A WORLD CLASS MANUFACTURING IMPLEMENTATION MODEL

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Applied Mathematics in Electrical and Computer EngineeringA WORLD CLASS MANUFACTURING IMPLEMENTATION MODELMurino T., Naviglio G., Romano E.Department of Materials Engineering and Operations ManagementUniversity of Naples “Federico II”P.le Tecchio – 80125 it,elromano@unina.itGuerra L.Polytechnic Laboratory of Research s.c.a r.l.via G. Dall’Armi, 27/1 – 30027 - San Doná di Piave (VE)ITALYl.guerra@polare.euRevetria R., Mosca R., Cassettari L.C.DIPE, University of GenoaVia Opera Pia 15- 16145 ge.itcassettari@diptem.unige.itAbstract: - This paper focuses on the World Class Manufacturing, an innovation program based on Continuous Improvement,that provides the elimination of all types of waste and loss of production through the involvement of all levels and alldepartments. In this work is defined a model based on the logical opening of the different pillars that make up the WorldClass Manufacturing in the Light version, and the definition of appropriate performance indicators that can give a view of theinvolvement, the management effectiveness and the achievement of objectives. The Case Study focuses on theimplementation of two pillars in particular, Cost Deployment that acts as a guide for the implementation of the program andWorkplace Organization.Key-Words: - World Class Manufacturing, Workplace Organization, Cost Deployment, Lean managementpillar of Safety concerns the safety of the plant with the goalof having zero accidents, the pillar of Quality Control toreduce major defects attacking the root cause, the FocusedImprovement, which provides tools for setting improvementprojects, the pillar of People Development, which aims atthe involvement and training of human resources, theLogistics & Customer Service to improve the allocation ofmaterials inside the plant and increase the level of customerservice, the pillar of Autonomous and ProfessionalMaintenance that address the reduction of failures ofequipment and facilities. Then the aim of this work is thedefinition of a WCM implementation model, which can actas a guide for the implementation of this methodologywithin the supplier and that represents a succession ofseveral pillars to open, starting from an analysis of thecurrent state and following the compass of CostDeployment.Finally, we have analyzed a Case Study on theimplementation of WCML in an important supplier Italian1 IntroductionThe present work is focused on the World ClassManufacturing, an innovation program based onContinuous Improvement, that provides the elimination ofall types of waste and loss of production through theinvolvement of all levels and all departments. The mainpurpose is to be successful on the market with high qualityproducts at competitive prices, responding to the customerneeds, ensuring maximum flexibility. This is the mainreason why the Italian Automotive Company has made ithis workhorse and why it has decided to extend itssuppliers. In the paper was analyzed the WCMmethodology outlined in the WCM temple and developed invarious pillars that compose it. In particular, we analyzedthe pillars that make up the WCM Light package. The pillarof Cost Deployment represents the reporting and reductionof losses, the Workplace Organization represents theimprovement of work stations within the establishment, theISBN: 978-1-61804-064-0371

Applied Mathematics in Electrical and Computer Engineeringassociated with ten Managerial pillars that apply to all workteams, management and workers, which are regarded as thetrue protagonists of the revolution basically Bottom–up.In particular, the “Technical Pillars” are as follows: Safety,Cost Deployment, Focused Improvement, Quality Control,Workplace Organization Professional Maintenance,Autonomous Maintenance, People Development, Logistics& Customer Service, EnvironmentThe “Managerial Pillar” at the base of the technique, areas follows:Management Commitment, Clarity of Objectives, RouteMap of WCM, Allocation of Highly Qualified People,Commitment of Organization, Competence of Organization,Time and Budget, Level of Detail, Level of Expansion,Motivation of OperatorsEach pillar has seven steps that must be covered andcertified to implement this methodology, in the bond thatyou can’t go to the next step if you have not completed andcertified the previous step. These columns address thebusiness functions in their daily work and require ananalysis of the benefit/cost which is the discriminatingfactor for the feasibility of that is about to undertake. Eachproject must be implemented to have a competent team, acost analysis, actions to improve the benefit / cost ratio, andconstant monitoring over time. The concepts of depth andbreadth of the WCM are further innovations in the sensethat this methodology requires that individuals holding alimited area on which we begin to do yard, and only whenthe team gave the expected results, and followed strictly thesteps provided by the pillar you can think of the extensionof the methodology, which consists of identifying othersites, which are areas identified as critical analysis of thepreliminary costs. In practice, if this proves to be strict in alimited scope, it is unthinkable to go further and extend theprocess. The score that comes from formal audit establishesa