5.3 Lean production and quality management (HL)

Question 1

Lean production?

Answer 1

An approach to operations management which aims to cut waste and promote maximum efficiency.
(first developed by Toyota)

Question 2

The continuous improvement method of lean production (keizen)

Answer 2

A systemic method, continuous change, as opposed to occasional changes. This approach must include all levels of hierarchy and focusses on the process rather than the end product.

Question 3

The just-in-time method (JIT) ?

Answer 3

Reduces the amount of stock held by ensuring products are made only when ordered.

Question 4

Kanban?

Answer 4

Kanban is a system of massages which supports JIT. It aims to ensure a steady flow of production, without any waste.

Question 5

Andon?

Answer 5

A system of signals (visual, audio etc), which will inform workers of a problems in the production process to be resolved ASAP

The solution is entered in the database to refer if
happens again.

Question 6

Cradle-to-cradle?

Answer 6

Cradle-to-cradle design and manufacturing is the concept that once products are used, they should be entirely recycled to create the same product again.

Question 7

Purpose of quality control and quality assurance ?

Answer 7

These are aimed to ensure that products and services are reliable, safe, durable, innovative and offer value for money.

Question 8

Quality control?

Answer 8

● Inspecting
● finished products
● to check they
● meet the
● desired level of
● quality.

Involves in particular:
● one person responsible for quality checks,
● tolerates some % of waste/reject, associated with
● assembly line,
● top-down communication;

Question 9

Quality assurance?

Answer 9

A system of setting and monitoring quality standards across the whole production process, involving the whole business, not just one person responsible for TQM.
● NO waste tolerance
● everyone responsible
● cellular/modular production
2 way communication

Question 10

Quality control vs Quality assurance?

Answer 10

Quality control:
● one person responsible for quality checks,
● tolerates some % of waste/reject, associated with
● assembly line,
● top-down communication;

Quality assurance:
● NO waste tolerance
● everyone responsible
● cellular/modular production
● two-way communication

Question 11

A quality circle?

Answer 11

A group of volunteers who meet to discuss ways of improving quality,
Although these are volunteers, the group is formally structured to make enforceable decisions.
May unite members of several modular, cellular production units

Question 12

2 methods of Benchmarking?

Answer 12

Comparing products or services against the products or services of competitors.
2 methods:
● comparing to a successful company (successful at least in the area of concern) that was identified as a model
● comparing against established standards in the industry such as stars for the hotels.

Question 13

Total quality management (TQM) ?

Answer 13

Defined by Edward Deming

An overarching approach to improving quality. It can include a combination of different quality tools, including lean production methods, such as. :
Kanban,
JIT,
Keizen,
Andon etc.

Main characteristics:
● Quality chain: every next stage of the chain considered as
a customer who should be satisfied

● Statistical process control (SPC): Process clear for everybody - easy-to-understand diagrams etc
● Everybody involved
● Market -oriented production

Question 14

4 Methods of lean production?

Answer 14

● Continuous improvement (kaizen) (Toyota)

● Just-in-time (JIT) (Toyota)

● Kanban (Toyota)

● Andon.(Toyota)

Question 15

Types of waste to be avoided?

Answer 15

● time (waiting for the next stage of production, or for some elements to arrive)
● transportation (return of empty tracks)
● products (defected products need to be removed or reworked)
● space (too much stock; “overproduction”)
● inventory (too much raw materials purchased/stored)
● energy
● labour/talent (not optimally using workers’ skills).

Question 16

How to implement kaizen?

Here an overall understanding of the process needed, just several sentences to remmember.

Answer 16

Here an overall understanding of the process needed:
1. To begin with, draw a diagram of value stream (order received->cutting->painting->packaging->dispatch)

2. Choose a process!
3. Apply these 6 S’s to the process:

    3.1. Sort: everything is sorted and unneeded 
            items discarded!
    3.2. Straighten: everything has its place!
    3.3. Shine!
    3.4. Standardise! - try to make good decisions 
     recorded and repeated 
   3.5. Sustain!
    3.6. Safety!

4. Discard all waste (explained on another card)
5. Design a improved process
6. Measure the difference

Choose a
Additional insights:
1. Appoint people formally responsible, particularly for the revision of established standards or diagrams etc. but in general it should be responsibility for everyone
2.Suggestion boxes
3. Competitions among workers to find most suitable ways
4. no blaming culture

Question 17

Planning Tool (from 1.7) that could be used with Kaizen?

Answer 17

Fish-bone

Question 18

Limitation of kaizen (continuous ..improvement)

Answer 18

● Employees may hesitate to point to problems and to make suggestions in order not to attract blames on themselves or on co-workers
● Law level of commitment
● Not appropriate culture or management style (e.g. lack of trust if autocratic style)

Question 19

Stock control methods?

