these factors are listed below:
1. Top management commitment: Top management is very necessary for the implementation of any new
program. Top management of the organization should lay down the rules and regulations for the
effective implementation of a program.
2. Education and Training: Education and training is also an important aspect in the implementation of a
new management program. With the help of education and training, the employees get the knowledge of
basic concepts, implementation procedure of the program to be implemented.
3. Motivation and empowerment: Top management of the organization should motivate its employees to
effectively participate in the implementation of new quality program. Motivation can be in any form like
money, empowerment.
4. Proper leadership: Top management of the organization should give proper guidance for the effective
implementation of the new program.
5. Proper planning: The implementation of any management program depends upon the proper planning.
The next level, in the framework is integrated manufacturing. This has one dimension of the entire range
of activities, consisting of product and process design, to manufacturing planning and control, to the production,
process itself, to distribution, and to after-sales service and support; and the other dimension consisting of
customers and suppliers.
The framework also shows that the main interface from integrated manufacturing has been through the
distribution function. However, according to Gunn, all the five functions within manufacturing should be
engaged in an ongoing dialogue with their customers.
The fact that CIM, TQC, and IIT are shown together and equally under integrated manufacturing in the
framework, has some important implications. First, by showing CIM and JIT together, the indication is that
there is nothing mutually exclusive about the two, nor is there anything mutually exclusive between JIT
concepts and manufacturing resource planning (MRP), a part of CIM. Moreover, by showing all three together,
it is implied that all three must be addressed at once in any overall programmes to gain competitive advantage
in manufacturing.
The Manufacturing for Competitive Advantage framework provides a logically rigorous, complete and
yet easy-to-understand view of a global manufacturer's environment. It can be used as a means for discussion in
order to appraise whether the company is addressing all aspects of what it takes to become a world Class
manufacturer.
4. MASKELLS MODEL OF WORLD CLASS MANUFACTURING
According to Maskell, World-Class manufacturing generally includes the, following:
A new approach to product quality
Just-in-time (JIT) production techniques
Change in the way the workforce is managed; and
A flexible approach to customer requirements
In terms of-quality, the World-Class manufacturing approach emphasises on the resolution of the
problems that cause poor quality, rather than mere detection of those problems. The purpose is to systematically
resolve the root causes of quality problems so that the company can ideally achieve zero defects or 100 per cent
quality. A second aspect of the new approach is that quality control responsibility is placed on floor with the
production operators. The operators are responsible for doing their own quality control and a 'pride of
ownership' attitude is fostered.
The purpose of JIT manufacturing is to change the production so that inventory not immediately
required for production is eliminated. This goal is achieved by:
Change of the shop-floor layout to reduce the movement of materials
Reduction in production set-up times so that products can be made in very small batches
Synchronizing the manufacturing process so that sub-assemblies and components are
available just when they are needed and not" before or after)
Creating mutually beneficial relationships with suppliers, using techniques such as single sourcing,
certification and openness.
People management is the most difficult problem to solve when introducing World-class manufacturing,
as it requires fundamental changes in management style and philosophy. Some of the new approaches to the
management of people are:
Transfer of Responsibility: A World-Class manufacturer should give operators greater control of their
daily work. They will have prime responsibility for product quality, scheduling preventive maintenance
and for attaining production targets.
Education and Cross-Training: World-Class manufacture spends lot of time and money to educate their
employees in areas such as JIT manufacturing, quality control and customer service as well as train them
to do a wide range of tasks within the production plant. This cross training of people allows greater
flexibility because operators can be moved between tasks.
Problem-Solving and Quality Circles: The purpose of quality circles is to have every employee involved
in solving production (and other) problems. These programmes have been very successful in many
companies because they create an environment of team involvement and common cause, which enables
people, who previously had very little opportunity to contribute, to become innovative and resourceful
problem-solvers.
As for flexibility, there are two aspects of flexibility that are important:
Production Flexibility: It is achieved when the company can offer short lead times, when the product
mix within the plant can be changed significantly from day to day, and when people within the plant are
cross-trained to manufacture a wider range of products. A company that can offer this level of flexibility
to its customers (without a price penalty), has a significant competitive advantage.
Design Flexibility: It is related to the company's ability to introduce new products and modifications to
current products. A company must be able to understand the current andfuture needs of its customers, to
develop innovative products and to get those products to the market place quickly.
The above list can be stretched further but I believe it has provided a fair idea about what a “World
Class” organization looks like.
World Class organization has nothing to do with its size. Small, Mid-sized or big-size, doesn’t matter.
People know about many such examples where small 1-2 people organizations such as Apple, Google, Zappos,
37Signals and soon have become world class by subscribing to one or more of the above.
Becoming a World Class Organization is not easy. It takes lot of commitment, pain and ability to go
against the flow. People don’t always do their best, economic conditions are not always in favor, a competitor
pops up and tries to grab the market share by engaging in less than ethical, short-term methods…so many
tempting offers from others and so on.
Business Excellence
Business Excellence (BE) is about developing and strengthening the management systems and processes
of an organization to improve performance and create value for stakeholders. BE is much more than having a
quality system in place. BE is about achieving excellence in everything that an organization does (including
leadership, strategy, customer focus, information management, people and processes) and most importantly
achieving superior business results.
Different models considering different corporate and human resource policies are given below:
1. DEMINGS PRICE Model:
The Deming’s Prize that is given to organizations, has exerted an immeasurable influence
directly and indirectly on the development of quality control/management in Japan. These organizations
developed effective quality management methods, established the structures for implementation and put
the methods into practice. Those organizations who have challenged for the prize share the feeling that
they have had a valuable experience and that the management principle of achieving a business success
through quality improvement has really worked. This award recognizes both individuals for their
contributions to the field of Total Quality Management(TQM) and businesses that have successfully
implemented TQM. The purpose of the Deming Prize was to recognize those who excelled in quality
control and as a way of driving quality control. It was also established to thank Dr. Deming for his
accomplishments and impact in the Japanese industry.
