Lean Production and Quality Management Flashcards
Define lean production.
A set of strategies that minimize waste while maintaining efficiency.
Define JIT production.
When inputs are ordered and delivered immediately before their use, so that stock (inventory) can be minimised.
Define continuous improvement (Kaizen).
Small, ongoing changes to improve processes.
Benefits and limitations of JIT production.
Benefits: improved cash flow and reduces costs; improved operations; increased capacity.
Limitations: reduced economies of scale; high risk; reduced resilience (unable to adapt to changes in the internal and external environment).
Benefits and limitations of continuous improvement (kaizen).
Diversity and improvement of ideas; employee motivation.
Limitations: lower productivity; higher labour costs.
Define total quality management (TQM).
Quality management strategy where every employee is jointly responsible for maintaining the overall quality of the final product.
Define benchmarking.
The processes of a business comparing itself with industry leaders of certain criteria to learn from other’s techniques.
Define quality circles.
A group of employees who meet regularly to discuss potential improvements to product quality.
Benefits and limitations of TQM.
Benefits: motivation; improved quality; reduced costs.
Benefits and limitations of benchmarking.
Benefits: improved quality; understand competitors and consumers; customers satisfaction/increased revenues.
Limitations: lack of transferability (no guarantee the process will be successful in a new context); lack of information; selecting the right benchmark.
Opportunities for benchmarking (potential improvement).
HR - Lower labour turnover.
Finance - Improved cash flow.
Marketing - Higher customer loyalty.
Operations - Improved product quality.
Benefits and limitations of quality circles.
Benefits: Motivation; improved quality; recued costs.
Limitations: reduced productivity; training costs; not suited to every organization.
Define cradle-to-cradle design and manufacturing.
Model of designing and creating products in a way that minimises waste and negative effects on the environment.
Discuss the relation of cradle-to-cradle strategies with costs and revenues.
- Increase costs of production in the short term.
- May have reduced costs in the long term (if they do not have to buy as many resources to produce their products).
- These strategies make businesses more responsible for the full costs of the waste they produce.
- USP (ethical products) may increase revenues.