competition between plants leading to a further push to theimprovement.Automotive Company, following the model definedbefore. The implementation of this methodology led to theactivation of the pillar of Cost Deployment and WorkplaceOrganization for the reduction of losses resulting from nonvalue added in the assembly process of the productssupplied to the customer. The result of this implementation,doesn’t stop at only these two pillars, but it implies 56%losses reduction very evident at first sight, theimprovements made by WCM and future development ofthis methodology is in this supplier Company.2 The World Class ManufacturingThe recent crisis in the new economy did emerge clearly theimportance of careful management both strategic andoperational of the supply chain. It is therefore necessary toconsider, in a more systematic approach, the strategic areaof operations, rather than simply, the mere technical andoperational aspects. In Lean Production the role of physicaltransformation is apparent and badly in terms of strategicplanning. Primary factors of change at the origin of “LeanRevolution” and subsequent “World Class Revolution” canbe identified in the following points: the progressive reduction of the product life cycle; the difficulty in reliably predict the demand for finishedproducts, components and subassemblies; the resulting inability to calculate correctly the load inputto the production system which intends to be irregular; an increasing mix of finished products demanded by themarket, needed to satisfy an increasingly demanding; The increasing competition of the emerging countrycompetitors that are difficult to win on the cost side, butalso on quality.So, we must rewrite the production process to answer theneeds of global market.The World Class Manufacturing (WCM) is an integratedsystem that brings the excellence of the entire logisticscycle and production of an undertaking by:-Continuous improvement of all services;-Involvement of all levels and functions;-The adoption of the principles of Total Quality, LeanProduction and the “Integrated Factory”.The seven key factors for WCM success are:1. Reduction of lead time;2. Rapid response to market changes;3. Cut the costs of operation;4. Excel customer expectations;5. Managing the global enterprise;6.Manage processes in outsourcing;7.Improving the visibility of the performance of yourbusiness.4 The WCML implementation modelThe manufacturing industry in general and the automotiveindustry in particular face of increasingly difficultchallenges. The importance of a strategic plan and apartnership between the automakers and suppliers isbecoming increasingly important as the auto industry goesglobal. In reality, the future presents an increasinglytechnological partnership with suppliers with a view togetting more competitive to achieve a leadership position inthe market. The automotive Group with the World ClassManufacturing will lay the foundation for achieving thisposition facing different challenges in terms of logistics, ion. In all of this, the suppliers represent for thecustomer Company a key element of high strategic value forachieving this, since a company can greatly improve itsprocesses, but if the materials that are provided are of poorquality, all of its products will be affected. In fact, the3 The WCM methodologyFrom the operational point of view the WCM methodologyis developed in the deepening of the ten major aspects ofproduction, called Technical Pillars. These pillars areISBN: 978-1-61804-064-0372

Applied Mathematics in Electrical and Computer EngineeringWorld Class Manufacturing requires many suppliers whoare World Class and may participate in the development ofnew products, and can always guarantee the same qualitystandards. The intensification of competition on quality andprice, the high impact of supplies and the need to achieve aglobal presence in the market lead in developing new formsof collaboration. In particular the WCM vendors are startingto get goals and to develop systematic approaches toimprove and invest in their skills and manufacturingcapacity. The manufacturer, however, must learn to managethese strategic partnerships by defining roles and adequateback-up information. The main objective of the carmanufactures Group is to reduce substantially the number ofsuppliers, while increasing the quality of the products theyprovide. The reduction of these has several advantages forthe Company customer as it allows you to have morecontrol over orders, to streamline the relationship betweenmanufacturer and supplier of lowering prices and going toassign larger volumes. From the perspective of suppliers isessential, therefore, included in that group, with a view . The strategic value of WCM is that in orderto come in this group of providers, you must implement thismethod to adjust the quality levels of supplies to thestandard required by the customer.The main problem of the implementation of WCM (also forWCM Light for suppliers) is the sequence of pillars to open,because there is not a standard of opening and activation ofWCM pillars. So, there is the need to have a guideline foropening of WCML pillars and the following model is a wayto answer this question. This model is called WCML TreeModel because the flow chart for the opening of pillars, islike a tree and this analogy is made to