lean management strategies Flashcards
lean management
focuses on minimising waste while simultaneously maximising productivity and value for the end customer.
The four principles of lean management
- pull
- takt
- zero defects
- one piece flow
PUll
is where customer demand dictates the rate at which goods or services are produced. Rather than a business producing as much as possible and trying to push these products to the market, the pull concept is where the business only produces the amount that the market demands.
pull example
Hearing aids
one piece flow
The operations process focuses on one good or service at a time. If multiple tasks are being performed on a product at a time, it can cause interruptions. Instead, one piece being focused on at a time during production reduces waiting times as the product has a continuous flow through production.
one piece flow example
subway
takt
refers to the speed at which a business needs to produce products to meet customer demand. This allows a business to have a continuous flow and adapt quickly to any rises or falls in demand. It is better to have a continuous flow of production rather than having various starts and stops.
takt example
subway
zero defects
is about identifying errors or defects as soon as they occur so they can be rectified immediately. Defects cause waste and a lean business will aim to have zero defects. Although errors will always occur in operations, a lean business will aim to not pass on defects to the next area of production.
zero defects example
subway
4 principles disadvantages
- employees may be reluctant
- if suppliers do not deliver materials on time, the business may be unable to optimise the flow of production and meet customer demand
- may be overwhelming for employees as there is a continuous goal for the improvement of processes and waste minimisation
- time consuming to train employees
- costly to implement due to training
pull efficiency and effectiveness
efficiency:
reduces overproduction and minimises waste of materials, time and labour
effectiveness;
gain products at the right quality which ensures customer needs and expectation of value are met
one pice flow efficiency and effectiveness
efficiency:
reduces the number of errors in production by only producing one unit at a time
effectiveness:
only maintaines processes which add value to customers, improving their satisfaction
takt efficiency and effectiveness
efficiency
optimises the flow of materials between stages and production, reducing time being wasted
effectiveness
imrproves the flow of processes and optimises the production of goods, improving customer satisfaction
zero defect efficiency and effectiveness
efficiency
employees and the business aim to continuously reduce waste and encouraged to anticipate faults
effectiveness
aiming for continuous improvement may lead to customers recieving products with no defects and of quality, improving their satisfaction