TQM ASSIGNMENT

LITERATURE REVIEW
ON
WORLOD-CLASS
MANUFACTURING

Submitted on,
30 SEPT 2013
Submitted by,

Submitted to,

TISON ANTONY

Dr.A.VISWANATHAN

S 3 Operations

OPERATIONS

TIM

TIM

WORLOD CLASS MANUFACTURING

WCM can be defined as best practice and can be used to describe best manufacturers in the world (Todd, 1995). World
Class Manufacturing is a different set of concepts, principles, policies and techniques for managing and operating a
manufacturing company. The term World Class Manufacturing was created by Hayes & Wheelwright and Schonberger, to describe the technological capabilities that had been developed by Japanese and German companies, as well as U.S. companies that
had competed on equal terms with Japanese and German companies. The term WCM was used because these companies have
achieved an out- standing performance in their global competition, resulting in the concept described as World Class.
It is driven by the results achieved by the Japanese manufacturing resurgence following World War II. It primarily focuses on
continual improvement in
1. Quality;
2. Cost;
3. Lead time;
4. Flexibility;
5. Customer service;
6. People motivation;
7. People development & Safety and
8. Continuous Improvement
Companies engaging in World Class Manufacturing strategies focus on improving operations, strive to eliminate waste and create
lean organizations. This often results in higher productivity. But these companies also focus on speed of total throughput from
order capture through delivery setting new standards for delivery without the heavy dependence on inventory. Sequential
methods of performing work are being replaced with concurrent methods to compress time, and functional and hierarchical
divisions of duties are being replaced by teamdriven activities.
World Class Manufacturing is a processdriven approach to improving manufacturing operations. It is often confused to
mean standards of quality and image. WCM includes successful competition and profitability in a competitive international
environment.
However characteristics of an organization with WCM as: improved profitability, training, designing products, best
quality, rapid reaction against competitors, manufacturing programs, paying attention to customers needs, reasonable prices, due
delivery, flexibility, quality management, reducing goods supply, production cost, innovation, strategy, systems and structures,
accountability, measuring performance, key values and goals, culture, and competitors.
Determining the position of manufacturing processes at the world class and its relevant gap, the ESCAP model which is
usually used for evaluating technologies against best practice at the global level was generalized for this purpose (generalizable to
all industrial, commercial and service activities). For this purpose, a formula called Situation Contribution Coefficient for World
Class Manufacturing was developed.
This proposed model measures all the important factors of success for achieving WCM which can be called the
contribution for achieving WCM and a coefficient called Situation Contribution Coefficient can be defined for it. It defines the
contribution of each factor in achieving WCM as follows:
SCCWCM = XBX (1),
where X is the score for the contribution of each factor and B is their weight or intensity which shows the intensity of the
contribution of each factor in SCCWCM scale.
Situation Contribution Coefficient (SCC)
World Class Manufacturing (WCM)
Some features of a WCM are Customer service (OTIF or stock availability) will be 99% or better. Regularly ask their
customers about the level of service and, as a matter of routine, seek ways to continuously improve it. Will they Ship only the
quantity needed by their customer. Will be able and willing to offer kanban shipments to their customers if requested?. Sales staff
will actively promote world class manufacturings demonstrated benefits to the customers. Will they have an active lead time
reduction group? Everyone in the company knows about the key customers and what differentiates the companys products and
services from the competition. All staff who are in contact with customers will have the authority an empowerment to resolve
customer problems. Will they have formal monthly sales and operations planning (SOP) process chaired by the Managing
Director? Business plan and financial budget will integrate with the sales and operations plan. Will they have a master production
schedule which is managed out to at least the cumulative lead time and integrates with the sales and operations plan. Material
requirements planning will cover every manufactured or purchased part and product consumed in the manufacture and shipment

