Gunn’s Model for World Class Manufacturing Presented by: Group 2 Name Roll No. Mrugank Hathi 029 Sagar Yerunkar 061 Tushar Kothavale 130

Agenda What is WCM Environment? Gunn’s Model Components of Gunn’s Model Case Study

What is a WCM Environment? Sophisticated Customers Global Manufacturing Systems Faster Pace/Scope of Activities Emphasis on Product Quality

Computer Integrated Manufacturing [CIM] Gunn’s Model - WCM 3 Pillars of WCM Computer Integrated Manufacturing [CIM] Total Quality Control [TQC] Just in Time [JIT] CIM is automating and integrating the processes and departments – moving towards horizontal organization TQC is about integrating the orgazniation and being customer centric JIT is about lean production and being agile – eliminating waste

Manufacturing for Competitive Advantage Framework – Arthur Young Suppliers Global Competitors Quality/ Human Resources/ Technology/ Planning Product and Process Design/ Planning and Control/ Production/ Distribution/ Service Integrated Manufacturing Strategic Vision World Class Manufacturing Management Resource Global Markets Customers JIT | TQC | CIM

Total Quality Control Total Quality Control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction Armand Vallin Feigenbaum -> 1950s

TQC →TQM A set of activities with total involvement of all concerned , interlinked into continuously improving processes, producing products and services, fulfilling customer’s stated and implied needs with maximization of internal revenue towards attainment of quantifiable and measurable quality objectives in time Eight Building Blocks of TQM

Computer Integrated Manufacturing Design/Mfg Supporting System CAD CAE Machine Tools NC DNC CNC FMS A-FMS Materials Handling System Automated Warehousing System CIM - Joseph Harrington Computer techniques for complete automation All processes under computer control Digital information tying processes Robots

Computer Integrated Manufacturing Design/Mfg Supporting System CAD CAE CIM Machine Tools NC DNC CNC FMS A-FMS Materials Handling System Automated Warehousing System CIM - Joseph Harrington Computer techniques for complete automation All processes under computer control Digital information tying processes Robots

Just In Time (JIT) ↓Time ↓Cost ↓COPQ 3 Elements of JIT: Takt time: Net working time divided by the number of units ordered for that time One piece flow: Downstream flow:

JIT Thinking Sort Straighten Shine/ Sweep Standardize Sustain Quality at the source Quality & inspection at manufacturing Mistake proofing Aim:Zero Defect A system of setup reduction and quick changeover. Trigger for pull system Functions: Autonomous nervous system Limit over production Visual management Kaizen Metric Source: Just in time thinking principles- Productivity press

Case Study: Outdated Manufacturing practices (1952-1990) Case Background: Outdated Manufacturing practices (1952-1990) Floor Layout – Parking lot (6 planes on left & right) Variety of choices offered ranging from engine choice to spring on the board in cockpit. Operating system used 800 different computers for tracking parts. Co-ordination & communication problems Re-computing parts requirements several times during production. Worked well for mass production but, failed during customization. Characterized by high costs & long production cycles. Reputation for quality & on-time delivery suffered, several technical snags.

Case Study: In 1994 – mfg process improvement initiative (DCAC/ MRM- Define & Control Airplane Configuration/ Manufacturing Resource Management) Improved – mfg process Reduced – cycle time, defects & costs Complex – took 2 years longer to implement than originally anticipated. Failed to reap benefits: Old mfg. procedures Bureaucracy August 1997 - launched price war with Airbus Several orders Problems: Raw material shortage, parts shortage, productivity inefficiencies with recruitment of thousands of new employees Serious disruption of process flow  late shipment of parts  increase in overtime Overtime cost = 30% total labor costs Forced to shutdown 2 assy lines for 737 & 747 for month  $1.6bn loss Lost customers to Airbus Decided to refocus on lean manufacturing

Case Study: 1996 – Phil Condit as new CEO 4 Pronged strategy: Fix the commercial aircraft division’s production problems. Grow the higher margin defense and space division. Regain Credibility on the Wall-Street. Scrap Boeing’s paternalistic corporate culture. Assessment process – current business situation & performance. Formulated implementation plan -‘Airlines should order airplanes the way consumer order automobiles’ TQC Formed a production reform teams. Reliance on employees who worked closely with processes & products. Conducted Accelerated Improvement Workshop (AIW)  training, planning & implementation. CIM 400 computer programs (keep track of parts, drawings)  4 interconnected software packages (manage configuration, mfg, purchasing, inventory) Boeing 777  paperless, 3D CAM software. ‘Cribmaster’ – Inventory mgmt JIT Autonomous Maintenance Workshops (AMW)  operators responsible for daily care Lean Manufacturing Assessment (LMA) workshops  identify improvements Production Preparation Process (3P) Workshops  eliminating waste

Case Study: Benefits: Extending Lean Mfg: 2000  Introduced ‘Moving Line’ Moved planes from one assy team to next place slowly, keeping production at steady pace. (2 inches/ min) Allowed employees to monitor production status any time. Empowered workers to stop assy line when it fell behind schedule. Arranged 30 feeder lines that worked parallel to main assy line. Boeing aims to reduce average time from order to delivery to 6 months Benefit Quantification Inventory reduction $7.5bn$ 6.5bn Manufacturing time reduction 60% Manufacturing floor space reduction 50% Defects reduction 48% Inventory turnover 2  18 per year WIP reduction 100  30 pieces

References The illustrated lean agile and world class manufacturing by: Francoise de Villiers Case studies in Operations Management Volume 1, ICFAI centre for management research, K. Subhadra. JIT Implementation Manual, CRC Press, Hiroyuki Hirano World Class Manufacturing – A Strategic Perspective; Sahay, Saxena, Kumar

Questions? Thank You.