World Class Manufacturing WCM

World Class Manufacturing (WCM) is a structured, rigorous and integrated production methodology adopted by FCA plants worldwide, which involves the entire organization, from safety to environment, maintenance, logistics and quality. The primary objective of WCM is continuous improvement in all areas of production in order to guarantee the quality of final product and meet customer expectations. Projects developed under the WCM methodology – which rely on a high level of employee involvement – target the elimination of all forms of waste and loss with the ultimate objective of achieving zero accidents, zero waste, zero breakdowns and zero inventory.

WCM is a production system where:

1. Safety is a basic value
2. Customer expectations are heard within the plant
3. Leaders apply standards with method
4. Waste and loss are not accepted
5. Methods are applied with rigor
6. All anomalies are made visible
7. People involvement is the engine of change

From https://wcm.fcagroup.com/

Origins
Theory of management techniques for improving the efficiency of work processes in a scientific way was first introduced by the American engineer Frederick Winslow Taylor in “The Principles of Scientific Management”,1911. His pioneering work in applying engineering principles to factory production led to the development of what is now known as Industrial engineering.
A significant improvement were made between 1945 and 1971 in Japan, where Taiichi Ohno, adopting concepts of Just in Time (JIT), Waste Reduction and Pull System, developed Toyota Production System (TPS).
"All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non- value-added wastes."
- Taiichi Ohno
TPS also inspired creation of the term “Lean Manufacturing”, or “Lean Production” , which was introduced for the first time in 1988 by John F. Krafcik in his  article “Triumph of the Lean Production System”, which contains theories and methods theorized by Ohno for Toyota. This term is now widespread thank to the best seller published by James P. Wolmack, Daniel T. Jones and Daniel Roos in 1990: “The Machine that changed the World”. Lean Manufacturing means managing operations by continuously reducing wastes to maximize the Value/Cost ratio. A process is considered “Lean” if it uses the minimum required amount of resources while keeping required quality and respecting schedules.
Many Western Companies adopted Japanese methods, and started to develop their own models of “Operational Excellence”. One of the firsts was Total Quality Management (TQM) adopted in the late 1970s by several U.S. Government organizations. This theory, developed firstly by William Edwards Deming who published “Out of the Crisis” in 1982. TQM methods are Client oriented and promote high involvement of people using systematic approaches. Many other models of “X-Production System” were developed. One of them is World Class Manufacturing.
The term “World Class Manufacturing” was first used in 1986 by Richard Schonberger, in his “World Class Manufacturing: The Lessons of Simplicity Applied”, in which he collected his experience of companies who adopted “Kaizen” methods for continuous improvement with the target of reaching the Excellence in production. Lately this term was adopted by Japanese professor Haijime Yamashina to identify his new Model of Operational Excellence theorized in the U.S. around 2000 and now adopted by several Firms leaders in their market.
Mission
WCM is a structured production system finalized to eliminate all types of wastes and losses by applying standardized methods for long lasting improvements. The model aims to Customer satisfaction and creation of value, involving the entire organization to increase people awareness and participation for increasing knowledge and sense of responsibility. WCM Association, to enforce competition and participation of each plant and verify the achieved targets, uses a system of Audits, which evaluate different performance levels following a schematic objective procedure. These Audit give a score to tested plants called Methodology Implementation Index (MII). WCM structure is divided in 10 Technical Pillars and related 10 Managerial Pillars; each Pillar after the audit receives a score from 0 to 5 as function of level of implementation of methodology:

1. Score 0: No activity made
2. Score 1: Reactive approach
3. Score 2: Preventive approach in few model areas
4. Score 3: Preventive approach extended to all important areas
5. Score 4: Proactive approach in few model areas
6. Score 5: Proactive approach extended to all important areas

The sum of the Score of each Pillar gives the MII and represent the Plant Score (from 0 to 100). WCM divide plants in five levels of Methodology application:

1. 0 – 49: Method application still at base conditions
2. 50 – 59: Bronze Medal
3. 60 – 69: Silver Medal
4. 70 – 84: Gold Medal
5. 85 – 100: World Class

The goal of each plant is to achieve World Class level, this is possible when each Pillar rigidly applies standard methods in all important areas with a proactive approach in order to have “Zero” problems.

