5.3 - Lean Production Flashcards
Define lean production
simply means efficiency and the elimination of waste. It is an approach to production that was introduced by Arthur Deming to Japan and perfected in Japan.
Manufacturers who apply lean production methods use less of everything that is involved in production, from labour, machines, space, time, suppliers and especially inventory.
What is the main feature so of lean production
Less waste and greater efficiency
Define less waste
the concept of having less waste implies that when applied to material; less of the materials used in production are discarded. Overall waste does not add value but instead raises costs and if possible should always be reduced or eliminated.
What are 4 forms waste can come in
➢Labour that is useless and not productive
➢Capital that is useless and not productive
➢Material that is discarded
➢Activities that cause Labour and capital to be less productive
Define greater efficiency
Efficiency means less costs are incurred. Efficiency in simple words, involves controlling your costs, which is just as important as increasing your sales revenue.
To achieve greater efficiency, costs must be understood and their sources controlled. With greater efficiency the organization’s resources will be better used.
➢Physical resources – for example less space for storage or no storage (keep less stock!)
➢Human resources – for example reducing travel times between venues
➢Financial resources - not holding that much stock will cost the firm less
What are the 2 methods of lean production
- Continuous (kaizen)
- Just in time (JIT)
What is the kaizen concept
a Japanese concept in management, Kaizen, which means continuous improvement is a concept that applies to all areas of management and even goes beyond the business environment to include activities that are outside of the business that may have an indirect impact of the business itself (i.e. work-life balance)
What elements does the kaizen concept focus upon
Kaizen is an umbrella concept that implies continuously seeking to improve upon all the elements that affect a business and not a one-time fix. This approach to continuously addressing and improving upon any imbalances, results in more worker productivity.
What is the key aspect to making the kaizen work
For Kaizen to work it must be inclusive to all levels of hierarchy, “no blame” is attached to the problems or issues, systematic thinking is needed and the focus should be in the process NOT in the product.
Define just in time concept
Just-in-times (JIT) - Essentially it is exactly what it means, the delivery of raw materials just when it is needed. The thinking behind JIT is the elimination of inventory (stock) build-up. In other words, if a business has to stock-up on raw material, only when the raw material is sold does it add any value. Therefore, raw material used in production is useless resource and it’s costly for the firm.
How does the JIT affect costs
Getting rid of this cost entirely is impossible, because costs for raw materials must be incurred in the manufacturing process, however, accumulated costs can be reduced to when they are needed, which is the thinking behind JIT.
( i.e. a business may order very large volumes of inventory that ties up cash, the sitting stock will also require storage space, workers, and could also be subject to deterioration)
What is the cradle to cradle
means of protecting the ecosystem and nature through a system that is in principle waste free. This is a mimic of nature whereby the metabolism of the planet is self-sustaining and complete. Another term used to refer to the Cradle to Cradle design is regenerative design.
What is quality control
Quality control is very important for consumers willingness to purchase a product or service. If a business has a good image and reputation for quality, the likelihood that consumers will be loyal and repeat their purchases is very high (i.e. your favourite fast food restaurant. At some point you will expect the same level of quality to be matched at every outlet/restaurant).
Businesses take the concept of quality control and Total Quality Management very seriously. And nowadays, thanks to a quality revolution the concept has been moved to quality assurance, which refers to “assure” the customer the product is still the best!
What does the term quality specifically suggest that a product is
- reliable
- safe
- durable
- innovative
- value for money
What is the concept of quality control vs quality assurance
- quality is controlled by one person carrying out an inspection after the production run has been completed
- quality is assured through the organisation, on one person is control of quality - instead the whole business focuses on it
