Ch 26 Lean production and quality management (A Level) Flashcards
Define lean production
producing goods and servies with the minimum of waste resources while maintaining high quality
7 main sources of waste
excessive transportation of components and products
excessive stock holding
too much movement by working people
waiting time - delays in the production process
overproduction
overprocessing - making goods that are too complex
defects
Main methods of lean production (5)
Simultaneous engineering
Cell production
Flexible specialisms
JIT
Kaizen
Define simultaneous engineering
product development is organized so that different stages are done at the same time instead of in a sequence
Define cell production
splitting flow production into self-contained groups that are responsible for whole work units
Implications of cell production (3)
Job rotation within cell
Teamwork of the complete unit of work
Job enrichment (Herzberg) => increased motivation and productivity
How can flexible specialisms be categorised? (3)
flexible employment contracts
flexible and adaptable machinery
flexible and multi-skilled workers
=> quicker response to consumer demand changes, wider ranges of products offered to customers, reduced stock holdings as they can be made to order and higher productivity
Define JIT
this inventory Control method aims to avoid holding inventories by requiring suppliers to arrive just as they are needed in production and completed products are produced to order
pull system of production, so actual orders provide a signal for when a product should be manufactured. correct quantity at correct time
Advantages of JIT (5)
Lower stock holding means a reduction in storage space which saves rent and insurance costs
As stock is only obtained when it is needed, less working capital is tied up in stock
There is less likelihood of stock perishing, becoming obsolete or out of date
Avoids the build-up of unsold finished product that can occur with sudden changes in demand
Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time
Disadvantages of JIT (3)
There is little room for mistakes as minimal stock is kept for re-working faulty product
Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed
There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders – however, JIT is a very responsive method of production
Define Kaizen
Japanese term meaning continuous improvement. An approach of constantly introducing small incremental changes in a business in order to improve quality and/or efficiency.
Conditions for Kaizen to operate (4)
management culture must be directed towards involving staff - senior managers must accept that work experience matter as much as theoretical knowledge
team working - collective ideas come together to come up with solutions for problems
empowerment - power to take decisions will allow speedier introduction of new ideas and motivate staff
all staff are involved
Advantages of kaizen (5)
Improvements are based on many, small changes rather than the radical changes that might arise from Research and Development => easier to implement and less risks
As the ideas come from the workers themselves, they are less likely to be radically different, and therefore easier to implement
Small improvements are less likely to require major capital investment than major process changes
The ideas come from the talents of the existing workforce, as opposed to using R&D, consultants or equipment – any of which could be very expensive
It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby improving worker motivation
Disadvantages of kaizen (3)
Some changes cannot be introduced gradually and may need radical and expensive solutions. e.g. kodak had to invest in manufacture of digital cameras rather than paper film based
Real resistance frim senior managers => inner conflit
In the short term, tangible costs to the business such as staff training, meetings
Advantages of lean production (7)
waste of time and resources substantially reduced or eliminated
unit cost I will do leading to higher profits
working area is less crowded and easier to operate in
There’s less risk of damage to stocks and equipment
New products launched much more quickly
When is lean production not suitable? (5)
businesses have difficulty forecasting demand
production processes are very expensive to start up
device for making extensive redundancies, job losses - an aspect which help to increase efficiency
cost of new technology and retraining
business depend on customer service as their unique selling preposition. In these situations, give more customers more choice of products => less lean since it calls for more flexibility
Define quality product
a good or service that meets customers’ expectations and is therefore fit for purpose
Define quality standards
the expectations of customers expressed in terms of the minimum acceptable production/service standards
List the 3 main ways companies control quality
Prevention
Inspection
Correction and improvement
Define quality control
this is based on inspection of the product or a sample of products
Advantages of quality control (3)
With quality control, inspection is intended to prevent faulty products reaching the customer.
This approach means having specially trained inspectors, rather than every individual being responsible for his or her own work.
It is thought that inspectors may be better placed to find widespread problems across an organisation.