Structure
WCM is a guide to the Total simplification of all activities, an idea based on Total Quality Management finalized to obtain zero: It uses methods of Total Industrial Engineering (TIE), Total Quality Control (TQC), Total Productive Maintenance (TPM) and Just in Time (JIT) to achieve zero waste, zero defects, zero breakdowns and zero stocks.

Total Industrial Engineering (TIE): A system of methods for maximizing performance of labor trough reduction of Muri (unnatural and complicated operations), Mura (incorrect operations), Muda (non-value added operations) . Standard operations must be applied correctly to ensure quality, this is guaranteed by introducing controls and continuously improving the processes. Final goal is to achieve zero wastes
Total Quality Control (TQC): System for optimizing production to guarantee customer satisfaction and zero defects. It is based on various techniques involving both workers and managers to improve and optimize quality and productivity, including close monitoring of the market and client feedbacks with great importance given to customer service.
Total Productive Maintenance (TPM): Global approach to a maintenance system aimed to maximize machine capabilities maintaining equilibrium between efficiency and maintenance costs. These methods attack all possible production wastes due to machine lacks, as stops, leaks, speed reduction to obtain zero breakdowns.
Just in Time (JIT): A guide model for logistics based on Pull system, which aims to produce exactly what the market needs avoiding overproduction typical of Push systems. Final product and materials during manufacturing processes are delivered when required in a precise quantity. JIT target are Zero stock, and reduction of lead time.
PDCA: also called Deming Cycle, it is ann iterative four steps management method for problem solving adopted for Kaizen procedure:

1. Plan: Phase of identification and analysis of the problem, finalized to find the root cause and an effective countermeasure to avoid it to reappear in the future.
2. Do: Application of countermeasures identified during Plan phase.
3. Check: Period of monitoring to verify the effectiveness of proposed solutions.
4. Act: If the solution seems effective and strong during check phase, the problem Is considered solved. Modifications introduced becomes standard and are applied also to similar cases.

These methods retrieved from TQM are included inside World Class Manufacturing structure which can be seen as a temple sustained by 10 Technical Pillars standing on 10 Managerial Pillars.
10 Technical Pillars
Guide the activities of continuous improvement
Safety (SAF)
Cost Deployment (CD)
Focus Improvement (FI)
Autonomous Activities (AM & WO)
Professional Maintenance (PM)
Quality Control (QC)
Logistics & Customer Service (LOG)
Early Equipment Management ( EEM & EPM )
People Development (PD)
Environment (ENV)

10 Managerial Pillars
Guide improvement with correct decisional process and integration among technical pillars
Management Commitment
Clarity of Objectives
Route Map of WCM
Allocation of Highly qualified people
Commitment of Organization
Competence of Organization
Time and Budget
Level of Detail
Level of Expansion
Motivation of Operators
Each pillar is focused on a specific aspect of the Plant, owns defined targets and it is guided with dedicated methods and a common structure divided in 7 steps. Each step identifies a phase and the area of application of the methods. WCM is first applied in few selected areas and then extended to important areas and finally to all the plant. The method applied is first reactive to problems, then is preventive and finally Proactive.
Technical Pillars
First ten pillars are called technical as they act directly for continuous improvement. Activities are strictly connected to the area of interest of the pillar, but with a proactive and cooperative view, for a better integration of other pillars. The role of each pillar will be presented shortly by identifiying the main targets and activities, together with a schematization of the expected 7 steps to follow.
Safety (SAF)
Safety first. In WCM Temple, the first Pillar is represented by Safety. A model based on people involvement and customer satisfaction must give priority to Safety and Health of workers. This Pillar takes care of all the risks actuating procedures and supplying equipment to guarantee an adequate level of protection to avoid accidents.

