World class manufacturing

From CEOpedia | Management online

World Class Manufacturing (WCM) is a method of improving the cycle of production and logistics. The main objective of the method is to increase quality and reduce production costs. The main rules of the WCM are:

The idea of zero comes from the numerous discussions about what the level of quality should be. Apart from setting realistic objectives, the WCM simplifies things and sets the ideal, to which all enterprises should endeavour.

Evolution of the WCM

The World Class Manufacturing is a concept developed by FIAT and partnering companies in 2005. However the name was used earlier by Richard J. Schonberger in 1986. Both ideas are different and not linked.

The original Schonberger's idea was based on the role of staff, economy, responsibility centers, zero defects, product and process design, partnership, simplicity.

The WCM can be viewed as yet another set of known quality methods, but ordered differently, with different importance. It stands as a competitive idea to Toyota production system, Lean management or Six sigma. The similarities between those ideas are visible, especially on operation level.

The pillars of World Class Manufacturing

The 10 technical pillars of World Class Manufacturing are:

  1. Safety
  2. Cost Deployment
  3. Focused improvement
  4. Autonomous maintenance and workplace organization
  5. Professional maintenance
  6. Quality control
  7. Logistics & Customer service
  8. Early equipment management
  9. People development
  10. Environment

The 10 managerial pillars of World Class Manufacturing are:

  1. Management Commitment
  2. Clarity of Objectives
  3. Route map to WCM
  4. Allocation of Highly Qualified People to Model Areas
  5. Commitment of the Organization
  6. Competence of Organization towards Improvement
  7. Time and Budget
  8. Level of Detail
  9. Level of Expansion
  10. Motivation of Operators

The managerial pillars create a foundation for technical ones. It is not possible to achieve WCM using only one of those sets of pillars.

How to implement WCM?

There are several steps to implement WCM idea:

  1. Reduce the lead times - the ability of sooner delivery can be decisive for success on the market.
  2. Reduce time-to-market - the markets demand quick response. The R&D and marketing processes should be optimised.
  3. Cut operations costs - costs have to be cut wisely. Identify operations that don't create a value and remove them.
  4. Exceed customer expectations - the customer expectations change so rapid, that the enterprise should exceed them, to keep up to speed with the market. The organization should know what customer will want even earlier than the customer thinks about it.
  5. Manage the global enterprise - limiting the market to one country only is limiting the possibilities. Even small and medium enterprises can globalize their operation using internet.
  6. Streamline outsourcing processes - it is impossible to be the best in everything. The organization should increase its flexibility using extensive cooperation.
  7. Improve business performance - the performance should be continuously improved using lean manufacturing or other concepts.

Examples of World class manufacturing

  • Kaizen: Kaizen is a process of continual improvement, used in WCM, which involves everyone in the organization from the top down. It involves a cycle of improvement that includes identifying problems, setting goals, making improvements, and then measuring and evaluating the results. Kaizen can be used to improve the quality of products, reduce waste, and increase efficiency.
  • Just In Time (JIT) Manufacturing: JIT is a production strategy that reduces inventory levels by ensuring that materials and components arrive at the right place, at the right time, and in the right amounts. This helps to reduce costs and improve the efficiency of production by removing the need to store and manage large amounts of inventory.
  • Total Quality Management: TQM is an approach to quality control and improvement that focuses on processes, rather than individual products and services. It involves the entire organization, from top to bottom, working together to ensure quality in all aspects of the business. The goal of TQM is to identify and eliminate waste and inefficiencies in the manufacturing process, while improving customer satisfaction.
  • Lean Manufacturing: Lean manufacturing is a production system aimed at reducing waste and improving efficiency. It involves streamlining processes, eliminating non-value added activities, and improving the flow of materials and information. The goal of lean manufacturing is to produce higher quality products in less time, using fewer resources.
  • Six Sigma: Six Sigma is a business process improvement methodology that focuses on reducing defects and improving the quality of products and services. It uses a data-driven approach to identify and eliminate waste, reduce variation, and improve processes. The goal of Six Sigma is to reduce defects to a rate of 3.4 per million opportunities, which is much lower than the industry standard.

Advantages of World class manufacturing

The World Class Manufacturing (WCM) method is a comprehensive approach to improving production and logistics processes. The main objective of the WCM is to increase quality and reduce production costs. Below are some of the advantages of using this method:

  • Increased productivity - WCM focuses on reducing waste and improving efficiency, resulting in higher productivity.
  • Improved quality - The focus on waste reduction also leads to improved quality control and higher product reliability.
  • Reduced costs - By eliminating waste and improving efficiency, WCM helps reduce production costs.
  • Increased customer satisfaction - WCM helps create better products and services, leading to increased customer satisfaction.
  • Improved safety - WCM helps to create safer working conditions by reducing the potential for accidents and injuries.
  • Improved morale - WCM helps create a better work environment, resulting in improved morale among employees.

Limitations of World class manufacturing

World Class Manufacturing (WCM) is a method of improving the cycle of production and logistics with the goal of increasing quality and reducing production costs. However, there are a few limitations to this method:

  • WCM requires a significant amount of investment in order to be implemented, which may be difficult for smaller businesses.
  • It needs a highly-skilled workforce, which can be expensive and hard to find.
  • It can be difficult to measure the success of WCM, as the results may not be immediately obvious.
  • WCM may not always be suitable for all types of businesses and can be difficult to adapt to different circumstances.
  • It can be difficult to motivate staff to embrace and adhere to the WCM system.

Other approaches related to World class manufacturing

To complement World Class Manufacturing, there are several other approaches that can be employed to further increase the efficiency and quality of production and logistics. These include:

  • Total Quality Management (TQM): This approach focuses on improving the overall quality of products, services, and processes. It is an ongoing process that focuses on prevention, rather than detection and correction of defects, and involves all stakeholders in a continual improvement cycle.
  • Just-In-Time (JIT) Manufacturing: This approach emphasizes the reduction of waste and cost through improved production planning and scheduling. It involves producing only what is needed, when it is needed, and in the quantities needed.
  • Kaizen: Kaizen is a Japanese term meaning "continuous improvement." It is an approach that encourages all employees to participate in making small changes that can have a big impact on efficiency and quality.

In summary, World Class Manufacturing can be supplemented by other approaches such as Total Quality Management, Just-In-Time Manufacturing, and Kaizen to further increase the efficiency and quality of production and logistics.


World class manufacturing — recommended articles
Toyota production system — Quality management — Lean manufacturing — Kaizen — Continuous improvement — Total quality control — Philip B. Crosby — Total Quality Management — Kaizen costing

References

Author: Slawomir Wawak

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