Manufacturing Excellence

“We are what we repeatedly do.

Excellence, then, is not an act but a habit.

- Aristotle

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History:
Traditional Indian skills in metallurgy, construction, textiles, surgery,
shipbuilding were an integral part of our innovation in ancient and
medieval times. Metal icons, monuments like Tajmahal etc. are the
witness.

India was late comer in learning the new manufacturing techniques

invented in Europe. Subsequently rapid transformation is seen in
the last 150 years in manufacturing in the west.

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Past
Manufacturing in India was characterized by low volume operations,
process layout shops, use of general purpose machines, very
limited use of advanced methods of manufacturing (like EDM,
LASER machining etc.), inspection as methods of quality control,
use of simple planning tools like bar charts, work force motivated
through achievement, remuneration of personnel mostly on fixed
basis, stable employment with little mobilization, organized centrally
at enterprise level, offering medium level quality of goods at low
prices, marketing in protected environment. Most the manufacturing
was carried out by Public Sector Enterprises except in Automobile &
Steel sector : M/S Hindustan Motors, Premier Automobiles, TISCO
etc.,

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This has been graduated to manufacture of machine tools in India
(M/S Hindustan Machine Tools Ltd.,) which are the prerequisite for
any manufacturing; Training of operators, process capability studies,
Statistical Process Control in QC, use of quantitative/Analytical
approach in operations management, Work measurement, Incentive
plans for work men, subcontracting of work requiring low skills and
less costlier, management process through planning, organizing,
staffing, monitoring, control; MORE. The approach is functional
management.

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 Present
Manufacturing is characterized by medium level of Automation,
limited use of Special purpose machines/CNC machines and
Robos, product layouts, flexible manufacturing systems, and quality
certification – ISO, TQM etc. Product organization is generally
resorted to. Technology collaboration, better production systems:
Product & cellular layouts, use of computers in Engineering,
Planning and Manufacturing to some extent.

The management approach is more of general management,

strategic planning, matrix organizations, JVC, virtual
organizations/Intrapreneurs and formation of Strategic business
units within the organization.

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 Manufacturing is an important phase in the economic
path. India can not skip manufacturing stage of
development and go directly to services.

 Percentage share of manufacturing in National income i.e.

around 17% and there is immediate need for enhancing to 25 to
35%. In comparison East Asian countries (Malaysia, Thailand,
and China) have recorded a share of manufacturing ranging
from 25 to 35% of their GDP.
 Manufacturing is essential for maintaining a balanced growth of
the country, providing right type of employment and for
effectively competing in global market.
 Competitiveness is central to robust growth of manufacturing.
India possess competitive advantage in many respects to
emerge as manufacturing hub for the global market.

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7
8
Share of Manufacturing in GDP

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 Past 1997 Core Technologies 2020

Limited CNC Machines. Advance Machining. 80% of machines will be

Experimental Laser. Advanced Automation CNC.
Modern forging and systems. Intelligent manufacturing.
casting. Sensors & Controls. High speed machining.
India emerging as Robotics & artificial Leading export of
software produce. intelligence. castings
Import dependency. Mechotronics. & forgings.
Development of Test & 10 to 15% advanced
Measuring Equipment software in the world will
for be Indian origin.
Quality & reliability. Self-sufficiency in
Design Capability. advanced machine tools.
Advanced, reliable
software for
manufacturing.

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Why do we lack excellence in Manufacturing?
 Manufacturing is not confined to conversion process,
nor limited to the activities of shop floor but the whole
spectrum of activities between identification of
customer needs; translate into product and satisfying
them.

