chapter 12 - efficiency and competitiveness using lean production

Question 1

batch production

Answer 1

products are made a specified groups and can go through a series of steps to make the final product

Question 2

cell production

Answer 2

bringing together machines or people involved in a step of production and grouping them close together to one another, distinct from other groups

Question 3

flow production

Answer 3

production of substantial amounts of standardised products in a constant flow including on assembly lines

Question 4

job production

Answer 4

a firm works on a single job and completes it before proceeding to the next similar or different job

Question 5

just in time

Answer 5

involves scheduling the delivery of inputs in a precisely coordinated way that minimises the quantity of stock required

Question 6

kaizen

Answer 6

encourage constant improvement

Question 7

lead times

Answer 7

the time delay between a decision being made and the decision veing carried out

Question 8

lean production

Answer 8

an approach to management that focuses on cutting out waste whilst ensuring quality

Question 9

quality

Answer 9

the ability of a product or service to meet customer expectations

Question 10

quality assurance

Answer 10

the checking of a product or service at each stage of its production, relies upon self checking

Question 11

quality circles

Answer 11

informal groups of workers, volunteer to meet regularly to discuss how to improve quality . Their recommendations are fed back to management, increasing employee motivation as well as quality

Question 12

quality control

Answer 12

the checking of a good or service before it is delivered to the customer

Question 13

total quality management

Answer 13

sees quality as the responsibility of all employees; each employee is a link in the chain and treats the next link as if they were an external customer

Question 14

5 factors of quality for products

Answer 14

1. aesthetics
2. features
3. augmented aspects e.g. warranty
4. performance
5. intangible aspects

Question 15

6 factors of quality for services

Answer 15

1. friendliness of staff
2. speed of service
3. efficiency of service
4. staff knowledge
5. cleanliness of facilities
6. appearance of environment

Question 16

5 ways forms can manage quality

Answer 16

1. training and motivating employees
2. understanding customers expectations
3. using technology
4. working closely with supervisors
5. quality systems

Question 17

advantages of quality control (5)

Answer 17

1. quality can be monitored
2. stops faulty products reaching customers
3. inspector takes responsibility
4. common problems can be identified
5. often a robust system

Question 18

disadvantages of quality control (4)

Answer 18

1. takes responsibility away from operators
2. requires specialists
3. problems only identified at the end of process
4. waste levels may be high

Question 19

advantages of quality assurance (5)

Answer 19

1. spots any faults early
2. motivates workers who are responsible for ensuring quality standards
3. aims to achieve an onmbjective of zero defects
4. enhances the reputation of the business as less chance of faulty goods reaching end customer
5. ensures clear systems are in place

Question 20

disadvantages of quality assurance (4)

Answer 20

1. requires staff training and high levels of staff commitment
2. can slow down production process
3. May demotivate workers who feel under pressure
4. opportunity cost of managers time

Question 21

benefits of TQM (5)

Answer 21

1. achieve operational objectives
2. gain a competitive advantage
3. reduce unit costs
4. enhances reputation
5. motivated workforce

Question 22

problems of TQM (4)

Answer 22

1. reluctance of employees
2. requires finance
3. reliant on good relationships
4. Once achieved must be monitored to ensure standards are being maintained

Question 23

6 competitive advantages of TQM

Answer 23

1. achieve a lower unit cost
2. less waste
3. positive image
4. USP
5. pricing decisions
6. motivated workforce

Question 24

5 aims of lean production

Answer 24

1. minimising stock levels
2. doing the simple things well
3. doing things better
4. involving employees in the continuous process of improvement
5. avoiding waste

Question 25

types of waste (tim woods)

Answer 25

Transport, Inventory, Motion, Waiting, Over production, Over processing, Defects and Skills

Question 26

5 benefits of JIT

Answer 26

1. less costs in holding inventory
2. less working capital required
3. less obsolete or ruined inventory
4. lower associated costs
5. avoids having unsold stock

Question 27

6 difficulties of JIT

Answer 27

1. little room for error
2. very reliant on suppliers
3. unexpected orders harder to meet
4. any delays in deliveries due to unforseen circumstances can cause production to come to a halt
5. high initial set up costs
6. compex systhace to be pit in place and understood

Question 28

7 competitive advantages of lean production

Answer 28

1. minimised stick holding
2. improved cash flow
3. JIT systems
4. strong supply chain relations
5. Good customer relations
6. getting it right first time and limited waste = zero defects and lower cost
7. motivated workers

Question 29

6 competitive disadvantages of lean production

Answer 29

1. low stock holding
2. often complex, specialised stock systems needed
3. sudden changes in demand may be difficult to respond to
4. there is no room for storage
5. equipment failure stops production
6. very low margin for error