5.3 Lean production and quality management (HL) Flashcards
Lean production?
An approach to operations management which aims to cut waste and promote maximum efficiency.
(first developed by Toyota)
The continuous improvement method of lean production (keizen)
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.
The just-in-time method (JIT) ?
Reduces the amount of stock held by ensuring products are made only when ordered.
Kanban?
Kanban is a system of massages which supports JIT. It aims to ensure a steady flow of production, without any waste.
Andon?
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.
Cradle-to-cradle?
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.
Purpose of quality control and quality assurance ?
These are aimed to ensure that products and services are reliable, safe, durable, innovative and offer value for money.
Quality control?
● 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;
Quality assurance?
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
Quality control vs Quality assurance?
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
A quality circle?
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
2 methods of Benchmarking?
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.
Total quality management (TQM) ?
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
4 Methods of lean production?
● Continuous improvement (kaizen) (Toyota)
● Just-in-time (JIT) (Toyota)
● Kanban (Toyota)
● Andon.(Toyota)
Types of waste to be avoided?
● 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).
How to implement kaizen?
Here an overall understanding of the process needed, just several sentences to remmember.
Here an overall understanding of the process needed:
1. To begin with, draw a diagram of value stream (order received->cutting->painting->packaging->dispatch)
- Choose a process!
- 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!
- Discard all waste (explained on another card)
- Design a improved process
- 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
Planning Tool (from 1.7) that could be used with Kaizen?
Fish-bone
Limitation of kaizen (continuous ..improvement)
● 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)
Stock control methods?
● 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
Purpose of stock control methods vs Just-in-time?
To maintain balance between too high and too low stock levels . (JIT alone does not consider buffer stocks).
Two main benefits of less waste ?
No waste of space in storage facilities
and
greater efficiency - not having money tied up in stock.
Kanban cards vs QR codes?
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.
Disadvantage of Andon?
Minor problems may take attention of more workers than needed
Or ambiguous division of responsibilities (who exactly should react?)
Limitation of cradle-to-cradle (C2C)?
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
Quality revolution?
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
What is meant today by the term quality?
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
Quality control vs quality assurance?
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
Limitation of benchmarking?
● What is good for one business may be not relevant for another
● Information about competitors may be too old, poor quality etc.
JIC?
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)
Limitation of Lean production and TQM?
● Law level of commitment
● Not appropriate culture or management style (e.g. lack of trust if autocratic style)
● Costs of reorganization and trainings
Lean production, TQM and global standards?
There are international standards ensuring quality, such as:
ISO 9000 (family of standards, including such as ISO 90001)
Benefits of internationals standards?
● easier to gain trust in other states and export
● better profit margins
● better marketing in general
Benefits of JIT
- Efficiency use of the working capital
- Improved cash-flow
Limitation of JIT plus 1 example
- There may be demand and no stock to sell
- 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.
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?
JIT
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?
JIT
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?
Benchmarking
TQM vs keizen?
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
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?
Andon