Chapter 24 Lean production and quality management

Question 1

What is Lean production?

Answer 1

Lean production means producing goods and services with the minimum of waste resources while maintaining high quality.

Question 2

what are the main sources of waste in industries?

Answer 2

1 Excessive transportation of components and products
2 Excessive stock holding
3 Too much movement by working people, e.g. to get supplies of components
4 Waiting – delays in the production process
5 Over production – producing ahead of demand
6 Over-processing – making goods that are too complex as they could have been designed more simply
7 Defects – products that do not come up to quality standards

Question 3

What is Simultaneous engineering?

Answer 3

Simultaneous engineering means product development is organised so that different stages are done at the same time instead of in sequence

Question 4

What is Cell production?

Answer 4

Cell production means splitting flow production into self-contained groups that are responsible for whole work units.

Question 5

What is Kaizen?

Answer 5

Kaizen is a Japanese term meaning continuous improvement.

Question 6

what are Conditions necessary for Kaizen to operate?

Answer 6

1 Management culture must be directed towards involving staff and giving their views and ideas importance
2 Team working – suggesting and discussing new ideas to improve quality or productivity is best done in groups
3 Empowerment – by giving each Kaizen group the power to take decisions regarding workplace improvements, this will allow speedier introduction of new ideas and motivate staff to come up with even more ideas
4 All staff should be involved.

Question 7

Main advantages of lean production?

Answer 7

1 Waste of time and resources is substantially reduced or eliminated.
2 Unit costs are reduced, leading to higher profits.
3 Working area is less crowded and easier to operate in.
4 There is less risk of damage to stocks and equipment.
5 New products launched more quickly.

Question 8

What is Quality product?

Answer 8

A quality product is a good or service that meets customers’ expectations and is therefore ‘fit for purpose’.

Question 9

What is Quality standards?

Answer 9

Quality standards are expectations of customers expressed in terms of the minimum acceptable production or service standards.

Question 10

The advantages of producing quality products and services are?

Answer 10

1 Easier to create customer loyalty
2 Saves on the costs associated with customer complaints, for example compensation, replacing defective products and loss of consumer goodwill
3 Longer life cycles
4 Less advertising may be necessary as the brand will establish a quality image through the performance of the products
5 A higher price – a price premium – could be charged for such goods and services. Quality can, therefore, be profitable.

Question 11

What is Quality control?

Answer 11

Quality control is based on inspection of the product or a sample of products.

Question 12

What is Quality assurance?

Answer 12

Quality assurance is a system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction.

Question 13

Why is it important for businesses to establish quality-assurance systems?

Answer 13

1 To involve all staff, and this can promote teamwork and a sense of belonging, which aids motivation
2 To set quality standards for all stages of production so that all materials and all production phases are checked before it is too late and the whole product has been completed
3 To reduce costs of final inspection
4 To reduce total quality costs
5 To gain accreditation for quality awards

Question 14

What is Total quality management (TQM)?

Answer 14

TQM is an approach to quality that aims to involve all employees in the quality-improvement process

Question 15

What is Internal customers?

Answer 15

Internal customers are people within the organisation who depend upon the quality of work being done by others.

Question 16

What is zero defects?

Answer 16

Zero defects aims to achieve perfect products every time.

Question 17

What is Benchmarking?

Answer 17

Benchmarking involves management identifying the best firms in the industry and then comparing the performance standards – including quality – of these businesses with those of their own business.

Question 18

what are Quality circles

Answer 18

Quality circles is a Japanese approach to quality. It is based on staff involvement in improving quality, using small groups of employees to discuss quality issues. The overall aim of the group is to investigate quality problems and present solutions to management – or, if a group is fully empowered, to put improvements into effect themselves.

Question 19

Quality circles Main benefits?

Answer 19

1 Improves quality through joint discussion of ideas and solutions.
2 Improves motivation. through participation.
3 Makes full use of the knowledge and experience of the staff.

Question 20

Quality circles Main conditions determining success?

Answer 20

1 Circle members must be committed to improving quality.
2 Training given in holding meetings and problem solving.
3 Full support from management.
4 Team should be empowered to implement the recommendations.

Question 21

The potential costs of quality systems

Answer 21

1 Staff training costs to ensure that standards are understood and the operations needed to check them can be undertaken
2 Equipment costs for checking standards at each stage, e.g. laser measuring machines for accuracy of panel fit on a vehicle
3 Inspection and checking costs

Question 22

The potential benefits of quality systems

Answer 22

1 Good publicity
2 Reputation for quality
3 Allows the brand to be built around a quality image, and branding is an important form of non-price differentiation for businesses
4 May allow a price premium to be charged over similar businesses in that market segment

Question 23

What are the advantages to a business of managing the quality of its products effectively?

Answer 23

1 Achieving consistent quality is often a more effective method of competing – compared to lowering costs and prices – in both domestic and international markets
2 Consistent high quality can lead to such as well-known brand image that higher prices can be justified for this USP
3 It is increasingly vital for businesses to differentiate themselves with a quality brand image