Manufacturing Excellence (ME) is not just the best way to do it today, it is to continually improve to the next level!
If you look around, a lot has been spoken & discussed about ME, Make in India, India's emerging global role in this sector, etc. but if you go to the Gemba (real place where value is being added) you will see that the reality is different & shocking as the growth of this sector has stagnated at 15 to 16% much less than the 55% from services. Moreover, a majority of India’s largest manufacturers don’t return their cost of capital (Exhibit 1), a factor that dampens investment in the sector and makes it less attractive than its counterparts in competing economies, such as China and Thailand. Indeed, China’s manufacturers captured nearly 45 percent of the global growth in manufacturing exports from low-cost countries between 2001 and 2010, whereas India accounted for a paltry 5 percent. When it comes to production process, organizations are not able to match up with the requirement. That is where manufacturing excellence comes in. To achieve higher productivity Lead Time reduction and consistency in quality, organizations need to strategize on improving operations, eliminating waste, creating Lean processes and change the way people think, change their paradigm. With the fluctuation in energy costs and currency rates, there has been a shift on cost competitiveness globally. Therefore, it’s vital for organizations to constantly strive for manufacturing excellence.
India’s product makers must embrace global best practices in operations—while tailoring them to India’s unique environment—to improve the efficiency and effectiveness of the country’s manufacturing investments dramatically. The importance of Operational Excellence in pacing up nations progress cannot be undermined. Continuous flow, OEE (Overall Equipment Effectiveness), OTIFEF (On Time In Full Error Free) & Sustainability have become a topic for discussions in today’s uncertain times. With many organizations already practicing a multitude of lean manufacturing, six sigma and process improvement methodologies to cut the fat internally and boost operational efficiencies, now is the time to instill a new culture, led by senior management, with true employee engagement and with customer-centricity at the heart of everything we all do. Aligning strategy with operational excellence to drive sustainable, enterprise-wide transformation is critical to the successful implementation of ME and it is certainly creeping up the corporate agenda.
ME is considered as powerful catalyst for increasing effectiveness and creating value. Organizations need a ME ROADMAP. Turning every risk, every challenge into an opportunity should be the objective. Kaizen Institute has supported several organizations to design such ROADMAP and achieve their operational excellence goals.
To know more about Manufacturing Excellence or how to drive it successfully in your organization be part of IndiZen 2018, our 9th National Convention on Operational Excellence. This year the theme for IndiZen is "A Roadmap to Manufacturing Excellence (in support to Make in India)". Delegates will get an opportunity to Learn (via Knowledge Sessions), Share (via National Case Study Competition), See (via Benchmark Tours), Network & Celebrate operational excellence. You will be provided a platform to capture the latest industry trends and learn best practices on developing a manufacturing excellence strategy & system, and instilling a robust culture for manufacturing excellence which will help to achieve long term goals.
"Manufacturing excellence requires that manufacturers instill and constantly reinforce within the organization the principle that the system and everyone in it must know their customers and must seek to satisfy the needs and wants of customers and other stakeholders" - Voice of customer!
In case you missed it, our last post was on The 6 Sliding Scales of Priorities in Different Cultures.
And, if you wish to read & learn more from our blog, click here to follow our blog by subscribing the same.