Targets:

1. Prevent accidents and minimize all potential risks
2. Improve working conditions trough ergonomics and sustainability
3. Support the idea of prevention to avoid health and safety issues
4. Development of people competencies in matter of safety

Activities:

1. Reactive analysis of occurred accidents for root cause identification and introduction of corrective countermeasures
2. Evaluation of all potential risks
3. Technical improvements on machines and workplace
4. Training of people
5. Periodical internal Audit to evaluate safety of equipment

Cost Deployment (CD)
World Class Manufacturing is based on the idea of reducing to zero all wastes and costs. So, after Safety, the Second Pillar is Cost Deployment. It is a systematic method of cost reduction that involves both production and management. CD classifies in a scientific way the costs of losses and wastes and define a priority for reduction plans .
Targets:

1. Identify and classify all losses and wastes of the production system
2. Plan and monitor cost reduction following a schematic order of priority

Find the root causes of all losses and wastes for application of  corrective actionsActivities:

1. Define relations between each process and all possible losses and wastes
2. Identify the root cause of losses and wastes
3. Prioritize losses and wastes as function of their costs
4. Define methods to be applied for a cost reduction plan
5. Evaluate benefits/costs of improvement plans for cost reduction

Integrate  cost  reduction  plans  with  plant  budget  to  improve  cost reduction effectiveness Focus Improvement (FI)
Cost Deployment define the sources of losses and wastes. Focus Improvement pillar works on cost reduction plans defined by CD and starts projects to eliminate losses and wastes starting from the top problems. CD helps FI avoid focus on problems that does not represent priorities. The main tool of FI is the Kaizen approach PDCA.
Targets:

1. Eliminate losses and wastes following the priority scheme defined by CD
2. Improve processes by eliminating inefficiencies and avoiding        non-added value operations
3. Obtain a reduction of costs after FI activities
4. Develop competencies of problem solving involving workers at all company levels

Activities:

1. Identify of team members for each project of cost reduction plan
2. Apply problem solving methods (Kaizen, PDCA) to find corrective actions
3. Monitor the status of each project from the start to the verification of corrective actions
4. Training of people for a better involvement in problem solving activities

Autonomous Activities
As said before, WCM is based on people involvement. Great importance is given to increase responsibilities and awareness of workers. A technical pillar is then dedicated to Autonomous activities, which is divided in: Autonomous Maintenance (AM) and Workplace Organization (WO).
Autonomous Maintenance (AM)
Autonomous Maintenance activities are performed by operator working in production, and not by professional maintainers. These activities concern preventive maintenance on machines, as scheduled inspections, cleaning, functional controls, substitution of defined components and small repairs. The base principle of Autonomous Maintenance is to enhance and guarantee the product quality trough the involvement of people on a good utilization and preservation of the machines.
Targets:

1. Avoid  machine  degradation  to  guarantee  product  quality  and  increase  machine lifetime
2. Involve production workers to maintain and retrieval of machine basic conditions
3. Realize a global management system for all AM operations
4. Improve efficiency of plant trough adequate preventive maintenance
5. Guarantee a total cooperation between production and Maintenance

Activities:

1. Define AM Activities and adequate training to production workers
2. Clean machines from important components to the ones difficult to reach
3. Eliminate dirt acting on its generating causes and improve ergonomic to reach all parts
4. Periodical checks or component substitution to avoid machine degradation
5. Monitor and check leakages and unexpected machine behaviors to help finding a solution
6. Improve inspection quality by increasing competencies of workers

Workplace Organization (WO)
Workplace Organization activities are performed to obtain a better workplace, safe, clean and ergonomic, which can improve working condition and reduce stress and labor effort for the operators. A Better organized workplace also helps avoiding mistakes and non- value added operations. These activities are guided by technical criteria, methods and instruments that allow to retrieve and maintain workplace clean, in order and without useless instruments or stock areas. WO creates standards for the behavior of workers in order to guarantee process capability.

