lean production- operations Flashcards
what is lean production
lean production is an approach to managment that focuses on minimise / cutting out waste in the production process, while ensuring quality
- which is any process that does not add value to a priduct
increasing productivity decreasing costs
types of waste
- finished goods sat in the warehouse
- overproduction- making more than needed
- transport- moving resources around unnecisarily
- stocks- having an excessive buffrt
- skilled workers not working
- raw materials, sat in warehouse not beign used
- material that is damaged and cant be used - defects- doesnt reach required standard
- excess of raw materials
what is just in time production
just in time production aims to reduce waste - when finished goods/ raw materials are not being added value to, this is minimised when orders are only made when there is demand for them
raw materials/ components made into products only when there is demand for them
pull system customers determine whats produced
what is requaired to ensure a succesful JIT production
- good relationship with high quality suppliers, must have sufficient communication with suppliers to be able to ensure components are delivered when neccisary, may require setting up electronic systems such as EPOS to connect sales to suppliers
- workers / managers need to be appropriately trained and know how the JIT system works - be able to incorporate it
- beneficial if suppliers are close in proximity and flexible for EPOS to be succesful
advantages of JIT
- ensures no waste- no working capital is tied up in stock/ finished goods- more working capital improving liquidity
- saves storacge space, rent and insurance costs- holding lower stock
- less liklehood of stock perishing and going obsolete
- ensure have correct stock neccisary
- reduces costs for business
- little to no mistakes are made as there is a mindset of getting it right the first time- increased efficiency
disadvantages of JIT
- rely heavily on supplier, if deliverys are not met on time can lead to customer dissatisfied
- not alot of room for mistakes as dont have excess rae materials therefore if mistake is made could lead to delays
- unexpected orders cant be met as theres no spare finished product
- EPOS can be expensive
what is kazien production
kazien is based on implimenting small incremental changes to a business to improve quality and efficiency
instead of large capital investments.
continous improvment
less likely for rmployees to resist as not making huge changes, easier to impliment
what is the process of kazian production
employees focus on how and look for ways they can improve their work/ performance and thinking of ways to help the business
should take ownership of their work- help reinforce team working and increase motivation
workforce should be highly motivated, trained and efficient and committed to the business
should be effective communication systems allowing employees to…
communicate suggestions to superiors and other relevant employees
business can impliment changes in the short term to improve productivity and efficiency minimising the need to spend on large capital investment
although… doesnt ignore the need for new tech/ large scale capital investment but focuses on the idea that its not the only method of achieving increasing competitivness
how is kazian implimented
use focus groups with a member of core departments which come together to discuss wasy in which businesses can improve their work, that can be made at minimal cost, increase quality and productivity
advnategs of kazien
- avoids large costs of capital investment but allows competitive advnatages through small chnages at minimla cost
- workforce motivated as they feel as if they have a objective to work towards and better themselves
- high morale as all working to achieve same goal
- increases quality and productivity
- reduced absenteeism and labour turnover
disadvnatages of kazien
- slow process no immediate benefits so may fall behind in the short term
- some may find that constant change is stressful and high pressure to constantly improve- resistance
- costs of contriniously training and changeing business ethic/ enviro, time consuming
- might lead to businesses overlooking major tech advancments which are neccisary in some cases
-relies heavilty on leadership commitment if management arent supporting this approach employees may not fully engage in the kazien approach
what is cell production
cell production is when the production process is split up into stages where employees focus on their stage
adantages of cell production
- increased productivity
- increased quality as specialise in this cell
- increased motivation - team work, responsible for production of their cell
- good communication
disadvantages of cell production
- may increase costs as more capital machinery could be required
- may be quicker on a production line, more intensive
- small scale production may be better off with production line as this increases ineffiencecies as they may not produce on a large enpugh scale
- high training costs initially
- if one cell produces quicker than another can lead to inefficencies, for example if onecell underperforms can disrupt whole production line
- need to be multi skilled, requires continous training high costs
- requires more space, higher rent
- may cause relationships to become damaged if disagree- decreased motivation and productivity
what is time based managment
seeks to reduce time, considered a waste, in production process
speed adds value
- speed of development, delivery, production are important
- may use systems to reduce time in all aspects of production to delivery e.g. tech, CAD, CAM, critical path analysis, JIT, similtanous engineering
what are the requirments for time based managment
flexoble production methods able to chnage quickly to different production volumes
- trained employees multi skilled, good communication between workers and managers reduce any ineffienciencies that could arise due to miscommunication
advantages of time based management
able to quickly repond to chnaging conusmer wants and trends
reducing waste increasing effieciency and productivity
reducing costs and increasing profit margins
improved customer satusfaction, quciker delivery
what is simitaneous engineering
helps with project managment , developing and launching new peoducts quicker
emphasis on carrying out production processes at same time/ near as possible e.g. designing, producing, marketing
reduce lead times
reduce time takes to reach market as product life cycles becoming shorter dont want to spend long time in development as trends change quickly
… must have effective communication between departments avoid wasting time and causing issues due to miscommunication
regular meetings
all involved in product development
work together completting activities in conjunction
advantages of SE
- new products bought to market quick, one of the first do do so… able to charge premium price increasing profit margin
comp advanage as can establish brand loyalty before other businesses can
improved staff commitment
high quality