show the integrationof all pillars that are expected by this methodology. At firstwe must analyse the current state for the implementation ofWCM. An important indicator is the number of Leantechniques within the production system management,where technical means those families of instruments thatform the basis of Lean Production, such as Value StreamMap, the Kanban, 5S. This index can be called LeanPresence Index LPI.LPI N Lean techniques in the system(1)Lean techniques have found the company, does not meanthat the company is lean, because such techniques should beadopted and used in ordinary work by all employees. So inaddition to the first indicator is useful to make anotherappointment that is the relationship between the number ofLean techniques adopted and the number of Leantechniques within the system of production management orthe LPI. This relationship can be defined as a Lean UseIndex LUI.LUI (number of techniques used) / LPI(2)If the index is greater than 50%, should be easy toimplement the proposed WCML Tree Model.After this analysis, the first pillar of the new methodologyto enable must be the Cost Deployment because that’s whatISBN: 978-1-61804-064-0makes a guide for the reduction and elimination of losses ofa business. In addition, the Cost Deployment is a pillarwhich initially requires the participation of all majorcorporate resources (production, maintenance, logistics andquality), so it can be used to involve the different actors inthe program and bring to the attention of the potentialbenefits that this methodology can bring.In CD are defined the various losses and the macro-categorythey belong. For example, the loss of Non Value AddedActivities, Balancing, lack of training are linked to Manmacro-category, while failures and Minor-Stoppage, Set-upbelong to Machine macro-category. The losses for nonsupply lines, or defective raw materials belong to Materialsmacro-category. The loss of non-standard definition belongto Method macro-category. Identified losses, it starts thestep of costing, and the allocation of the macro-categoryloss that has priorities. This priority is identified based onthe amount of the loss of the main plant. For example, if theloss is the highest downtime, or the set-up, the macrocategory that has priority is Machine. Based on thisprioritization, and this link between macro-category andloss, it is therefore necessary to initiate activities ofWorkplace Organization for NVAA loss, or Autonomousand Professional Maintenance activities to reduce lossesdue to failures, Minor Stoppage or Set-up. Forreducing Material losses is necessary to open Logistics &Customer Services pillar, and finally for losses related to theMethod is necessary to open Focused Improvementpillar. In particular, the WO pillar attacks NVAA lossesgoing to create standards, such as order and cleanliness,going to study Value Added for each location and going toshoot it down with appropriate countermeasures.The AM and PM pillars attack the failures and minorstoppage losses, restoring basic conditions, eliminating themachines sources of dirt, creating cycles of inspection andmaintenance that are functional to reduce the number ofevents that generate losses. Logistics & Customer Service,attacks all losses related to the materials with the aim ofproviding the right material to the locations, just in time, inthe right quantities and with the right quality.Finally, Focused Improvement provides key tools to reducelosses due to the method and non-standard setting. Thispillar implements the various types of projects (QuickKaizen, Kaizen, Standard, and Advanced Major KaizenKaizen). Each is aimed at reducing losses through the toolsof analysis and definition of the causes of problems or the5W 1H, 4M and 5Why’s, in order to implement thecountermeasures and engage the appropriateresources.This involvement requires the development and activationof People Development pillar, which aims to provide theresources and objectives to address any training gaps, aswell as to inform all of WCM. In particular, is necessary tomap the skills of workers according to 5 levels ofknowledge to achieve the targeted training, to create thesystem of assessment and recognition of ideas forimprovement and point to the involvement of resources373

Applied Mathematics in Electrical and Computer Engineeringthroughout the plant. Obviously, all people must worksafely, so it is necessary to open Safety pillar, that reducethe potential causes of accidents and avoid incidents thatcould compromise machines and operators. PeopleDevelopment and Safety pillars, are cross-pillars in thesense that it involves two key aspects of the plant, so theymust be activated together in order to create a sort of fertileground in which to develop and integrate the methodologyin complete safety workers. Once attacked the main lossmacro-category identified belonging to the first, it needs todefine priorities for action for the other major categories ofloss and attack them with the main pillar that reduces thatloss, until the four major categories are concerned.Activated all pillars, will start Quality Control pillar thatwill resolve the main recurring defects detected by the QAMatrix, with specific projects of Quality Maintenance orProblem Solving, and ensure the customer a higher qualityproduct. The flowchart of WCML