Disadvantages of quality control (4)
Individuals are not necessarily encouraged to take responsibility for the quality of their own work.
Rejected product is expensive for a firm as it has incurred the full costs of production but cannot be sold as the manufacturer does not want its name associated with substandard product.
Job of inspection can be tedious and demotivating
If checking only takes place at specific points in the process then faulty products may pass through several productions process already
Define quality assurance
a system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction
What are the main stages in quality assurance? (5)
Product design - will the product meet the expectations of consumers?
Quality of inputs - suppliers have to accept and keep strict quality standards
Production quality - assured by TQM
Delivery systems - customers need goods and services delivered with punctuality => reliability of system must be monitored
Customer service including after-sales service
Advantages of quality assurance (4)
Costs are reduced because there is less wastage and re-working of faulty products as the product is checked at every stage
It can help improve worker motivation as workers have more ownership and recognition for their work (see Herzberg)
It can help break down ‘us and them’ barriers between workers and managers as it eliminates the feeling of being checked up on
With all staff responsible for quality, this can help the firm gain marketing advantages arising from its consistent level of quality
Differences between quality control and quality assurance
Focus on:
Quality control: aims to identify (and correct) defects in the finished product. A reactive process
Quality assurance: aims to prevent defects with a focus on the process used to make the product. A proactive process
Responsibility
Quality control: Quality control is usually theresponsibility of a specific team that tests the product for defects.
Quality assurance: Everyone on the team involved in developing the product is responsible for quality assurance.
Tool/orientation
Quality control: corrective tool. product orientated
Quality assurance: managerial tool. process orientated
Define total quality management
an approach to quality that aims to involve all employees in the quality-improvement process
Define internal customers
People within the organisation who depend upon the quality of work being done by others.
Define zero defects
The aim of achieving perfect products every time.
Advantages of TQM (5)
1) Emphasizing the needs of the market: QM helps in highlighting the needs of the market. Its application is universal and helps the organization to identify and meet the needs the market in a better way.
2) Assures better quality performance in every sphere of activity: TQM stresses on bringing attitudinal changes and improvements in the performance of employees by promoting proper work culture and effective team work
3) Helps in checking non-productive activities and waste: quality improvement teams are constituted to reduce waste and inefficiency of every king by introducing systematic approach.
4) Helpful in meeting the competition: TQM techniques are greatly helpful in understanding the competition and also developing an effective combating strategy.
5) It helps in developing an adequate system of communication: QM techniques bind together members of various related sections, departments and levels of management for effective communication and interaction.
Disadvantages of TQM (3)
1) Production Disruption: implementing a Total Quality Management system in a company requires extensive training of employees and these requires them to take some time of their day to day work duties OR stopping production to trace and correct quality problmes
2) Employee Resistance: Total Quality Management requires change in mindset, attitude and methods for performing their jobs. When management does not effectively communicate the team approach of Total Quality Management, workers may become fearful, which leads to employee resistance. When workers resist the program, it can lower employee morale and productivity for the business.
3) Quality is Expensive: Implementation often comes with additional training costs, team-development costs, equipment costs, consultant fees, material costs,
Define benchmarking
Involves management identifying the best firms in the industry and then comparing the performance standards of these businesses with those of their own business
List the 7 stages of the benchmarking process
Identify the aspects of the business to be benchmarked
Measure performance in these areas
Identify the firms in the industry that are considered to be the best
Use comparative data from the best firms to establish the main weaknesses in the business
Set standards for improvement
Change processes to achieve the standards set
Re-measurement
Advantages of benchmarking (4)
faster and cheaper way of solving problems than firms attempting to solve production/quality problems w/o external comparisons
areas of significance for customers are identified and action can be directed to improving these
assist firm to increase international competitiveness
comparisons between firms of different industries encourage useful crossover of ideas
Disadvantages of benchmarking (3)
process depends on obtaining up to date info from other firms in the industry which can be difficult
copying ideas and practices of other firms discourage original ideas, no USP
costs of comparison exercise may not be recovered by improvements obtained from benchmarking
