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Business Management > 5.3 Lean production and quality management > Flashcards

5.3 Lean production and quality management Flashcards

1
Q

Lean production

A

A philosophy or organizational culture about streamlining production process in order to increase efficiency and reduce waste.

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2
Q

Features of lean production

A
  • less waste
  • greater efficiency
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3
Q

Less waste

A

Requires getting things done correctly the first time around, and using fewer resources or using them more effectively to achieve the same output.

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4
Q

Sources of waste

A
  • Waiting times
  • Overproduction
  • Motion
  • Defects
  • Over-processing
  • Transportation
  • Stockpiling
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5
Q

Greater efficiency

A

Using resources more productively in order to generate output, if an organization can produce more goods and/or services by using the same or fewer resources.

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6
Q

Greater efficiency can be achieved by:

A
  • improved level of motivation
  • improved technologies and capital equipment
  • improved provision of training and development for all employees
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7
Q

Methods of lean production

A
  • continuous improvement (kaizen)
  • just-in-time (JIT)
  • kanban
  • andon
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8
Q

Continuous improvement (Kaizen)

A

The process of making continuous small, incremental improvements to various production processes in order to achieve greater efficiency.

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9
Q

Conditions necessary for kaizen to operate

A
  1. Management culture must be directed towards involving staff and giving their views and ideas importance
  2. Team-working
  3. Empowerment
  4. All employees must be involved
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10
Q

Limitations to kaizen

A
  • some changes cannot be introduced gradually and may need an expensive and radical solution
  • resistance from senior management
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11
Q

Just-In-Time (JIT)

A

Lean method of stock control whereby materials and components re scheduled to arrive precisely when they are needed in the process of production.

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12
Q

Advantages of JIT

A
  • buffer stocks are not required, so this reduces the cost of stock management and waste
  • it avoids the opportunity costs of stockpiling
  • can improve firm’s cash position
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13
Q

Disadvantages of JIT

A
  • administrative and implementation costs of JIT can be relatively high
  • stock control does not enable firms to use economies of scale
  • risk of running out of stock if demand is higher than expected
  • total reliance on third party suppliers to deliver the right products, at the right time
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14
Q

Kanban

A

A method of lean production used to ensure that inventory is based on actual customer orders using a card system with an inventory number attached to each component in the production process.

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15
Q

Advantages of kanban

A
  • Reduce wastage
  • Flexibility in production
  • Improves flow
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16
Q

Disadvantages of kanban

A
  • No room for error - no buffer stock means quality problems/defects will be harder to address
  • Large variations in demand can cause problems
17
Q

Andon

A

A lean production method that uses visual control systems to indicate the status of an aspect of the production process, e.g. machinery, production line or work process.

18
Q

Advantages of Andon

A
  • Allows for quick communication in production floor
  • Problems can be resolved faster
  • Employees are more involved
  • Production status can be observed easily
19
Q

Disadvantages of Andon

A
  • Relies on operators to be responsible
20
Q

Cradle to cradle

A

A sustainable model of production based on natural processes. The underlying principle ofC2C is that there is no waste in nature, making production sustainable for future generations.

21
Q

Quality control

A

The traditional way of quality management that involves checking and reviewing work processes. This is usually carried out by quality controllers and inspectors.

22
Q

Advantages of quality control

A
  • Defects do not reach customers
  • Saves reputation
  • Cheaper specialized QC inspectors can find several issues
23
Q

Disadvantages of quality control

A
  • Does not prevent mistakes made
  • Individuals are not accountable for quality of work
24
Q

Quality assurance

A

The methods used by a business to reassure customers that its products meet certain quality standards.

25
Q

Advantages of quality assurance

A
  • Involves employee participation (more ownership and recognition)
  • Break down certain cultures (them vs. us)
  • Less wastage and production costs
26
Q

Disadvantages of quality assurance

A
  • Time-consuming
  • Requires training
27
Q

Methods of quality management

A
  • quality circle
  • benchmarking
  • total quality management (TQM)
28
Q

Quality circle

A

Small groups of employees who meet on a regular basis to asses quality issues and make recommendations to improve quality standards.

29
Q

Advantages of quality circles

A
  • promote team working
  • almost any organization can use it
30
Q

Disadvantages of quality circles

A
  • not necessary cost-effective
  • staff must be supported by senior management
  • some staff members may be uncomfortable or unable to take on such responsibility
31
Q

Benchmarking

A

A routine process of an organization comparing its products, processes and performance to that of its competitors or its own historical standards.

32
Q

Advantages of bench marking

A
  • almost any aspect of an organization’s operations can be benchmarked, as long as it’s measurable
  • encourages organizations to continually learn from their competitors
  • enables an organization to determine its strengths and weaknesses in comparison to its competitors
  • can improve an organizations performance and competitiveness
33
Q

Disadvantages of benchmarking

A
  • Costs and time implications
  • Can discourage innovation
  • Time and finance must be used to implement change
34
Q

Total quality management (TQM)

A

Involves all workers having responsibility for maintaining quality standards throughout the production process, it applies to all aspects of an organization’s operations.

35
Q

Advantages of TQM

A
  • aims to reduce the reject rate to zero, thereby reducing reworking costs by doing everything right the first time
  • corporate image is likely to improve, as organization has ‘right first time’ approach
  • staff morale improves as they are more valued and empowered by being a part of total quality process and culture
36
Q

Disadvantages of TQM

A
  • Added costs (such as market research)
  • Costs to improve quality
  • Requires all members to be committed
  • Somewhat bureaucratic
  • Time lag before benefits are seen
37
Q

The importance of national and international quality standards:

A

National and international quality awards are given to businesses that show their products meet certain quality standards.

38
Q

Purpose of international quality awards

A
  • Promote quality awareness within organization
  • Recognize quality achievements
  • Attract high calibre employees
  • Strengthen firm’s competitiveness
39
Q

International Standards Organization (ISO)

A
  • One of the most powerful NGOs in the world by providing a single set of quality standards
  • ISO Standard for Quality Management: ISO 9000
  • Endorses businesses that have done quality management

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