Answer 19

● JIC, which means “just-in-case” was introduced: holding reserves of both raw materials and finished products in case of a sudden increase in demand (or of a problem in production or in the supply chain)
● JIT: avoiding stock by being able to get supplies only when necessary, and to produce only when ordered

Question 20

Purpose of stock control methods vs Just-in-time?

Answer 20

To maintain balance between too high and too low stock levels . (JIT alone does not consider buffer stocks).

Question 21

Two main benefits of less waste ?

Answer 21

No waste of space in storage facilities
and
greater efficiency - not having money tied up in stock.

Question 22

Kanban cards vs QR codes?

Answer 22

Colored Kanban cards were used to be collected and distributed in almost automated ways to let workers know, what needed to be done.
Today programmed massaging and QR codes are widely used.

Question 23

Disadvantage of Andon?

Answer 23

Minor problems may take attention of more workers than needed
Or ambiguous division of responsibilities (who exactly should react?)

Question 24

Limitation of cradle-to-cradle (C2C)?

Answer 24

There is some scepticism that this concept may not always be sustainable, because of :
resource scarcity
closed groups of products for recycling
and inefficiency
Possible lack of customers

Question 25

Quality revolution?

Answer 25

Trend form Japan 1945
It is no necessary to aim at high and market or exceptional quality. Any product should be of a perceived good quality
Edward Deming - the father

Question 26

What is meant today by the term quality?

Answer 26

Suggests that a product is:
● reliable – it is not going to break down
● safe – it is not going to fail
● durable – it is going to last
● innovative – it is leading the way in terms of functionality or design
● value for money – you get what you pay for.
● differenciated

Question 27

Quality control vs quality assurance?

Answer 27

QC involves one person responsible for quality checks, whereas QA involves whole teams (quality circles);

QC tolerates some % of waste/reject, whereas QA tries not to have any reject

QC associated with assembly line, QA is done in cellular/modular production

QC is one way, top-down communication, whereas QA is more democratic

QC starts and ends in the production department, but QA check suppliers and customers

Question 28

Limitation of benchmarking?

Answer 28

● What is good for one business may be not relevant for another
● Information about competitors may be too old, poor quality etc.

Question 29

JIC?

Answer 29

Means “just-in-case”. was introduced as opposed to JIT: holding reserves of both raw materials and finished products in case of a sudden increase in demand (or of a problem in production or in the supply chain)

Question 30

Limitation of Lean production and TQM?

Answer 30

● Law level of commitment
● Not appropriate culture or management style (e.g. lack of trust if autocratic style)
● Costs of reorganization and trainings

Question 31

Lean production, TQM and global standards?

Answer 31

There are international standards ensuring quality, such as:

ISO 9000 (family of standards, including such as ISO 90001)

Question 32

Benefits of internationals standards?

Answer 32

● easier to gain trust in other states and export
● better profit margins
● better marketing in general

Question 33

Benefits of JIT

Answer 33

1. Efficiency use of the working capital
2. Improved cash-flow

Question 34

Limitation of JIT plus 1 example

Answer 34

1. There may be demand and no stock to sell
2. Unexpected disruption of a supply chain

ex. the COVID-19 pandemic has revealed the method’s weaknesses. As trade was disrupted by lockdowns and travel bans, companies have found managing its supply chain to be incredibly difficult.

Question 35

A retail company that markets office furniture orders the furniture from the manufacturer only when a customer makes a purchase.
What type of lean operation methods is this?

Answer 35

JIT

Question 36

Starting as Apple’s chief operating officer (COO) in 1998, Cook pulled the company out of manufacturing, closing Apple’s warehouses and factories around the world. He opted instead to establish relationships with independent manufacturing contractors.

Cook’s supply chain improvements reduced the amount of time Apple’s inventory sat on the company’s balance sheet, which went from months to days.
To which method of lean production indicates this shift?

Answer 36

JIT

Question 37

The owner of a restaurant is analysing and comparing the on-line reviews on competitor restaurants but only of good ones. What is the term for this action?

Answer 37

Benchmarking

Question 38

TQM vs keizen?

Answer 38

TQM features primarily focus on customer’s satisfaction through improvement of quality. It is both a top down and bottom up approach,

whereas

kaizen is processes focused and a bottom up approach of small incremental changes

Question 39

A worker on the working zone 17 noticed that his machine did not cut properly, without moving from place, his pulled the cord above him. On the big board with numbers in the production hall the number 17 got red. Technician came to enquire what happened.
What system is described?

Answer 39

Andon