Management Accounting - World Class Manufacturing Essay

Management Accounting - World Class Manufacturing - Essay Example Current trends emphasize world class manufacturing (WCM) which highlights maximum manufacturing efficiency in businesses, and customer and workforce satisfaction. WCM is regarded as "manufacturing systems which demonstrates best industry practice( World Class Manufacturing)." Accordingly, a world class manufacturer is a firm which displays excellence in key competitive points like quality, price, delivery speed, delivery reliability, flexibility and innovation. Its main features is the utilization of a total quality management (TQM) approach, highly flexible and motivated workforce, Just-in-Time (JIT) manufacturing philosophy, and the pursuit of satisfying customers at a global level. Consistent with the goal of a world class manufacturer, TQM denotes a set of management practices within the organization which are implemented to ensure the quality of products and services offered. The primary goal of TQM is the production of commodities which consistently meets or even exceeds customer requirements. This feature of world class manufacturing emphasizes process measurement and controls to pursue continuous improvement (John Stark Associates 2000). However, TQM does not just involve the production system or processes of the company but embraces the whole operation of a manufacturing business. Implementing TQM involves modifying the whole organization as it has strong bearing on the culture, attitude, and organization of the company. TQM culture requires the unmatched quality in all aspects of the company's operations "with things being done right first time, and defects and waste eradicated from operations (John Stark Associates 2000)." Important aspects of TQM incl ude customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture (John Stark Associates 2000). A flexible and highly motivated workforce is another essential feature of WCM. As discussed above, WCM as opposed to the traditional manufacturing implements a totally innovative approach in operations which has a huge impact on employees. WCM needs a flexible workforce as these employees will not handle production in the traditional assembly line. WCM often requires teams which work together to finish an output. Specialization of jobs is often displaced in WCM replaced by "job enrichment." This new approach is intended to eliminate boredom and lessen employee dissatisfaction. Job enrichment is geared to "expand the scope of the job with a greater variety of tasks, vertical in nature, that require self-sufficiency (Mione 2005)." Thus, in WCM it is imperative that employees are flexible to take on a more responsibilities. Motivation is also increased as jobs are "enriched" and employees become are empowered. Motivation, in turn is a great factor in the success of WCM. In this new manu facturing approach, employees need to be motivated to excel in their job to produce the best job results. A highly flexible and motivated workforce results into a high quality product which is the main goal of WCM. JIT is a manufacturing philosophy which aims to