Reasons for decline of productivity and

stagnation in the growth of manufacturing

 Manufacturing is given low status in the society as

compared to R&D, Finance and Marketing.
 Operations Management Education: Perception of
students and process of management education.
Suggested process: Practice – Theory – Practice
OME should lead to degree+skill+imagination

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• Lack of integration between operations system design
and system operation.
• Work ethos: self discipline, constant practice of good
habits, high levels of commitment, orderliness, house
keeping and work environment.
• Quality: Important attribute which determines
customer satisfaction and competitiveness - In
adequate attention
• We are not short of techniques. We are short of
motivation of managers and workforce.
• Generic issues such as lack of proper infrastructure,
higher transaction cost, higher interest rates,
inadequate power, regulatory issues also need to be
addressed at the policy making level. These issues
are taken up by NMCC.
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Manufacturing Challenge Enabling Technology & Methods

1. Achieve concurrency in all Calls for team work, interaction at all levels
operations. Concurrency of organizations. Simultaneous Engineering,
means planning; design & multicultural & multidisciplinary participation,
development and Quality Function Deployment (QFD).
implementation will be * Consumer product
done parallel to reduce Present : 6-9 months
time to market. Concurrent method: few weeks of
conception
* Large Product Present: Years
Concurrent: Within Months
*Micro Processor Design
Concurrent: 2 months design + 1month for
Fabrication.
System modeling Capacity: Enterprise wide
Planning, Adoptable processes and
equipment 13
Manufacturing Challenge Enabling Technology & Methods

2. Integration of human and Individual and teams will have to be Agile to

technical resources. maintained control over time & technology.
Manufacturing will have Manufacturing enterprises will require
tremendous pressure to Integrated systems, automated routine
functions and People dedicated to find
customize their products. solutions to address customer needs.

Product representations schemes from

customers CAD document to vendor and
reverse.

Concept of single data base for entire

Manufacturing and Engineering.

Manufacturing centers will operate within

networks.

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Manufacturing Challenge
3. Rapid transformation
Conversion of Information to
knowledge, Instantaneous
transformation from vast,
diverse sources into useful
knowledge and effective
decisions. Well trained &
Educated workforce
Enabling Technology &Methods
Manufacturing will be distributed
world wide to meet the customers
demand economically.
Computer based training. Create
tools independent of languages,
Teleconferences, Tele presence,
System security (Data).
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Manufacturing Challenge Enabling Technology &Methods

4. Environmental Compatibility: Develop process technologies to

Reduce production waste & improve use of energy, human
product environmental impact to resources and materials.
zero.
Modeling and risk assessment.

Environment conscious
manufacturing will evaluate waste
production & recycling in each
step of conversion process.

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Manufacturing Challenge
5. Reconfigurable Enterprises:
Organizations to form complex
alliances with other organizations
very rapidly in response to
customer needs
6. Innovative processes: The
advancement largely driven by
IT, Computer tools & Advanced
work practices.
Advances in Manufacturing
processes (conversion of raw
material into product) is
incremental.
Enabling Technology &Methods
Model agreement including legal
instruments, organizational work
force relationships.
Fundamental understanding of
manufacturing processes. Bio
synthetic processes & net shape
integration of multiple processes into
single operation. Single machine will
produce entire product.
Material deposition for rapid
prototyping, Nano technology,
Biotechnology – Molecular
assembling method CLOWN, GROW
Manufacturing process with focus on
decreasing dimensional scale.
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Manufacturing Challenge Enabling Technology &
Methods
7. Entrepreneurship – Networking: Networking in R&D, design &
Manufacturing at higher end.

In case of SME’s skill up gradation

& rapid reorientation for wider
product range and production
processes.

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 World Class Manufacturing

What is World Class Manufacturing?

Performance measures of World Class

Manufacturing

Concepts: Simultaneous Engineering, JIT,

TQM
Strategies for World Class Organization

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 Organizational excellence is the result of innovation and resource
efficiency. We need to be innovative in technology development and
new products, promotion of new policies and market development,
alert to competitor moves and manage resources like materials, men,
machines, money efficiently and effectively and achieve optimal
performance. In order to achieve this we have to overcome the
strategic uncertainties and manage resource tensions efficiently.
Organizations have to formulate marketing, product and manufacturing
strategies to attain world class performance. World class means being
the best in your field in the world in terms of design, engineering,
manufacturing,, quality, lead times and customer service.

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 In the three ranges of time it is naturally
hardest to get people about the long term
vision of a more sustainable world, but it is
vital that we overcome the reluctance to make
a developed country.