implementation is shownin Figure 1.Fig. 2. The WCML Tree ModelIn order to evaluate the goodness of a model, methodologyand provide information on its implementation, it is usefulto set out the indicators that can provide a clear view of thesystem in place and can provide the basis for makingdecisions as effective as possible. For the WCML TreeModel were defined three main indicators that go tomeasure the involvement of resources, effectivemanagement and achievement of objectives. As a referencetimescale was considered the year (calendar or fiscal is nodifferent in order to obtain information that is as meaningfulas possible). The three indicators are:1. Involvement Index II;2. Effectiveness Management Index EMI;3. Target Achievement Index TAI.The Involvement Index II is used to monitor what has beentransferred to the methodology within the plant based on thenumber of tips provided by the operators, thus givingfeedback on activities. In particular, the involvement indexis the ratio between the number of tag plus the number ofsafety tips plus the number of Quick Kaizen made and thenumber of players in the establishment.(II (n tag n Safety Suggestion n Kaizen Quick) /(n operators)(3)The Effectiveness Management Index EMI provides ameasure of the response to suggestions from themanagement and improvement opportunities that emergefrom the application of the methodology. In fact, this indexis the ratio between the number of closed projects and thenumber of projects opened this year and is thereforeexpressed in percentage terms.EMI (n of closed projects) / (n of opened projects) (4)The range of values for this index is between a minimum of60% to a maximum of 100% of projects open and closed.The Target Achievement Index TAI finally determines theeffectiveness of projects closed in the sense that not only tobe opened and closed projects, but these projects must betargeted to the reduction and elimination of losses. It is theratio between the amount of demolished losses through theclosed projects and the total losses in the C matrix of CostDeployment.TAI (demolished Losses) / (total losses)(5)This index, expressed in percentage terms, providesguidance on the achievement of the reduction andconsequent improvement of quality and acts as a control forthe IEG as it provides appropriate guidance on whether theprojects that start breaking down the losses. The choiceof these indicators was dictated by the need to keep undercontrol the main WCM aspects, which form the heart of themethodology, and the need to obtain an indirectmeasure of the size of strategic suppliers.One of these key aspects, is the involvement of operators,which is the basis of the methodology implementation.Moreover, this index allows to understand if it is increasingthe implementation level of methodology within the singleFig. 1. Flow Chart of WCML implementationThis logic implementation of the various pillars of theWCML can be shown in a flowchart that provides theWCML Tree Model shown in the following figure.ISBN: 978-1-61804-064-0374

Applied Mathematics in Electrical and Computer Engineeringsupplier, and it is one of the key dimensions for theselection of strategic suppliers. The other key aspect is thereactivity of management to proposals and improvementsopportunities, which have to be monitored to increase thecommitment to the methodology in question, which is oneof the dimensions that guide the selection of strategicsuppliers. The final element is the goals to be targeted forreducing losses. This should guide the management toincrease the level of implementation of the methodology,that is, as seen, another critical dimension of strategicsuppliers selection. Thus, these indicators are to monitorkey aspects of the methodology and should be to greatlyinfluence the main dimensions that allow to be a strategicsuppliers for the client.losses. We have applied the three steps of WO and in thefirst step we have made 5S and we have applied the Tags tosee all anomalies. In the second Step we have reduce all dirtsources and we have reduce cleaning time. Than we haveapplied Visual Management for material and equipmentwith all advantages of this instrument. Following this, wehave studied the ergonomics aspect of workplace and wehave introduced some ergonomics trucks to reduce MURI.We have studied MURA, irregular movements and MUDAto reduce waste. The solution has been a lock on pallet toreduce the opening and closing of lock (destaco) for doorpanels adjustment and we have had a saving of 2 second onthis operation. We have trained the operators with OnePoint Lesson and Standard Operative Procedure and then,we have standardized all these things. In addition, in thethird Step of WO, we have reduced the operation ofassembly of one person for shift, in order to have anothersaving. The results of this application have shown in theWCML Tree Model Index, in fact the values of these atMay 31 are:4 Case study: WCML implementation in anautomotive supplierThis automotive supplier Company is a global diversifiedtechnology and industrial leader serving customers in morethan 150 countries serving these markets through threebusiness units:- Building Efficiency is a leading provider of equipment,controls and services for heating, ventilating, airconditioning, refrigeration and security systems.