Lean production Flashcards
Lean production
Lean production aims to remove all these elements of waste from the production process and as a result increase productivity and reduce costs.
JIT
tries to ensure that parts, raw materials and components are received and products are made only when there is demand for the parts and demand for the products. E.g. of JIT system is Kanban involves the use of order cards to ensure regular and timely supply of components.
Benefits of JIT
- Less costs involved with holding stock
- Less working capital required
- Less obsolete or ruined stock
- Avoids having unsold stock
Difficulties of JIT
- Little room for error
- Very reliant on suppliers
- Unexpected orders have to be met
- Any delays in deliveries due to unforeseen circumstances can cause halt to production.
- High initial set up cost
Kaizen
Kaizen is a system that focuses on small, but frequent, improvements in every aspect of the production process.
All members of workforce are involved.
Main working element of kaizen is the use of kaizen groups. These are groups of workers who have common stake in part of the production process.
Improvements can take place at any level of the hierarchy.
Requires a highly motivated and committed workforce.
Effective communication systems are needed.
Benefits of kaizen
- Improved labour relations
- Improved quality
- Increased productivity
- Increased motivation
- Less large scale investment
- Reduction in waste
- Increases competitiveness
drawback of kaizen
- Will only work if you have a motivated and committed workforce.
Cell production
Cell production is a form of production whereby the production line is split into a series of self-contained cells. Each cell takes responsibility for the production of complete units of output.
The members of the cell work as a team to achieve goals and ensure quality and standards are met.
Increases quality, teamwork and motivation.
Depends upon how well staff are trained.
Benefits of cell production
- Closeness of cell members should improve communication, avoiding confusion arising from misunderstood or non-received messages.
- Workers become multi-skilled and more adaptable to future needs of a business
- Greater worker motivation, arising from variety of work and more responsibility
- Quality improvements as each cell has ownership for it’s quality area.
Downside of cell production
- Company culture has to encourage trust and participation, or workers can feel that they are being constantly pushed for more with less respite
- Company may have to invest in new materials handling and order systems suitable for cell production
- Cell production may not allow firm to use its machinery as intensively as in traditional flow production.
Time-based management
A technique that recognises the importance and cost of time. Seeks to reduce time wasted In production process and hence reduce the time it takes to produce a good or a service as well as reducing lead time. Requires flexibility in all resources including machinery and staff. (multi-skilled staff)
Benefits of effective time-management
- Quicker response time to meet changing demand within market and customer needs.
- Faster new product development
- Reduction in waste and therefore greater efficiency