Murry Gell Man

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 Strategic Uncertainties

• New Markets
• New Competitors
• Changes in Technology
• Policy changes
• Political & social environment

• Remedies
• New Technologies/New Products (continuous innovation)
• Technology Sourcing
• Export
• T.Q.M./ Quality circles
• Wide Angle Environment Scanning

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 Resource Tensions

• People (Outdated skills, unfavourable age,

brain drain)
• Funds

• Raw Materials

• Facilities

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 Strategic Response to Resource Tensions

• Invest in Education & Training

• Manpower planning
• Multiple and Advance Sourcing
• Just in time
• Backward integration
• Enhanced knowledge base

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 For better productive performance

• Focus on world class manufacturing

• Blending cooperation and individualism

• Providing for future

• More customization

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 Production System

Input Conversion Output

Feedback

Control

Production system lays down the basic frame work for analytical
approach to production management

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 What is World Class Manufacturing?

To be best in your field in the world in terms of the

following:

• Ability to introduce new products in the shortest time

• Shorter lead times & reliable delivery performance
• Least manufacturing cost
• Quality and Reliability
• Customer service (Flexibility of specifications, Delivery,
after sales service)

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 WORLD CLASS PERFORMANCES:

• Manufacturing lead times - Reduction by 3 to 5 times the Current

level

• Product quality defects per million - 200

• Production lot size - 9 to 10 a day

• Value added - 70% of the time (i.e. 30% waiting time)

• Annual No. of improvements - 20 adopted Per person

• Responsiveness - less than a day

• Production cycle distance - 300 Ft

• Inventory - one day

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 Key factors in World Class
Manufacturing

1) Total quality management

Quality at source, giving workers the responsibility,
Efforts to do the best at the first time, Internal Customers
2) Just in Time
3) Employees’ Involvement
4) Continuous improvement
5) Parternership relationship with suppliers
6) Non-valued added activities
7) Low cost automation is recommended for Indian conditions
8) Response to customers. Relentless focus on customer
satisfaction
9) Remove the trival many, to focus on vital few.

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 It is generally felt planning is OK. We are not
short of techniques. We are short of: motivated
managers, ability to select an appropriate
technique, ability to implement the techniques
properly. Getting resources at the correct time is
a problem. Lead time management.

Long term contracts with suppliers & ancillaries

in sub-contracting are some of the solutions.

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 JIT Characteristics
• Accurate demand forecast
• Low inventories
• Small lot sizes
• Quick/low cost setups
• Layout: Product layout/Cellular layout
• Multifunctional workers
• Multi pronged approach: Workers responsible for checking their quality, build quality at design stage, vendors to
provide high quality materials and parts.
• Team Spirit
• Reliable vendors
• Push pull system
• Problem Solving
• Continuous improvement

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Negative aspects
• Operators resistance for high quality
• No buffer stock. Poor quality can cause
shut down of entire line
• Training costs: time and money

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 TQM

1 2
Understand
Meet this
Customer
Requirement
Requirement

4 3
Continue Measure
Improvement Success

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 TQM
Principles of TQM
– Right First Time
– Competitive bench marking
– Involvement of people
– Team work and synergy
– Training
– Internal customers
TQM is conviction. Aims at attitudinal
change than emphasizing the system as in
ISO 9000. TQM is fully satisfying agreed
customer requirement at lowest internal cost.
Quality is everybody’s jobs.
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The Way Forward – Key Recommendations
 National Manufacturing Competitiveness Council (NMCC) is setting
priorities and manufacturing excellence as national goal and has
brought out draft report on “National Strategy for Manufacturing”.
The National Strategy for Manufacturing has identified the
following priority areas of policy intervention:
- Developing capabilities for turning out advanced technology
products and need for investing high technology areas.
- Entrepreneurship Promotion.
- Improving quality of scientific education.
- Skill building. Vocational training in the context of skill shortage.
- Infrastructure enabling building facilities.
 The challenges Indian manufacturing is facing warrant appropriate
responses from both government as well as industry
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Key recommendations: Government would need to deal with the
following principle challenges.
- Ensuring macro economic stability including containment of core
inflation
- Ensuring cost competitiveness and stimulating domestic demand
- Strengthening education & skill building
- Investing in innovations & technology
- Enabling speedy development of infrastructure
- Providing right market framework & regulatory environment to
reduce transaction costs.
- Reduction in direct and indirect taxes
- Ensuring effective coordination between Central, State and Local
levels.

