America's manufacturing competitiveness has been in serious decline for well over a decade.

The authors and many others believe that the major reason is a weakness in the way U.S.
managers have guided their companies, particularly in the areas of manufacturing and
technology management. The current challenge for all American manufacturers is to regain and
maintain a competitive advantage in the global market. To meet this challenge, various
philosophies and approaches for managing manufacturing and technology are required. This
article presents and discusses the strategies and approaches that may be used by American
manufacturers to achieve world-class manufacturing status. This philosophy focuses first and
foremost on continual and rapid improvement.

Slow productivity growth, lost market share, and growing trade deficits indicate clearly that the
United States is losing its ability to compete. How did U.S. industry lose its competitive edge?
The causes most often cited include high labor costs, outdated factories and equipment, and
inflexible unions, as well as favorable government policies and incentives among the
governments of chief competitors. Many authors and researchers however, believe that the real
reason for the erosion of the U.S. competitive position is the way American managers have
guided their companies, particularly in the areas of manufacturing and technology management.
(1)

The challenge for American manufacturers is clear. They must try to regain and maintain a
competitive advantage in the global market. To meet this challenge, they must be willing to try
different philosophies and approaches for managing manufacturing and technology. The
purpose of this article is to present and discuss a strategy that may be used by American
manufacturers to regain world-class manufacturing status. This philosophy focuses on
continual and rapid improvement. Examples of actual improvements achieved by selected
manufacturing companies are also presented.

World-Class Manufacturing Philosophy

A manufacturing firm achieves world-class status when it has successfully developed

manufacturing capabilities to support the entire company in gaining a sustained competitive
advantage over its competitors in such areas as cost, quality, delivery, flexibility, and innovation.
World-class manufacturers regard their manufacturing operations as being externally
supportive, that is, playing a key role in helping the entire company to achieve an edge over its
competitors. (2) They seek to outperform their global competitors in targeted areas; they are not
content simply to copy their competition. They dislike being dependent on outside organizations
for expertise; they want to develop their own work force, equipment, and systems, but they also
respect the capabilities of others. Therefore, they continually scrutinize the outside world,
particularly their top competitors, to ensure that they are aware of the newest ideas and
approaches. The most recognizable characteristic of world-class manufacturers is their abi lity to
adapt quickly to changing customer and market requirements and to get their new products
designed, produced, and delivered to the customers better and faster than their competitors. The
company that has this ability tends to grow faster and be more profitable than its competitors.

World-Class Manufacturing Defined

World-class manufacturing (WCM) is defined as a manufacturing philosophy or ideology
that is used to achieve world-class manufacturer status. The essence of WCM philosophy is
continuous improvement involving everyone in the organization. (3) Organizations that adopt
this philosophy constantly seek opportunities for improvement in such key competitive areas as
quality, cost, delivery, flexibility, and innovation. Such improvements are essential to survival
and profitability.

The emphasis on continual improvement is the ultimate test of a world-class organization.

Robert Hayes, Steven Wheelwright, and Kim Clark, the authors of Dynamic Manufacturing,
explain that any well-run and adventurous company may seize a temporary advantage over its
competitors by adopting a particular innovative product or process design, or by investing in a
state-of-the-art production facility. (4) It may appear initially that such a company has achieved
parity with those other companies that truly compete through their manufacturing capability,
but if this new design or facility comes to be regarded as a goal in and of itself, if the
organization does not immediately begin experimenting and trying new things, the advantage is
soon lost. Richard Schonberger, author of World Class Manufacturing, suggests continual and
rapid improvement as an overriding goal for world-class manufacturing. (5) Masaaki Imai, the
author of KAIZEN, points out that KAIZEN (which means gradual, never-ending improvement,
doing "li ttle things" better; setting and achieving ever-higher standards) is the key to Japan's
competitive success. (6)

Framework for Continuous Improvement

Companies that are pursuing world-class status may take different paths that, in turn, require
different precepts. There are four dominant principles of which these companies may choose one
or more.

1. Just-in-Time (JIT) - The JIT principle focuses on the elimination of waste, with waste defined
as anything other than the minimum amount of equipment, materials, parts, space, and workers'
time, that are absolutely essential to add value to the product. (7)

2. Total Quality Control (TQC) Under the TQC principle, everyone in the organization must be
involved in improving the product's quality to meet customer needs. (8) The emphasis is placed
on defect prevention rather than defect detection and development of an attitude of "do it right
the first time." (9)

3. Total Preventive Maintenance (TPM) - With the TPM principle, machines and equipment are
maintained so often and so thoroughly that they rarely ever break down, jam, or misperform
during a production run. (10)

4. Computer Integrated Manufacturing (CIM) - CIM involves the integration of the company's
operations from design, production, and distribution to after-sales service and support in the field
through the use of computer and information technologies."

Total Quality Management

The term Total Quality Management (TQM) has been discussed as an approach to achieving
world class status. In fact, an entire