- Automotive Experience is a global leader in automotiveseating, overhead systems, door and instrument panels, andinterior electronics.- Power Solutions is the global leader in lead-acid starterbatteries, advanced lead-acid batteries for Start-Stopvehicles and Lithium-ion batteries for hybrid and electricvehicles.This Automotive Supplier Plant is located in the industrialarea of central Italy and its only customer is a big ItalianAutomotive Company. In this plant door panels for twodifferent cars are made. The manufacturing system beforeWCM implementation was a specific ManufacturingSystem (Mfg System) including several instruments of LeanProduction. There was Kanban, 5S, TPM, VisualManagement and other like the instrument of WCM butthose instruments and tools were organized in ten modules.In fact the current state index of WCML Tree Model are:LPI 10 (like Lean Modules of the specific Mfg System)The value of the Lean Use Index is 60% because only sixmodules of this Mfg System are effectively implemented inthis plant.- Involvement Index per operators;- Target Achievement Index 56%- Effectiveness Management Index 49%TAI is shown in the following Figure 3 and it is representedby the yellow area.Fig. 3. Target Achievement IndexInstead, the Involvement Index trend for this case study isshown in Figure 4:LUI So with WCM will fully meet the requirements of thespecific Mfg System.We have applied Cost Deployment and the first loss isNon Value Added in Ultrasonic Welding and precisely inSytrama 1 2 3. So we have opened a Model Area ofWorkplace Organization on Sytrama 2 to reduce theseISBN: 978-1-61804-064-0 1,82 suggestion375

Applied Mathematics in Electrical and Computer EngineeringFig. 4. Involvement IndexFig. 6. Implementation Level of WCMLFinally, the Effectiveness Management Index trend for thiscase study is shown in Figure 5:5. ConclusionsThe methodology of the World Class Manufacturing is not asimple set of tools must be arbitrarily applied within thecompany to reduce waste and losses, but it is a true businessmanagement system that complements, if not substitute, inall business practices. In fact it is as if the various pillars oftechnical methodology were going to replace the variousbusiness entities, thus becoming a reference for thedevelopment of this program. It can highlighting that at thetop of the pillars there is a Safety that is something that intraditional Lean systems is not considered, but thatrepresents a veritable anthill of costs and losses for thecompany, so the focus is concentrated on goal of zeroaccidents is to safeguard the human resources in order toavoid burdensome costs. As for this automotive supplierexperience such as pilot plant of Central Italy in testing thismethodology will certainly be one that will provideguidance in future of WCM, and this Company will be theone that mainly contribute to create the framework tosupport such a system to meet customer expectations withthe customer and achieve World Class standards.Fig. 5. Involvement Index4.1 Results analisysThese results show that was attacked a single loss for 56%of its value, with a growing involvement in model area,although it should increase the management effectivenessand the closure of projects in order to be more reactive inthe management. So it is important to increase thecommitment on WCM because the value of 49% for EMI islow respect to the minimum value of 60%. The managementmust press to activate new projects and communicate thatWCM is important for the continuous improvement of allparts of plant. Also, it is important to increase InvolvementIndex in order to have always involvement in model areaand report anomaly, improvements opportunities and safetysuggestions. In this way we will able to improve theimplementation level of WCM and achieve an high value ofthis strategic dimension. For TAI, instead, there is not yetan elimination of the NVAA loss, so we must open otherprojects to eliminate this kind of loss and involve otherpeople in the methodology after a new release of CD thatwill show the improvements of the application ofmethodology and will give a feedback about the importanceand the effectiveness of WCM. The implementation level ofWCML in this supplier Company is shown in the followingFigure 6 like green areas of WCML Tree Model.ISBN: 978-1-61804-064-0References:[1]. Barbara B. Flinn, Roger Schroeder “World classmanufacturing: an investigation of Hayes andWheelwright’s foundation” Journal of OperationsManagement (17 1999).[2]. Linda C. Hendry, “Applyng World ClassManufacturing to make-to-order compagnie:problem and solutions” Lancaster University UK[3]. Scott Garberding “World Class Manufacturing”Chrysler Group Business Plan.[4]. Schonberger, R.J., 1990. “Building a Chain ofCustomers: Linking Business Functions to Createthe World Class Company”. Free Press, New York.[5]. Schonberger,R.J.,1990.“WorldClassManufacturing: The Next Decade”. Free Press,New York.[6]. Schonberger,R.J.,1986.“WorldClassManufacturing: The Lessons of SimplicityApplied”. Free Press, New York.376

form the basis of Lean Production, such as Value Stream Map, the Kanban, 5S. This index can be called Lean Presence Index LPI. LPI N Lean techniques in the system (1) Lean techniques have found the company, does not mean that the company is lean, because such techniques should be

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