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- Reforming Labor Laws
- Identifying and training manufacturing visionaries
- Creating a standing mechanism for resolving manufacturing policy
issues.
- Enabling Small & Medium Enterprises (SMEs) to achieve
competitiveness
- Skill-Intensive Growth: we need to continue to focus on skill-
intensive production processes to have an edge to global market.
- The SME’s role can be improved if they could reposition their role as
the backbone of the manufacturing sector. Enabling Public Sector
Enterprises (PSEs) to meet competitive market conditions.

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 The Industry needs to deal with the following Challenges:
- Investing in R&D and technology
- Showing a continuing commitment to skills development &
knowledge enhancement
- Adopting global standards and Benchmarking their performance
against the best in the class
- Adopting best manufacturing practices & production techniques
- Increasing the scale of operations and delivering on globally
acceptable quality levels
The manufacturing sector in India needs to access the vast market
possibility available at the bottom of the income pyramid in the
country.

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Future Manufacturing

• Computer Integrated manufacturing to a large extent.

• Innovative processes :
• Rapid Transformation, Concurrency in all operations.
• Prototype knowledge based master production scheduling
systems
• Manufacturing has to respond to customer choice towards
increased variety, perfect quality, instant off the shelf availability and
small cost by the use of Agile techniques.
• Lean Manufacturing
• Environmental compatibility: Reduce production waste and product
environmental impact to zero.

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• Networking in Entrepreneurship: Entrepreneurship- this requires
networking among organizations/people from R&D, Industry,
Consultants, and Exporters.
• In India we have lot of SMEs. We need to help them in reorienting
them speedily for different product ranges, production processes
keeping Indian & Export market in view.
• We can not limit to application software. Have to move further to
software design, advanced software design in manufacturing,
communications, health care etc.
• Tremendous pressure to customized products
• Reconfiguring enterprises rapidly, virtual organizations
• Zero defect quality.

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 Simultaneous Engineering
Objective: Shortening new product development to market
introduction and survive global competition
Concept: Conceptual design and product planning advanced
engineering, product engineering, process engineering and pilot run
production are carried out simultaneously to compress the overall
cycle time.
- Task force system
- Concept of guest engineers
- Over the fence engineering wastes time inhabits communication
and foster late changes
- Enhancing design, boosting with CAD CAM
- Vendors become customer driven (involved at design stage)
- Quality Function Deployment (QFD)
- Design for manufacturability (DFM)

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Strategies for World Class organization:
• Knowledge of global economy
• Product differentiation
• Obsession with quality
• Developing the most professional employees
• Innovation
• World Class leadership
• Problem ranking process
• Bench marking
• waste reduction thinking

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 Strategies for World Class Manufacturing
Single Data Base (SDB) To make process eco-
that includes design, friendly
methods,
quality/instructions, BOM,
etc.
Multi-skill Development Customer centric. More
customization

Task oriented teams Obsession with quality,

adopt TQM, zero defect

Multiple and Advanced Long term contract with

sourcing suppliers
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Backward integration Networking of skills: Design,
Engineering, Manufacturing
to be globally competitive

Enhanced knowledge base On the lower end (small &

medium Industries): up
gradaton of human skills and
modernization
Low cost Automation Focus on advanced/reliable
software for manufacturing

Eliminate/Reduce waste Aim at manufacture of

sophisticated automated
systems 45
 Examples of World Class behaviours

• Walk the talk: Demonstrate the commitment

• Openness: Communicate openly and honestly with others
• Recognize and acknowledge the contribution
• Learn: Build environment in which learning is encouraged and
applied
• Share knowledge skills and experience generously with others
• Decisive: Seek appropriate input before making decisions in a timely
manner
• Creative: Convert new ideas and innovation into action
• Listen: Keep lines of communication open by being approachable and
open minded
• Accountable: Deliver what we promise
• Service: to be service to others
• Shared responsibility: act for the benefit of the organization. Look
holistically and seek integrated approaches to problem solving

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SIMULTANEOUS ENGINEERING

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 Traditionally a series of sequential steps are followed to
design the product, identify manufacturing process,
assemble, test & ship to market place.

