Unit 4. Chapter 24. Lean production and quality management

Question 1

Def. Lean production

Answer 1

Producing goods and services with the minimum of waste resources while maintaining high quality.

Question 2

Methods to reduce waste (2)

Answer 2

• Simultaneous engineering

* Cell production

Question 3

Def. Simultaneous engineering +benefit

Answer 3

Product development is organised so that different stages are done at the same time instead of in sequence.
Benefit: New products are produced much quicker to keep up with fast paced markets.

Question 4

Def. Cell production

Answer 4

Splitting flow production into self-contained groups that are responsible for whole work units.

Question 5

Benefits of cell production (4)

Answer 5

• Improvement in worker commitment and motivation because there is team work
• Job rotation
• Increased productivity
• TQM for each cell

Question 6

What are the three main areas of flexible working? (3)

Answer 6

• Flexible employment contracts for non-core employees to be called on busier periods
• Flexible machinery
• Flexible and multi skilled workers

Question 7

JIT

Answer 7

mentioned in AS chapter 22

Question 8

Def. Kaizen

Answer 8

Japanese term meaning continuous improvement. The philosophy behind this idea is that all workers have something to contribute to improving the way their business operates and the products made.

Question 9

What are the conditions for Kaizen to be operated? (4)

Answer 9

• Management culture must be Theory Y, where employees are viewed as being able to positively contribute
• Team working - idea contribution is best done in groups
• Empowerment of employees (Herzberg)
• All staff should be involved

Question 10

Limitations to kaizen (3)

Answer 10

• Some ideas cannot be quickly and cheaply implemented
• Management resistance to empower employees
• May require staff training

Question 11

Benefits of lean production (4)

Answer 11

• Decrease in wasted time and resources
• Lower unit costs
• Less crowded and easily operated working area
• New products launched quicker

Question 12

When would lean production not be suitable for the business? (3)

Answer 12

• Businesses cannot have accurate forecasting of demand therefore cannot operate with just zero stock
• Business depend on customer service as their USP. Less lean approach gives consumers more choice of finished goods and more suitable delivery times.
• The costs of new technology is too high.

Question 13

Def. Quality product

Answer 13

A good or service that meets customers’ expectations for its given price.

Question 14

Def. Quality standards

Answer 14

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

Question 15

Benefits of producing quality products and services? (5)

Answer 15

• Consumer loyalty
• Less costs associated with consumer complaints
• Longer product life cycles
• Less advertising necessary
• Ability to charge higher prices

Question 16

Def. Quality control

Answer 16

Based on inspection of the finished product or a sample of product as it is being provided to the consumer.

Question 17

Def. Quality assurance

Answer 17

A system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction.

Question 18

What are the quality control techniques? (3)

Answer 18

• Inspection
• Testing
• Random sampling

Question 19

Limitations to quality inspection? (5)

Answer 19

• It is expensive, therefore sampling process would have to be used which does not ensure quality for all of the products.
• The process is looking for problems -> negative -> may cause employee resentments
• The work is tedious and repetitive -> demotivating
• Takes a lot of time to find cause of a faulty product
• Employees don’t see quality as their responsibility

Question 20

What are the key differences between quality assurance and quality control (4)

Answer 20

Quality assurance:
• Puts more emphasis on preventing faulty products
• Stresses the workers to ‘get it right the first time’
• Establishes quality standards for each stage of production
• Checks raw materials once delivered

Question 21

Benefits of quality assurance (4)

Answer 21

• Makes everyone responsible for quality -> job enrichment
• Involves all staff -> motivation
• Easier to ‘trace back’ where the problem with quality occurs
• Reduces need for expensive final inspection and correction

Question 22

Def. TQM

Answer 22

Total Quality Management: An approach to quality that aims to involve all employees in the quality improvement process.

Question 23

Notes about TQM (4)

Answer 23

• Based on principal that everyone has responsibility to better the overall quality of the finished good
• To adopt the concept, every employee should think of another employee as their internal costumer
• Links to Herzberg’s job enrichment as there’s no need for quality control department and because it is everyone’s job
• TQM aims to cut costs and achieve ‘zero defects’

Question 24

Def. Internal costumer

Answer 24

People within the organisation who depend upon the quality of work being done by others

Question 25

Def. Zero defects

Answer 25

The aim of achieving perfect products every time

Question 26

Potential benefits of quality systems (6)

Answer 26

• Consumer satisfaction and repeat custom
• Good publicity
• Encourages retails to restock
• Easier to establish new products
• Allows brand to be built around quality image
• Allows price premium if quality is the USP

Question 27

Potential limitations of quality systems (7)

Answer 27

• Market research is expensive and time consuming
• Staff training costs to have TQM mindset
• Faulty raw materials costs
• Equipment costs
• Inspection and checking costs
• Time costs for stopping the production process to track the reason for faulty goods
• Costs for correction of a faulty good

Question 28

Def. Benchmarking

Answer 28

It 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 29

Stages of benchmarking (7)

Answer 29

1. Identify the aspects of business to be benchmarked
2. Measure performance in these areas
3. Identify the firms in the industry that are considered to be the best
4. Use comparative data to establish the main weakness in the business
5. Set standards for improvement
6. Change processes to achieve the standards set
7. Re-measurement

Question 30

Benefits of benchmarking (3)

Answer 30

• Faster and cheaper way to identify problems and solve them
• The areas of greatest significance can be identified to work on
• Involving workforce leads to better ideas and motivated staff

Question 31

Limitations of benchmarking (3)

Answer 31

• It requires obtaining up to date information from other firms
• Copying the ideas and practices discourages employee initiative and originality
• Costs of comparison activities may not be covered by achieving the bench mark

Question 32

Quality circles(1) +conditions(4) +benefits

Answer 32

• Small groups of employees discuss quality issues. This is essential for improving quality.
Conditions:
• Circle members must be committed
• Training for holding meetings and problem solving must be provided
• Full support from management
• Team should be empowered to implement recommendations
Benefits:
• Improves quality
• Improves motivation
• Makes full use of employees knowledge and experience (no opportunity cost)