World Class Manufacturing
• Everyday the markets are becoming global
• Business and operations accordingly become global
• A multi-national corporation is a firm that has extensive involvement in international businesses in more than one country
• A global company is a firm that integrates operations from the world as a single market place.
• Objective of global operations
ü Reduce cost (labour, taxes etc)
ü Reduce risks (foreign exchange)
ü Improve supply chain
ü Provide better goods and services
ü Attract new markets
ü Learn to improve operations
ü Attract and retain global talent.
• The various factors affecting the global conditions are:-
ü Reality of global competition
ü Quality customer service and quality challenges
ü Rapid expansion of advanced manufacturing technology
ü Continuous growth and importance of service sector
ü Scarcity of production resources
ü Social responsibility issues.
• The global conditions facilitate the company to form strategic alliances with the foreign companies to exploit global business opportunity:
ü World class company uses T.Q.M culture for perfect quality
ü It develops quickly innovative products and responds quickly to customers need.
ü Use of ISO 9000
ü JIT manufacturing to reduce inventory costs and makes their operations flexible.
ü The uses of automation in production and service operation (manufacturing technology and information technology) .
• Advanced production technologies used for world class manufacturing:
ü Computer Aided Design (CAD)
ü Computer Aided Manufacturing (CAM)
ü Flexible Manufacturing Systems (FMS)
ü Automated Storage and Retrieval systems (ASRS)
ü Automatic identification systems: (AIS).
• Essential Steps for World Class Process
– Design and development of process
– Validation of process – proving its capability to produce amount but which meets customer
– Controlling the process
– Periodic Review of the Process
– Improving the Process as Necessary
World Class Company is process orientation since right process gives right result.