Targets:

1. Improve Safety and Ergonomics of the workplace
2. Avoid inefficiencies due to an unorganized and dirty workplace
3. Involve production workers to maintain and retrieval workplace basic conditions
4. Improve technical knowledge of workers about the product and their workplace
5. Define standard activities to improve efficiency and avoid errors and non-added operations
6. Reduce stock areas adopting a just in time strategy
7. Improve   logistics   and   avoid   operational   mistakes   trough   a   well-organized workplace

Activities:

1. Define WO Activities and adequate training to production workers
2. Clean the workplace removing useless material
3. Identify a place for each important material, equipment and instrument
4. Apply periodically WO activities to maintain adequate conditions
5. Improve standard working cycles by increasing technical competencies of workers

Professional Maintenance (PM)
Autonomous activities can help avoiding degradation of machines and working equipment but major competencies are required in case of major failures. For this reason, Professional Maintenance represents another technical Pillar of WCM temple. With the cooperation of AM and Focus Improvement, Professional Maintenance attacks the breakdowns with a reactive approach. The main target is to develop a preventive system to avoid failures and increase machine useful life. PM organizes maintenance activities to increase duration of components and defines standard to guarantee a proper functioning preventing the degradation with time.
Targets:

1. Avoid all kind of machine stops due to failures
2. Increase machine reliability and efficiency through breakdown control and analysis
3. Guarantee the cooperation between PM and AM to avoid machine degradations
4. Reduce breakdowns and increase of Mean Time To Failure MTTF and MTTR
5. Focus maintenance activities from a reactive to a proactive approach
6. Improve maintenance system by reducing costs related to PM activities

Activities:

1. Breakdown control and analysis
2. Define and continuously improve Maintenance standards
3. Follow a convenient maintenance plan, considering the possibility of a purchase in place of an excessively expensive maintenanceImprove standard working cycles by increasing technical competencies of workers

Quality Control (QC)
QC pillar has the main target of guaranteeing Customer Satisfaction, as it is one of the fundamental principles on which is based the entire WCM. Quality Control  attack quality issues to find their root cause and apply adequate countermeasures. The aim is to monitor the production identifying non-compliances and avoid their reappearing. QC is not based on controls of production but on solutions that help avoid controls, as they are non-added value operations. As a consequence, Quality Control also helps to reduce costs related to reworks and scraps.
Targets:

1. Guarantee quality of product and customer satisfaction
2. Maintain the required capability for each process in the production system to avoid non conformities
3. Reduce defects and rewkorks, and the number of controls without affecting the quality of products

Activities:

1. Define a QA Matrix to list defects in order of priority
2. Analyze defects to find the root cause using QA Matrix priority sequence
3. Apply countermeasures, also to similar cases and monitor the results to guarantee the effectiveness of solutions
4. Help  AM  and  PM  measuring  process  capability  and  supplying  guidance  for evaluations related to product and process quality
5. Train production workers to understand a defect and to avoid mistakes that can cause its appearing

Logistic / Customer Service (LOG)
Another Pillar of WCM Temple is represented by Logistics, which controls all material flows inside and outside the Plant. The main goal is to apply JIT to all areas, in order to maintain an efficient control of all materials, supplying each production process with required material just when it is required. This is done to limit stocks which represent a great cost for the Company, and to help production to avoid mistakes. This can be possible through an accurate analysis and control of the demand, as material supply rigidly follow the production plan with a pull logic. Material flows are optimized and reduced, to avoid both financial costs related to stocks, and risk of material damaging or degradation.

Targets:

1. Supply material to production areas strictly following production plans
2. Improve flows inside and outside the plant to limit material handling and its related risks and costs
3. Reduce stocks and avoid material obsolescence
4. Deliver the right material just in time in each production area

Activities:

1. Analyze flows to find losses and opportunities of improvement
2. Apply  material  distribution  strategies  like  JIT,  KANBAN,  FIFO  to  improve production process and reduce logistics related costs

Improve layout of stock areas, material flows and the shape of containerEarly Equipment Management / Early Product Management ( EEM / EPM )
This pillar is dedicated to the introduction of new machines /products in the production system. It cooperates with Suppliers of the machines and Product Development up to the Ramp up phase, to improve both machine and process reliability, and to avoid future costs caused by an ineffective proactive analysis of all potential problems related to the new machine / product. The aim of the pillar is to reduce costs and time required for new introductions in production process. The role of Early Equipment Management and Early Product Management is similar, but EEM refers to introduction of new Machines and equipment, while EPM is dedicated to new products.
Targets:

1. High reliability of the machines and quality of the product
2. Follow the schedule and allocated budget
3. avoid extra costs after introduction in production process
4. Guarantee a fast and effective ramp up and preventive maintenance cycles
5. Reduce life cycle costs
6. Introduce  machines  with  fast  setups  and  easily  accessible  for  maintenance  and inspection