of their products to their customers. All planning and control systems are updated daily. Will eliminate shortage sheets, rush
sheets, etc.
The integrated change model provides a comprehensive methodology for large scale change and implementation of time based
strategy. It provides the manufactures becoming world-class.
World class manufacturing is based on twenty pillars.
Each technical pillar must achieve a certain goal and they have full support from managerial pillars. With managerial pillars are
requirements have been prescribed that needs to be met in order to gain better working conditions and progress of technical
pillars.
Ten managerial pillars in short are foundation of WCM:
1) Commitment If the board members are not aware of or do not supports the management in their objective of achieving
world class levels of performance, the company is doomed to fail.
2) Involvement All the people are not only aware of the goals and objectives of the business but they are a part of
achieving them.
3) Communication Before people can commit to a concept or an ideal they need to be told about it. They need to
understand the hows and the whys of a decision and an objective.
It is important for people to know how well they are performing against their objectives and also how the overall business is
progressing towards its goals.
4) Understanding Understanding what and where problems are is the starting point for making improvements.
5) Measurement Measurement is key to quantify problems and prioritize them and to determine the effectiveness of
improvement activities. It is necessary to measure performance before and after implementation to determine if and to what
extent the changes have improved performance.
6) Deployment Deployment relates to how objectives are translated into action.
7) Implementation Implementation of right solutions with rigor by right people to identified problems is central to
success. People can also learn things better by doing them and grow.
8) Evaluation Evaluation needs to be an integral part of the improving process to see whether the identified problems have
been solved.
9) Standardization Once the evaluation cycle iscompleted, it is time to standardize the method to manage the process to
sustain the obtained result after solving the problem and not to have the same problem again.
10) Documentation Documentation is to accumulate created knowhow to prevail and use it in other area and in the
future.

The 7 steps of WCM way:

1. Identify What problems need to be addressed
2. Detect Where they are
3. Prioritize them based on cost deployment
4. Analyze them and choose Right methods
5. Estimate How much they cost to be solved
6. Implement solutions with rigor
7. Evaluate the achieved results against the original objective.
World Class Manufacturing is not a cure and should not be accepted as a religion. This is an operating strategy that if it is
properly applied, gives a new dimension of production which corresponds to rapid inclusion of new high quality products, faster
decisions and increased productivity products. WCM system is based on systematic reduction of all types of costs and losses
from the contribution of all employees and the precise use of methods, standards and tools required by world class production
In a world class company, there are a few positive differences in many aspects from other companies.
There is no short cut to become a world class one. The essence of success is to do right things thoroughly. Company should not
make wrong efforts but right efforts to become a world class one. To apply WCM gives a way to become a world class one. For
this company must create competent leaders.

INDEX

1. S.M. Seyed Hosseinie, A.N. Mosleh Shirazi, A.Toloie Eshlaghy, M.H. Mehran (2012). A
Comprehensive Model for Status Assessments Gap Evaluation in the World Class
Manufacturing -- Based on Modifications Development of ESCAP Approach.
Management Science and Engineering, 6 (3), 6-9. Available from
http://www.cscanada.net/index. php/mse/article/view/j.mse.1913035X20120603.1035
DOI: http://dx.doi. org/10.3968/j.mse.1913035X20120603.1035
2. Richard J. Schonberger,(1996). World-class Manufacturing: The Next Decade. New York,
Free press. 37, 3; ABI/INFORM Global, Page 93.
3. Taking Steps to Achieve World-Class Manufacturing and Overcome the Competition
Ligus, Richard G Industrial Management; Sep/Oct 1992; 34, 5; ABI/INFORM Global pg.
12.
4. World-class manufacturing in Maryland Anonymous IIE Solutions; Mar 1999; 31, 3;
ABI/INFORM Global pg. 16.

5. America's Best: Industry Week's guide to world-class manufacturing plants Tulip, Sam
Supply Management; May 8, 1997; 2, 10; ABI/INFORM Global pg. 38.
6. America's Best: Industry Week's Guide to World-Class Manufacturing Plants Wiersema,
William H Electrical Apparatus; Jun 1997; 50, 6; ABI/INFORM Global pg. 67.
7. Why MRPII hasn't created world class manufacturing ... Where do we go from here?
Maskell, Brian H Management Accounting; Nov 1993; 71, 10; ABI/INFORM Global. pg.
48.
8. Barbara B. Flynn, Roger G. Schroeder, E. James Flynn, Sadao Sakakibara,Kimberly A.
Bates International Journal of Operations & Production Management (impact factor:
1.13). 06/1997; 17(7):671-685. DOI:10.1108/01443579710175592.
9. Slavko Arsovski, Ivan Dokic, Ssnezana Pesic Dokic. International Journal for Quality
research. QUALITY IN WORLD CLASS MANUFACTURING.UDK - 005:658.56.
Short Scientific Paper (1.03).
10. Luan Carlos Santos Silva, Joo Luiz Kovaleski, Silvia Gaia, Manon Garcia, Pedro Paulo
de Andrade Jnior Cost Deployment Tool for Technological Innovation of World Class
Manufacturing. Journal of Transportation Technologies, 2013, 3, 17-23 doi:10.4236/
jtts.2013.31002 Published Online January 2013 (http://www.scirp.org/journal/jtts).