05Sep2016

We need a Revolution in Manufacturing!!!

When I analysed the development of some macro indicators like Sectoral GDP, Manufacturing/Services PMI, Employment, Sectoral FDI Inflows, etc. it was very clear that the Indian Manufacturing Industry must YESTERDAY onwards be better that the industrially advanced economies. In this blog I have picked some questions from our doHow™ APP.

  • CTQ/CTP Characteristics identified?, Characteristics assigned to Process steps?, Characteristics linked to tool?
  • Incoming quality of 5M1E controlled/documented?, Measuring | Setting | Machining/assembly executed as per instructions?
  • The updated list of customer complaints is available? The updated list of internal defects is available?, The updated list of system and process audit non compliances is available?, The potential defects for the respective component/product is derived?
  • Credits(Inflow) | Debits(Outflow) | Balance?, Expected credit(Inflow) - Receivables?, Expected debit(Outflow) - payables?, Likelihood(Probability) of inaccurate Receivables/Payables?, Realistic balance forecast?, Target minimum balance?
  • I can identify the value added and non value added activities?, I have identified the Rejections(Defects) as a potential area for improving productivity?, Useless material transport | inventory | man movement | waiting times have been identified?, Over production/processing has been identified as a area for improving productivity?, Excessive (beyond capacity) and sporadic (uneven) load also has a huge potential from the efficiency perspective?
  • Sufficient orders and parts?, Sufficient Tooling/Consumables?, Sufficient operator/standby?, Good Machine Availability (Breakdowns not serious)?, 100% FTR/ETR?, Quick change-over (SMED) practiced?, Cycle time optimised?
  • Safety point leader?, Quality point leader?, Kitting | Delivery point leader?, Productivity point leader?, Learning | Celebration point leader?, Attendance point leader?
  • Clarity on the impact and benefits of any idea?, Potential barriers to implementation?, Measures to eliminate/minimise barriers identified?, Key players involved in the implementation?, Sense of security and autonomy provided to key players?, Convinced and Committed to implementation?, Failures used for learning and not penalising?
  • I understand that it is very common to make comparisons in life and that the way metrics are computed can be different due to different assumptions leading to making comparisons like to unlike unknowingly?
  • When a job is completed I report immediately the results and events in the proper order of occurrence to my stakeholders even if I am not asked?, I report bad circumstances (negative information) quickly even before the job is completed so that I can caution my stakeholders in advance and get their hints to succeed?, I take appropriate preventive action for errors and am more careful to avoid bad circumstances and I consider the appropriate time of reporting for seeking the next instructions and to better understand my stakeholders thinking?, I provide INTERIM REPORTS when a situation changes or when a job requires a long period for completion or when a job’s completion date is endangered and I report with objectives and their current forecast?, I report the results and status and I clearly state MY OPINION and provide PROPOSALS whenever I escalate so that my stakeholders get the confidence of me being concerned with the intended outcome?, I can perceive what my stakeholders are seeking and provide very relevant and specific information on time as if I could sense their need intuitively?
  • We have defined an organisation and reporting structure that is on the one hand lean and on the other empowered enough with clear Roles and Responsibilities to implement our strategy?, We develop and deploy appropriate easily understandable standards for ensuring safety | consistent quality and delivery as well as compliance to the legal norms?, We ensure adherence to standards and routines through daily checklists (Ex: doHow™) both for in-house and outsourced activities cascaded across the hierarchy?
  • The steps for producing the products/services from input to output have been identified and arranged in the sequence of adding value to products/services?, The waste (Muda - Visible Waste| Mura - Unevenness/Instability/Stress | Muri - Overburden/Excessiveness/Strain) is identified in a walk through?, Direct impacts of every step on Due Date | Function | Quality | Cost of the products/services have been captured?, Input/Output (Info|Material|Docs|doHow-Skill) for each step have been captured?, Set-up time | Cycle time | % First Time Rate | % Every Time Right | Inventory Between Steps have been captured?, The pacemaker (the step that determines which product/service will be produced when) and the bottlenecks (the steps that have excess inventory) are identified?
  • The functions for generating information/decisions from Customer (Need) to Customer (Satisfaction) have been identified and arranged in the sequence of adding value to strategy/decisions?, The waste (Muda - Visible Waste| Mura - Unevenness/Instability/Stress | Muri - Overburden/Excessiveness/Strain) is identified in a walk through?, Direct impacts of every function on Timing | Relevance | Accuracy | Cost of the strategy/decisions have been captured?, Input/Output (Info|Material|Docs|doHow-Skill) for each function have been captured?, Preparation time | Processing time | % First Time Rate | % Every Time Right | Backlog Between Steps have been captured?, The pacemaker (the function that creates the culture in an organisation) and the bottlenecks (the functions that have a huge backlog) are identified?
  • DAILY | WEEKLY | MONTHLY routines derived from strategy?, KEY SUCCESS FACTORS defined to achieve excellence?, Controllable KEY SUCCESS METRICS defined?, All employees trained and competent?, Adherence (KSF) and Results (KSM) regularly monitored?

Having worked in various countries, I experienced that all the manufacturing companies (Micro, Small, Medium, Large and Large Global) in today’s industrially advanced economies regularly answer these questions thoroughly and convincingly at all the levels of the company involving all their people leading to sustainable, consistent, improving quality cost and delivery performance.

But for a very few Indian Companies either a part for a foreign MNC or having adapted these good practices from the industrially advanced economies, the majority have a huge opportunity to support the badly needed disproportional growth of the manufacturing industry.

Happy Reading!