5.3 Lean production & quality management (HL) Flashcards
Lean Production
-It is an organisational culture about streamlining production processes to increase efficiency and reduce waste.
Features of Lean Production
- Less waste
- Greater efficiency
How can efficiency be measured
Sales per person
Output per worker
Output per machine hour
Average costs per unit of output
Kaizen
-Japanese process and philosophy of lean production that involves the process of making continuous small, incremental improvements to various production processes to achieve greater efficiency.
Just-in-time (JIT)
is a lean method of stock control whereby materials and components are scheduled to arrive precisely when they are needed in the production process.
Just-in-case (JIC)
-A stock control system that requires businesses to have large quantities of stock if it is needed for an unexpected order or in case there is a problem with the supply chain (such as a late delivery of stock).
Advantages of JIT
Buffer stocks are not required, so this reduces the costs of stock management and waste.
It avoids the opportunity costs of stockpiling, such as the costs of storage, insurance, maintenance or security, damaged stocks, and obsolete (out of date) inventory.
JIT fosters lean production as workers need to be more careful and ensure things are done right, first time round as there are no spare stocks.
Disadvantages of JIT
As orders are placed in smaller quantities at regular intervals, administrative and implementation costs of JIT can be relatively high.
Similarly, JIT stock control does not enable firms to enjoy bulk buying economies of scale as raw materials and/or parts are only ordered as and when they are needed for production.
There is the risk of running out of stock if demand is higher than expected.
Cradle to Cradle design and manufacturing
refers to a sustainable, waste-free production model in which all material inputs can be recycled or reused, or are consumable or compostable.
Why is C2C good?
helps to minimise the negative impacts of production on the natural environment
Quality
Means that a product is fit for purpose; the good or service meets or exceeds the needs of its customers
Quality Control
Refers to the most traditional form of quality management in which a supervisor or inspector periodically checks and examines output for possible defects, usually at the end of the production process.
Advantages of Quality Control
Quality control prevents substandard (poor quality) output from reaching the end-user. This helps to improve customer satisfaction.
Quality controllers are experts, so they should help to ensure fewer mistakes are made.
It is also cheaper than quality assurance, as fewer workers need to be trained to check for quality.
Disadvantages of quality control
QC is a reactive rather than proactive method of quality management, so it does not prevent mistakes
If products are only checked at the end of the production process, this can result in a rather large volume of substandard products
Quality control also has an accepted reject rate (given that it is not possible to check every unit of output), unlike in quality assurance, where the aim is to achieve zero defects.
Quality Assurance
-Lean approach to quality management as it involves all employees in the quality process. QA focuses on empowering all staff to check their work throughout the production process, rather than relying on quality controllers.
Advantages of quality assurance
It can improve the level of motivation in the workplace as employees are given the responsibility to produce and maintain high-quality output.
Employee participation can also help to generate new ideas regarding the quality process.
It reduces the costs of wastage and reworking of substandard products.
Disadvantages of quality assurance
It is expensive compared to quality control, as all workers are involved and need to be trained
The philosophy only works if each staff member is committed to quality assurance.
For some organisations, it is not feasible or suitable to ensure every product is checked or inspected.
Quality Circles
-Are small groups of employees who meet regularly to assess quality issues and make recommendations to improve quality standards.
Advantages of quality circles
They promote teamwork and boost team cohesiveness. This can therefore help to improve employee morale, as staff feel more valued.
Almost any organisation, in any industry, can use quality circles to improve quality standards.
Disadvantages of quality circles
Quality circles are not necessarily cost-effective, as employees have to be suitably qualified and trained in the process of identifying problems.
For quality circles to work well, staff must be fully supported by senior management. If their recommendations are rejected or not adequately funded, members of the quality circle will lose any motivation to continue.
Some staff members may be unable or uncomfortable taking on such a level of responsibility.
Benchmarking
-Is the routine process of an organisation comparing its products, processes (operations) and performance to that of its competitors or its historical standards.
Advantages of Benchmarking
Almost any aspect of an organisation’s operations can be benchmarked, so long as it is measurable
Benchmarking encourages organisations to continually learn from their competitors, in an attempt to improve their processes, performance and overall quality.
It enables an organisation to determine its strengths and weaknesses in comparison to its competitors.
Disadvantages of benchmarking
Benchmarking only enables a business to identify the areas that need improving. It does not determine how.
Benchmarking is not always done in a meaningful or objective way, such as perceptions of customer feedback.
It can be expensive to benchmark best practice in an industry, as time and money are needed to ensure adequate comparisons are made.
Total Quality Management (TQM)
-It is a philosophy that involves all workers having responsibility for maintaining quality standards throughout the production process
-TQM aims to achieve zero defects by preventing mistakes from being made in the first place.
