BerthiezDörriesDroop+ReinHeckertScharmannStarragSIPTTLWMW

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

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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

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KAIZEN & QDC

Man

Machine

Material

Method

QUALITY-MURA

DELIVERY-MURI COST-MUDA

4Mx3mu=12 point improvement opportunity

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Thank you