chapter 12 - efficiency and competitiveness using lean production Flashcards
batch production
products are made a specified groups and can go through a series of steps to make the final product
cell production
bringing together machines or people involved in a step of production and grouping them close together to one another, distinct from other groups
flow production
production of substantial amounts of standardised products in a constant flow including on assembly lines
job production
a firm works on a single job and completes it before proceeding to the next similar or different job
just in time
involves scheduling the delivery of inputs in a precisely coordinated way that minimises the quantity of stock required
kaizen
encourage constant improvement
lead times
the time delay between a decision being made and the decision veing carried out
lean production
an approach to management that focuses on cutting out waste whilst ensuring quality
quality
the ability of a product or service to meet customer expectations
quality assurance
the checking of a product or service at each stage of its production, relies upon self checking
quality circles
informal groups of workers, volunteer to meet regularly to discuss how to improve quality . Their recommendations are fed back to management, increasing employee motivation as well as quality
quality control
the checking of a good or service before it is delivered to the customer
total quality management
sees quality as the responsibility of all employees; each employee is a link in the chain and treats the next link as if they were an external customer
5 factors of quality for products
- aesthetics
- features
- augmented aspects e.g. warranty
- performance
- intangible aspects
6 factors of quality for services
- friendliness of staff
- speed of service
- efficiency of service
- staff knowledge
- cleanliness of facilities
- appearance of environment
5 ways forms can manage quality
- training and motivating employees
- understanding customers expectations
- using technology
- working closely with supervisors
- quality systems
advantages of quality control (5)
- quality can be monitored
- stops faulty products reaching customers
- inspector takes responsibility
- common problems can be identified
- often a robust system
disadvantages of quality control (4)
- takes responsibility away from operators
- requires specialists
- problems only identified at the end of process
- waste levels may be high
advantages of quality assurance (5)
- spots any faults early
- motivates workers who are responsible for ensuring quality standards
- aims to achieve an onmbjective of zero defects
- enhances the reputation of the business as less chance of faulty goods reaching end customer
- ensures clear systems are in place
disadvantages of quality assurance (4)
- requires staff training and high levels of staff commitment
- can slow down production process
- May demotivate workers who feel under pressure
- opportunity cost of managers time
benefits of TQM (5)
- achieve operational objectives
- gain a competitive advantage
- reduce unit costs
- enhances reputation
- motivated workforce
problems of TQM (4)
- reluctance of employees
- requires finance
- reliant on good relationships
- Once achieved must be monitored to ensure standards are being maintained
6 competitive advantages of TQM
- achieve a lower unit cost
- less waste
- positive image
- USP
- pricing decisions
- motivated workforce
5 aims of lean production
- minimising stock levels
- doing the simple things well
- doing things better
- involving employees in the continuous process of improvement
- avoiding waste
types of waste (tim woods)
Transport, Inventory, Motion, Waiting, Over production, Over processing, Defects and Skills
5 benefits of JIT
- less costs in holding inventory
- less working capital required
- less obsolete or ruined inventory
- lower associated costs
- avoids having unsold stock
6 difficulties of JIT
- little room for error
- very reliant on suppliers
- unexpected orders harder to meet
- any delays in deliveries due to unforseen circumstances can cause production to come to a halt
- high initial set up costs
- compex systhace to be pit in place and understood
7 competitive advantages of lean production
- minimised stick holding
- improved cash flow
- JIT systems
- strong supply chain relations
- Good customer relations
- getting it right first time and limited waste = zero defects and lower cost
- motivated workers
6 competitive disadvantages of lean production
- low stock holding
- often complex, specialised stock systems needed
- sudden changes in demand may be difficult to respond to
- there is no room for storage
- equipment failure stops production
- very low margin for error