2. Malcolm Baldridge quality award Model
It symbolizes the highest standards of total quality management. Baldrige Criteria for
Performance Excellence (CPE) is composed of seven categories. This award considers an organization’s
environment, key working relationships, and strategic situation – including competitive environment,
strategic challenges and advantages, and performance improvement system.
TBEM Criteria is designed to help organizations use an integrated approach to organisational performance
management that results in
Delivery of ever-improving value to customers and stakeholders, contributing to organizational
sustainability
Improvement of overall organisational effectiveness and capabilities
Organisational and personal learning
The Criteria are built on the following set of 11 Interrelated Core Values and Concepts:
Visionary Leadership
Customer-driven Excellence
Organisational and Personal Learning
Valuing Employees and Partners
Agility
Focus on the Future
Managing for Innovation
Management by Fact
Social Responsibility
Focus on Results and Creating Value
Systems Perspective
The Core Values and Concepts are embodied in seven Categories, as follows:
Category 1: Leadership
Leadership addresses how your senior leaders guide and sustain your organisation, setting organisational
vision, values, and performance expectations. Attention is given to how your senior leaders communicate with
your workforce, develop future leaders, measure organisational performance, and create an environment that
encourages ethical behaviour and high performance. The Category also includes your organisation’s governance
system and how it ensures ethical behaviour and practices good citizenship.
Category 2: Strategic Planning
Strategic Planning addresses strategic and action planning, deployment of plans, how adequate resources
are ensured to accomplish the plans, how plans are changed if circumstances require a change, and how
accomplishments are measured and sustained. The Category stresses that long-term organisational sustainability
and your competitive environment are key strategic issues that need to be integral parts of your organisation's
overall planning. While many organisations are increasingly adept at strategic planning, plan execution is still a
significant challenge. This is especially true given market demands to be agile and to be prepared for
unexpected change, such as disruptive technologies that can upset an otherwise fast-paced but more predictable
marketplace. This Category highlights the need to place a focus not only on developing your plans but also on
your capability to execute them.
Category 3: Customer & Market Focus
Customer and Market Focus addresses how your organisation seeks to understand the voice of the
customer and of the marketplace, with a focus on meeting customers’ requirements, needs, and expectations;
delighting customers; and building loyalty. The Category stresses relationships as an important part of an
overall listening, learning, and performance excellence strategy. Your customer satisfaction and dissatisfaction
results provide vital information for understanding your customers and the marketplace. In many cases, such
results and trends provide the most meaningful information, not only on your customers’ views but also on their
marketplace behaviours (e.g., repeat business and positive referrals) and how these views and behaviours may
contribute to the sustainability of your organisation in the marketplace.
Category 4: Measurement, Analysis and Knowledge Management
The Measurement, Analysis, and Knowledge Management Category is the main point within the Criteria
for all key information about effectively measuring, analysing, and improving performance and managing
organisational knowledge to drive improvement and organisational competitiveness. In the simplest terms,
Category 4 is the “brain centre” for the alignment of your organisation’s operations with its strategic objectives.
Central to such use of data and information are their quality and availability. Furthermore, since information,
analysis, and knowledge management might themselves be primary sources of competitive advantage and
productivity growth, this Category also includes such strategic considerations.
Category 5: Workforce Focus
Workforce Focus addresses key workforce practices-those directed toward creating and maintaining a
high-performance workplace and toward engaging your workforce to enable it and your organisation to adapt to
change and to succeed. The Category covers workforce engagement, development, and management in an
integrated way (i.e., aligned with your organisation’s strategic objectives and action plans). Your workforce
focus includes your capability and capacity needs and your workforce support climate. To reinforce the basic
alignment of workforce management with overall strategy, Criteria also covers human resource planning as part
of overall planning in the Strategic Planning Category
Category 6: Process Management
Process Management is the focal point within the Criteria for your key work systems and work
processes. Built into the Category are the central requirements for identification and management of your core
competencies to achieve efficient and effective work process management: effective design; a prevention
orientation; linkage to customers, suppliers, partners, and collaborators and a focus on value creation for all key
stakeholders; operational performance; cycle time; emergency readiness; and evaluation, continuous
improvement, and organisational learning. Agility, cost reduction, and cycle time reduction are increasingly
important in all aspects of process management and organisational design. In the simplest terms, “agility” refers
to your ability to adapt quickly, flexibly, and effectively to changing requirements. Depending on the nature of
your organisation's strategy and markets, agility might mean rapid change from one product to another, rapid
response to changing demands, or the ability to produce a wide range of customised services. Agility also
increasingly involves decisions to outsource, agreements with key suppliers, and novel partnering arrangements.
Flexibility might demand special strategies, such as implementing modular designs, sharing components,
sharing manufacturing lines, or providing specialised training. Cost and cycle time reduction often involve Lean
process management strategies. It is crucial to utilise key measures for tracking all aspects of your overall
process management.
Category 7: Business Results
The Results Category provides a results focus that encompasses your objective evaluation and your
customers' evaluation of your organisation’s products and services, your overall financial and market
performance, your workforce results, your leadership system and social responsibility results, and results of all
key processes and process improvement activities. Through this focus, the Criteria's purposes - superior value of
offerings as viewed by your customers and the marketplace; superior organizational performance as reflected in
your operational, workforce, legal, ethical, and financial indicators; and organizational and personal learning -
are maintained. Category 7 thus provides “real-time” information (measures of progress) for evaluation and
improvement of processes, products, and services, in alignment with your overall organizational strategy