Manufacturing Excellence

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Shanghai, China

We call “industry” a defined set of processes that combines machines, labor, material and energy in a systematic way for the creation of something of value for the Customer.

Some industries need to invest a far bigger part of their assets – if compared with the other parts - in production lines and machines to create value. Examples of these industries are a steel manufacturer, a cement factory or a dyeing plant for fabric. These industries are very roughly characterized by a substitution value which is higher than the total transformation cost of one year. We call these industries “CAPITAL INTENSIVE”.

Shanghai, China

In some other industries, by contrast, the labor cost far exceeds the other parts needed to create value. Examples of these industries are a plant that sews shirts or assembles sunglasses. We call these industries “LABOR INTENSIVE”.

Many industries are both CAPITAL and LABOR INTENSIVE, especially in these last years when the complexity of the final products and the need to concentrate most of the operations in one location increased. There are still some more additional specific categories for other industries, like those related with aluminum where the energy part far prevails, and the jewelry where the material part far prevails the rest, but the two main categories of Capital and Labor encompass the major part of World industries.

Shanghai, China

 

We define as MANUFACTURING EXCELLENCE the ability to use at its very best the four resources: machines, labor, material and energy.

To provide evidence of how close or far the manufacturing processes of a Company are to excellence, ŌdeXa has elaborated a set of metrics that help identify the gaps and provide credible benchmarks for many sectors.

 

Toward Excellence in a CAPITAL INTENSIVE area

Shanghai, China

Numerous experiences with our Customers and many visits in Japanese manufacturing plants have consciously led ŌdeXa to adopt for this area the reference discipline of TPM (Total Productive Maintenance ®©).

ŌdeXa implements TPM strictly in accordance with its originator JIPM (Japan Institute of Plant Maintenance, part of JMA, under the METI, Ministry of Economy, Trade and Industry, Government of Japan)

ŌdeXa experienced consultants, including certified JIPM TPM Instructor #006, have accompanied more than 25 Plants to challenge and subsequently achieve various levels of the JIPM Award System.

ŌdeXa believes that TPM is the most comprehensive and proven discipline to follow a systematic evolution toward Manufacturing Excellence in a Capital Intensive area.

Some Customers ask ŌdeXa to implement selected parts of TPM before challenging the Award System and smoothly advance into the whole discipline. The good news for our Customer is the availability of relevant hidden capacity inside the existing assets, reducing or completely avoiding the need for new investments.  

Shanghai, China

Our approach consists in a Preparation phase, where we establish metrics based on Cost Deployment and other target setting methods together with the Customer, launch few Pilot teams and create awareness on the gaps.

In three subsequent phases, we install and expand the transformation.

The Management Criteria and the Pillars are defined and established throughout the organization according to the needs and to the potential of the Employees.

The Employees are motivated to attend the “journey” toward Excellence because now they discover to have a primary role in the transformation.

The Managers are happy because they glimpse sustainable and long lasting results.

Should the Customer decide to challenge the JIPM Award System, an independent third party would certify its level of Excellence.

Shanghai, China

Toward Excellence in a mixed CAPITAL & LABOR INTENSIVE area

The identification of the priorities, approaches and departments where to start when dealing with a mixed Capital & Labor intensive industry requires some preliminary investigations. Starting immediately by applying the Lean Production principles on the entire factory will lead to useless efforts and no results if the capital-intensive area has an Overall Equipment Efficiency in the 50-60% range or lower.

Activating a TPM initiative on the capital-intensive area while not balancing a dizzy assembly area will bring inconsistent results.

To get the right clues it is necessary to implement the basics of Cost Deployment, which ŌdeXa Consultants contributed to define at its very beginning in the 90’s.

ŌdeXa is the best-qualified partner to lead the preliminary studies to select the right approach.

Shanghai, China

 

The Lean Production philosophy derives from the Japanese manufacturing industry.

The term was first introduced by John Krafcik - a quality engineer in the Toyota-GM NUMMI joint venture in California - in his 1988 article, "Triumph of the Lean Production System".

Krafcik's research was continued by the International Motor Vehicle Program (IMVP) at MIT, which produced the international best-selling book co-authored by Jim Womack, Daniel Jones, and Daniel Roos titled “The Machine That Changed the World”.

 

ŌdeXa’s Consultants have implemented dozen of Lean Production initiatives and are proud to show on our Customers’ shop floor.