5.3 Lean production and quality management Flashcards
Lean production
cutting all types of waste in the production process with the aim of greater efficiency
Types of waste in lean production
- Time
- Transportation
- Products
- Space
- Stock
- Energy
- Talents
Methods of lean production
- Just in time
- Just in case
- Kaizen
Just in time
Stock control meethod that avoids holding stock by getting supplies only when necessary and producing only when ordered
When to use just in time
effective for businesses with predictable demand, reliable suppliers, and the ability to respond quickly to changes with fast-moving inventory.
Just in time benefits
- reduced inventory costs
- less waste
- improved cash flow
- enhanced flexibility in responding to customer demand.
Just in case
holding reserves of both raw materials and finished products in case of a sudden increase in demand
When to use just in case
best for businesses with unpredictable demand, supply chain uncertainties, or high-risk industries where stockouts could be costly, like healthcare or seasonal retail
Benefits of just in case
- preparedness for sudden demand spikes
- reduced risk of stockouts
- increased reliability in supply
- the ability to maintain production during supply chain disruptions
Continuous improvement (Kaisen)
“continuous improvement,” which involves all employees continuously working together to improve processes, reduce waste, and increase efficiency
When to use kaisen
should be used continuously in any organization that values incremental improvements, employee involvement, and reducing waste, making it suitable for both manufacturing and service industries
Benefits of kaisen
- continuous process improvement
- enhanced employee engagement
- reduced waste
- increased efficiency
- culture of ongoing innovation and problem-solving
Cradle to cradle design
a sustainable design philosophy where products are created with the intention of being reused or recycled, minimizing waste and reducing environmental impact
Quality
suggests that a product is:
1. reliable (not going to break)
2. safe (not dangerous)
3. durable (will last)
4. innovative (leading in function and design)
5. value for money (you get what you pay for)
Quality control
maintaining standards to ensure that products and services meet customer expectations and reduce defects or errors, commonly done at the end of the production process
Quality assurance
focuses on ensuring quality at every stage of the production process, aiming to prevent defects by integrating quality into the design and workflow, rather than just detecting defects at the end
Methods of managing quality
- quality circle
- benchmaking
- total quality management
Quality circle
a group of formal employees who meet regularly to discuss and suggest ways of improving quality in their organization
Benchmaking
a tool for businesses to compare themselves to their competitors in order to identify how they can improve their own operations and practices
Total quality management
comprehensive approach to long-term success through customer satisfaction, where all members of an organization participate in improving processes, products, and services
Impact of lean production and total quality management on an organization
- creates closer working relationships with all stakeholders
- motivates workforce
- reduces costs (long-term)
- improves the design and production quality of products
- enhances the reputation of the company
Disadvantages of lean production and total quality management
- costly (short-term)
- staff may need significant training
- takes time to change a corporate culture
- creates stress on formal relationships in the business
- difficult to maintain over a long period of time
Importance of meeting national and international quality standards
- enables exports
- gives a competitive edge
- enhances the image and reputation of the business
- saves costs of withdrawing products
- acts as an insurance
- leads to higher profit margins