Product Marketing Product Advanced Process

Definition Strategy Design Engg. Engg.

Testing Manufacturing Agency Environ. Prototype

Approval Testing

Sequential Engineering

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Product Definition Marketing Strategy Product Design

Advanced Product Development Process Engg.

Engg.
Product Development

Prototype Environmental testing Agency Approval

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Benefits of simultaneous engineering are

• Quality is built in
• Engineering changes are reduced
• New product times cut by 75%
• Assembly times cut by 50%.
• Reduced piece parts

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 Need for Change: The first step is to recognize the need
for change. Simultaneous engineering
requires a major shift in the culture of a company.

A comprehensive approach
Between 60% to 80% of the cost of a product is
committed at the design stage. As a first target, the overall
time to bring a new product to market from concept must
be cut by at least 25-35% to compete globally.

The lever of change

The real heart of the SE process is working in teams and
teamwork. Teamwork is one of the fundamental levers of
change.

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Enhancing Design
• Over-the-fence engineering wastes time, inhibits
communication and fosters late changes
• Too many changes come too late at too great a cost with
over-the fence engineering
• Important tool used by the team is Quality Function
Deployment (QFD). QFD ensures the product meets
exactly the customer's requirements.
• It also results in the design being specified at an early
stage, thus allowing changes to be made earlier.
Vendors become customer driven
• For successful simultaneous engineering, key equipment
and component vendors must be part of the team

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Total quality becomes reality
• Guarantee quality by design
• Quality begins with engineering and off-line quality
control
• On-line control is the last stage

simultaneous engineering the design becomes the

concern of all departments.

The cost of quality:

• Product failure, 10%
• Lost opportunity, 10%
• Approval 7.5%
• Prevention of poor quality, 2.5%.
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Boosted with CAD-CAM
Increased use of CADCAM (Computer
Aided Design and Manufacturing) must be
exploited.

The Task Force will use a number of

techniques including:
• QFD specifies the product completely
• All stages are fully documented.
• DFM: Design For Manufacture
• DFA: Design For Assembly
• Manufacturing knows required performance
levels as well as manufacturing tolerances.
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Lean Manufacturing
• Lean Manufacturing is the production of goods
using less of everything compare to mass
production; less human effort, less
manufacturing space, less investment in tools,
less engineering time to develop new products.
It is renowned for its focus on reduction of
wastes, mostly derived from Toyota production
system. Lean is often linked with Six sigma
because of the methodologies emphasis on
reduction of process variation.

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Maintenance Management

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Equipment malfunctions in Manufacturing and
service industries have a direct impact on
• Production capacity. Machines idled by machine break
downs cannot produce: thus capacity of the system is
reduced
• Product and service quality. Poorly maintained
equipment produces low-quality products.
• Employee or customer safety. Worn-out equipment is
likely to fail at any moment, and these failures can cause
injuries to workers.
• Customer Satisfaction. When production equipment
breaks down, products often cannot be produced
according to the master production schedules. This
means that customers may not receive products when
promised.

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Trends in maintenance
• Special Programs to maintenance workers
• Subcontracting service companies

• Use of Computers in
- Scheduling maintenance projects
- Maintenance cost reports by production department
- Inventory status reports for maintenance parts and
supplies
- Parts failures data

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 Best Practices in Maintenance

• Philosophical and Theoretical Shift

• Understanding the Change
• Team work
• Training
• Asset Management
• Warehouse/Inventory Control
• Corrective Maintenance

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• Preventive Maintenance
• Predictive Maintenance
• Purchasing
• Pro-Active Maintenance
• Accountability
 Overview Indicators
 Routine Maintenance Indicators
 Equipment Performance Indicators
• Reliability Centered Maintenance

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WHAT WORLD-CLASS COMPANIES DO
• World-class companies give much of the responsibility
for repairs and preventive maintenance to workers

• A cornerstone of JIT is therefore to implement a

sophisticated preventive maintenance program

• intensive training programs for maintenance workers

• Technological developments have added automated
process sensing and control systems to production
equipment to give warning
• Scheduling Maintenance projects
• extensive use of computers in maintenance
management.
• effective maintenance management carries a high
priority.
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