A3 System Control and Management Flashcards
Main concept behind Toyota Production System
Eliminate unnecessary resources (waste) > increased production efficiency & effectiveness
Produce required product at right time, quantity & quality (Just-in-time)
Is Just-in-time production pull/push system
Pull since each stage initiates production by requesting an order from prev. stage in production process
Just-in-time As
Bottlenecks eliminated
Batch sizes reduced
Waiting time of parts reduced
WIP reduced (holding/storage cost reduced)
Setup time reduced
7 wastes
0 defects
0 inventories
0 setup times
0 handling
0 breakdowns
0 lead times
batch size of 1
How is JIT production controlled?
Kanban card/electronic equivalent authorises manufacture of components once subsequent process complete
How does Kanban identify wastes
Build-up of Kanban cards indicates more WIP & location of bottleneck
Quality from customer’s POV
Does product meet needs & expectations
Quantitative - how fast/light/good value
Qualitative - attractive, brand loyalty
Quality from manufacturer’s POV
Is product made to exact specification
Quantitative - tolerances in geometry, surface finish
Qualitative - visual inspection, perceived build quality
QA
quality assurance - iterative system for preventing defects as far as possible
Products should be fit for purpose
Minimise mistakes so products are right 1st time
QC
quality control - system for detecting defects in product/process
Used in QA to detect size & frequency of defects
Kaizen
system of small & continuous improvement in a process
Why is Kaizen more effective than trad suggestion scheme
Why don’t I…
Personal, fast implementation
Low operation cost
No political barriers
Everyone participates, setting own achievable goals
Good teamworking
Six sigma
Statistical analysis tool to improve quality by identifying & removing causes of defects
In manufacturing aim to achieve error rate of 3.4 defects per million opportunities (DPMO)
Six Sigma As
Quantitative aim to activities designed to improve quality, save time & cut costs by improving process performance & reducing variation
Six Sigma Ds
Basic process dressed up in management jargon, no statistical justification for using 6 sigmas. 3.4 DPMO arbitrary & doesn’t necessarily hold for all processes e.g. nuclear reactor rods vs drain cleaning rods
How Taguchi developed trad Goal Post philosophy of achieving quality
More resolution within good (poor, fair, good, best) to account for variation in quality above standard required
Tachuchi’s Loss Methods aim
minimise loss to society due to poor quality
customers lose money replacing products more often
manufacturers lose rep (lose customers)
Quality loss determined by customer dissatisfaction
How does Taguchi suggest a manufacturer can reduce loss?
Design products to eliminate potential for variation during production (simply)
Use statistics to investigate parameters that vary uncontrollably in real life (weather)
Taguchi Loss Function aim
Quantitatively describe loss to society
As quality of part nears its limits, increasing less likely to satisfy customers > more loss
Knock-on effects of loss
Poor quality products, loss of sales
factories close
loss of jobs
loss of income to spend on products
less tax being paid
Why would manufacturer maintain an inventory
JIT techniques not perfect
Economies of scale - bulk buying leads to inventory
Time - maintain supply (processes might work perfectly but not customers/suppliers)
Uncertainties - irregular order patterns, unexpected demand - inventories buffer demand
Problems maintaining inventory
Large amount of WIP & finished stock (handling & storage costs) needed
How does MRP address inventory problems?
materials requirement planning
Use firm orders for products & future requirements based on sales forecasts to calc. what materials ordered & when
Aims of MRP
materials requirement planning
Minimise inventory levels
Ensure timely delivery of materials/products
Aid planning of manufacturing & delivery of materials/products
2 outputs of MRP
materials requirement planning
Recommended Production Schedule
Recommended Purchasing Schedule
MRP As
materials requirement planning improves production planning & forces companies to be more organised in other aspects e.g. marketing, purchasing
MRP Ds
materials requirement planning doesn’t account for plant capacity, how many workers needed, cash needed to buy materials
MRPII
Manufacturing resource planning
Overcomes limitations of MRP by coordinating production resources of manufacturing organisation across factories/sites/countries
How does MRPII work?
Take MPS (master production schedule), complete rough capacity planning, modify MPS & initiate MRP process
What does ERP do?
Enterprise resource planning
Extends ideas of MRPII across whole business incl. finance, human resources in addition to manufacturing
Why is it difficult to implement ERP?
enterprise resource planning
Communication between all parts of a business
Managing fast evolving businesses (e-commerce)
Practicalities of installing hardware & software
Changes to working practices
Training staff in new systems
ERP As
enterprise resource planning
All business systems integrated & work together
Data flows freely throughout
Minimises chance of losing important info
Better view of business, easier to make decisions
Reduces lead times through better process control i.e. data to support MRP & MRPII
Help manages complex bill-of-materials
ERP Ds
enterprise resource planning
Expensive & time consuming to implement
Reduce morale (force workers to adapt to new business practices)
Removes ownership of business areas
Restricts existing process that are perceived to ‘work well already’
Problems sharing complex/sensitive data
Forcing compliance to a standard reduces competitiveness
Lean manufacturing
0 wastes from JIT developed into a broader & wider looking philosophy of lean manufacturing that exists throughout supply chain
Leanness
Combo of eliminating unnecessary resources (0 wastes) & increasing efficiency & effectiveness (Kaizen)
Main areas of manufacturing leanness can be applied to?
Plant
Supplier network
Production development
Relationships with distributors & customers
Tier1 to 2 supplier to an OEM As
original equipment manufacturer
encourages competition
Opportunities to remain as suppliers
opportunities arise from good performance (quality, cost, delivery, engineering capability)
Agile manufacturing
Next step in development from lean manufacturing > take advantage of leanness to be an adaptable, rapidly responding (right product, right time) business
Global manufacturing
Use philosophies of leanness & agile manufacturing to take advantage of globalisation (e.g. production located where cost/expertise exists, take advantage of local knowledge for product development/marketing)
E-manufacturing
Take advantage of modern IT systems (cloud computing etc.) to breakdown geographic barriers to the business
