2.3.3 efficiency and competitiveness using lean production Flashcards
What is lean production?
The process of minimising waste during the stages of production, with the aim of reducing costs.
What strategies can be used in lean production? [3]
- Quality control
- Quality assurance
- Total Quality Management (TQM)
What is quality control?
Refers to the process of checking products to ensure they meet a minimum standard.
How might quality control be carried out?
Products might be inspected during and after the production process.
What is the negative of quality control?
It suggests the firm is aware of the potential for mistakes but haven’t done anything to solve.
What is quality assurance?
The commitment, between the design, production and marketing sections of a production process to collaborate. This is with the aim to improve quality + reliability of the product.
What is the benefit of quality assurance?
It replaces the need to monitor output and check the quality of a finished product since quality becomes a central part of the production process.
What is the aim of TQM?
To create responsibility, in both the individual and collective stages of production, for quality.
Every team involved in production is considered to have responsibility for the quality.
How is TQM monitored?
Each stage of production is considered to be a customer, who has to be satisfied by the preceding stage. It is the final customer who determines the quality of the product, and the customer has to be satisfied.
What is Kaizen production?
It is ‘continuous improvement’, and an approach which involves introducing small alterations in the business with the aim to improve quality and efficiency.
It places emphasis on getting things right the first time round.
What are the positives of Kaizen production?
- Small improvements are unlikely to need major capital investment
- Small changes are likely to have larger impact on reducing waste and increasing productivity
- Encourages employees to take responsibility and ownership of their work, which could enforce a strong team working culture
What does Just In Time production do?
Applies lean production to the management of stock. It reorders small quantities of stock, so less stock is held at any one time.
What are the benefits of JIT? [5]
- It only orders inputs when they are required, based upon consumer demand, which reduces costs of holding stock.
- It builds a strong relationship between the firm and its suppliers
- Firm spends less time checking production since they focus on ensuring the work is done well in the first place
- Only as much stock as is needed is stored, meaning the firm allocates less working capital to stock
- Stock is less likely to perish or become obsolete
What are the disadvantages of JIT? [4]
- Requires efficient handling of stock to be effective
- Firm begins to rely heavily on suppliers
- Cannot afford to make mistakes in production
- Might need complex stock systems, which could be computerised
What are some advantages of lean production?
- Reduced costs, so the firm can reduce prices for consumers.
- Quality improves
- Staff might feel more motivated