Activities:

1. Guide introduction of new machines / products respecting schedule and planned costs
2. Define schedule for the new introduction
3. Monitor construction of the machine / development of the product
4. Monitor the installation of the machine in the plant
5. Verify functionalities and define preventive maintenance plans
6. Evaluate risks to avoid extra costs due to failures or production wastes
7. Supervise ramp up period

People Development ( PD )
Humans represents the most important factor influencing the Success of a Company. A Pillar of the WCM Temple is then represented by People Development. Its role concerns people and their technical development, it provides trainings to improve worker competencies on Autonomous Activities or application of QC procedures, but especially on WCM methods. World Class Manufacturing is based on people involvement, this pillar has the task of increase the feeling of responsibility and the proactive attitude of all workers, in a form compatible with WCM to help the continuous improvement of the plant.

Targets:

1. Avoid accidents caused by inexperience or lack of knowledge of the performed operations
2. Guarantee adequate skills and competencies to every worker of the plant
3. Train every worker to WCM for a faster continuous improvement of the plant
4. Reduce human errors introducing Poka Yoke
5. Gain  performances  from  a  higher  satisfaction  and  technical  knowledge  of  the workers
6. Apply correctly Quality Control on processes and products in all areas

Activities:

1. Define competencies and skills required for each role
2. Plan adequate training session in predisposed Training Centers
3. Train Quality workers on application of QC procedures to guarantee quality of products
4. Train PM workers competencies to repair Machines in any failure conditions
5. Train technicians to be able to solve problem related to their areas
6. Guarantee that Trained personnel can transmit to workers their knowledge
7. Train  production  workers  on  autonomous  activities  and  on  use  of  workplace equipment

Environment (ENV)
Last Technical Pillar of WCM Temple is dedicated to Environment. Its main concern is the evaluation of the impact of Plant activities on the environment, considering both immediate and long term. It is an instrument to monitor the performances related to resource consumption.
Targets:

1. Avoid environmental accidents
2. Observe regulations concerning environment
3. Develop the idea of prevention to preserve the environment
4. Continuously improve working conditions from the environmental point of view
5. Improve machine utilization to reduce leakages and energy consumptions
6. Reduce energy consumption and generation of pollution agents
7. Reduce noise in the workplace
8. Give importance to sustainability and recycle materials

Activities:

1. Identify and prevent risks
2. Guarantee application of ISO Regulations
3. Maintain and control environment through periodical internal audits
4. Guide improvements on machines to reduce their consumptions

 

2.3.2 Managerial Pillars
WCM introduces ten managerial pillars strictly connected to the technical pillars, as a support for work and continuous improvement. They are related to aspects as planning, organization, leadership and motivation which are fundamental for the success of technical activities. It follows a brief explanation of the main roles of each pillar:

1. Management Commitment:

This Pillar is responsible for the beginning of the shake-up. It opens a discussion about actual conditions to analyze possibilities of improvement trough changes. It represents the main sponsor for the mutation of present activities and habits, it has to convince the entire organization that a change is necessary. Management Commitment pillar transforms strategical objectives in operative objectives, runs Transversal meetings to guarantee the coherence of daily activities with the organization targets and assign activities to correct resources, guiding the Company toward change.

1. Clarity of Objectives:

As suggests the name of this Pillar, its role is to Define Objectives in a simple and clare way to prevent any kind of incomprehension. Objectives must also be quantified to avoid subjective interpretations, and diffused to every interested person in the Organization. As WCM is based on reduction of losses, Cost Deployment indicates for each pillar an Objective which is translated in KPIs, which is the main instrument of diffusion of the Objective. KPIs are first defined, then diffused and calculated, and after application of corrective actions in case of need they are monitored.

