5 - Evolution Of Process Management

Question 1

When was automobile invented and by who

Answer 1

In 1885 by Carl Benz along with contemporaries including Gotlib Daimler, Wilhelm Maybach and Seigfried Marcus

Question 2

6 Characteristics of Henry Ford’s production system

Answer 2

• Mass production
• Limited variety
• Mechanisation
• Increased pay ($2 to $5 each day)
• Workers afford product
• Workplace sanitation

Question 3

What is Henry Ford’s conveyer system

Answer 3

Involves the organisation of all the elements of a manufacturing system (people, machines, tooling and products) into a continuous system

Question 4

Characteristics of Toyota’s production system in the 1950s (4)

Answer 4

• Acknowledgement that smaller lot sizes meant increased down time and would require an emphasis to reduce set ups
• Focuses on elimination of all waste
• Scheduled preventative maintenance
• Promoted respect for people

Question 5

What are the benefits of Just-in-time? (9)

Answer 5

• Reduced inventory
• Eliminate waste
• Simplify processes
• Quality is central
• Flow manufacturing
• Uncover problems
• Preventative maintenance
• Pull
• Layouts to minimise movement

Question 6

What is the 5S process?

Answer 6

• Sort - Involves identifying necessary items and removing unnecessary ones
• Straighten - Locate items where they are needed and limit the amount stored
• Shine - eliminate dirt and dust. Make workplace shine
• Standardise - work to standards
• Sustain - Make 5S a strong habit. Make problems appear and solve them

Question 7

Visual system related to 5S’s process (4) (linked to pokayoke and error prooofing to reduce need for rework, reduce costs (internal and external failure costs)

Answer 7

• Visual indicators (e.g shadow boards)
• Visual signals (e.g stop/go lights)
• Visual controls (e.g parking space lines)
• Devices that guarantee correct response e.g auto cut-off at petrol station

Question 8

What are the three types of waste?

Answer 8

• Mura ‘lack of consistency’
• Muri ‘over-burden’
• Muda ‘waste’

Question 9

What is mura ‘lack of consistency’?

Answer 9

Is concerned with the unevenness or irregularity in production process

Question 10

What is muri ‘over-burden’?

Answer 10

Is concerned with the unnecessary or unreasonable requirements put on a process in poor outcomes

Question 11

What is muda ‘waste’

Answer 11

Is concerned with activities that do not add value to the operation or the customer

Question 12

What are the 8 wastes

Answer 12

• Defects - efforts caused by rework, scrap and incorrect information
• Overproduction
• Waiting
• Non-utilised talent - in relation to people’s talents
• Transportation - unnecessary movement
• Inventory - products not being processed
• Motion - in terms of people movement
• Extra-processing - more work or higher quality that is required by the customer

Question 13

8 Characteristics of a lean system

Answer 13

• Focused on the customer - supplying exactly that they want and when they won’t it without waste
• continuous improvement
• Pull
• Uses JIT produces perfect parts
• Reduces space requirements
• Develops close relationships and educates suppliers
• Develops the workforce
• Reduces the number of job classes and makes jobs more challenging

Question 14

What is total quality management?

Answer 14

Is a climate in which an organisation continuously improves its ability to deliver high-quality products and services to customers

Question 15

What are the different cost categories considered in TQM? (4)

Answer 15

• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs

Question 16

What are prevention costs? (2)

Answer 16

Are the costs associated with:
- training staff and suppliers
- design and redesign of processes

Question 17

What are appraisal costs? (2)

Answer 17

Are the costs associated with:
- Inspection and testing
- Surveying customer satisfaction

Question 18

What are internal failure costs? (3)

Answer 18

Are the costs associated with:
- scrap
- rework
- damage to the plant and equipment

Question 19

What are external failure costs? (4)

Answer 19

Are the costs associated with:
- Rectifying problems on site
- Handling returns
- Processing complaints
- Paying compensation

Question 20

What are the two costs of non-conformance

Answer 20

• External failure costs
• Internal failure costs

Question 21

What are the two costs of conformance?

Answer 21

• Appraisal costs
• Prevention costs

Question 22

Elements of improvement approaches

Answer 22

Question 23

Push and pull planning control

Answer 23

Question 24

5 essential steps of lean

Answer 24

• Identify the feature that creates value
• Identify the sequence of activities called the value stream
• Makes the activities flow
• Let the customer pull product or service through the process
• Perfect the process

Question 25

1st step of lean - Identifying value

Answer 25

Involves identifying how a specific product meet customer needs, at a specific price, at a specific time

Question 26

2nd stage of lean - Identify the value stream

Answer 26

Identify activities that contribute to identified value

Question 27

3rd stage of lean - improve flow (2)

Answer 27

• Is concerned with the uninterrupted movement of product or service through the system to the customer
• Aim to eliminate work in queue, batch processing and transportation

Question 28

4th stage of lean - allow customer pull

Answer 28

Process is responsive to providing the product or service only when the customer needs it

Question 29

5th stage of lean - work towards perfection

Answer 29

Removing waste and improving flow also improves quality therefore overall performance e increases

Question 30

Lean methodology assumptions (4)

Answer 30

• People value the visual effect of flow
• Waste is the main restriction to profitability
• Many small improvements in rapid succession are more beneficial than analytical study
• Process interaction effect will be resolved through value stream refinement

Question 31

What is the focus for the theory of constraints?

Answer 31

System improvement

Question 32

5 steps for the theory of constraints

Answer 32

• Identify constraint - the amount work in queue ahead of a process
• Exploit constraint - improve the process to maximise capacity without major expensive updates or changes
• Subordinate processes - are ahead of the constraint and paced to the speed or capacity of a constraint
• Elevate constraint - further improvement with contemplation of major improvements
• Repeat cycle

Question 33

Theory of constraints assumptions (3)

Answer 33

• Organisation places a value on the speed at which its product or service travels through the system - speed and volume main determinants of success
• Current processes are essential to produce the desired output
• The product or service design is stable

Question 34

Major obstacles to lean, six sigma and theory of constraints (4)

Answer 34

• They address management theory as a secondary or tertiary issue
• Don’t address policies, either formal or informal
• They don’t address how managers are measured and rewarded for process improvements
• They don’t address the general theory of management used by the organisation or an organisation’s values