1. Route Map to WCM:

This pillar is based on two factors: Customer Aspectatives and the Mission / Vision of the Company. Starting from these factors it is defined a “Route Map” to follow, a definition of Targets, a strategic pianification of the future of the Company comprehensive of all Plants. This is the base point for the Pillar of a Plant, which target is to develop several “route maps” starting from the “general rout map” evaluating the medium-long period and define proper targets. The following responsibility is to guarantee that all pillars, both technical and managerial, know and follow in the same direction the Route map, with a proactive attitude and a strong cooperation. The increase of motivation and involvment are important factors required to succeed on bringing together all pillars and satisfy required targets without delays from schedule

1. Allocation of Highly Qualified People to Model Areas:

WCM as said before is based on people involvment. The main role of this Pillar is to guide the beginning of Method implementation. Starting from model Areas, Some Experts are in charge of transmitting their Knowledge about methods, procedures and ideas. These competencies must be absorbed by workers of that area and then, the method must be “self-managed”. The role of the Pillar leader is to evaluate performances and effective application of learnt methods, to guarantee a proper advance toward the direction planned with the Route Map. The pillar evaluations are based on KPIs, property of adoption of Methods and instruments, and Team competencies gained trough People Development.

1. Commitment of the Organization:

A part from the Management, a relevant role is given to Organization, this pillar represents a guide for each activity of improvement, acting against tendencies of relying on habits and avoid admitting existing problems, or solving them in an incorrect way. A correct organization teaches people to act against problems with a propositive attitude, helps people to find the solution of a problem starting from their technical knowledge and the method. A good way to improve organization is to involve more people in many projects, for a wider point of view which could be helpful in certain situations, rather than focusing few people in few projects at a time. The organizational guide starts from the pillar leader, to the team, and finally to the entire organization, in which everyone should be trained on WCM and its methodologies.

1. Competence of Organization toward Improvement:

World Class Manufacturing, to reduce losses and wastes exploit several methods and stragegies, which should be objective and systematic, so equal for each similar situation. This pillar evaluate and monitor trough a database the effectiveness of the organizational aspects related to a problem in each aspect, from the method, to related economical requirements. It is important to use the correct instrument offered by WCM in each situation, for example simple problems should be analyzing with Quick Kaizens, it is not correct to open a Major Kaizen, because it would be an unprofitable waste of time. This Managerial pillar is a guide to help the correct choice of the instrument to be used to solve a problem, other than a source of knowledge about the history of projects, both completed and still running. For simpler problem basic instruments should be used, while for project related to situation more and more complex, the instruments suggested get sofisticated and more advanced.

1. Time and Budget:

This pillar develop specific plans to evaluate and monitor times and costs. An average project in WCM has a duration of 3 / 4 months, it is then important to define budget and expected time required for each project, in accordance to Plant annual budget. Time and Budget pillar helps the management of project guaranteeing the required budget and dividing the time of the resources available, to prioritize fast solution projects in order to focus attention afterwards to more complicated ones which give a smaller benefit. This system allows to easily monitor all the costs of the plant and to prevent dangerous delays that can cause extra expenses.

1. Level of Detail:

This Managerial Pillar has the task to analyze the processes deeply in the details losses and wastes after their elimination, in order to find their real root cause. This approach allows to remove definitively the problem avoidinding a potential reappearing in the future.

1. Level of Expansion:

World Class Manufacturing is based on expansion. Each activity it is firstly introduced in a selected area, then it expands until reaching the total plant. Management must follow a Detailed plan of WCM expansion, accompained by a great number of parallel projects defined starting from guidance of Cost Deployment, starting from processes of class AA, A, B up to the entire Plant, and eventually even to external suppliers.

1. Motivation of Operators:

This pillar aims to increase the motivation among operators, as they are the base of the production system and the most determinant members of the organization, as they are directly acting on the product and on the machines, and so their knowledge is relevant even for their eventually limited areas of expertise. Workers must be involved in WCM and trained to application of methodologies to let them exploit their direct technical experience to help the solution of plant problems. This is possible if the worker is satisfied and motivated to add other activities to the basic ones that he is used to perform. This pillar organize teams for small projects among operators with Kaizen used as a guide procedure for all activities finalized to the solution of a problem. To avoid absenteeism and low engagement, Management must involve workers, give them the importance they deserve, and inform them of the achieved results as they are part of the Organization. The Pillar also suggest incentives for good application of the methods and for proactive attitude of workers, and promote training sessions and guidance in case of low quality of the proposed solution for a given problem.