3.8 - lean management

Question 1

what is lean management

Answer 1

aims to continuously improve the efficiency and effectiveness of production by identifying types of waste, mapping out the operations processes, empowering employees to identify and eliminate waste and removing all activities that do not add value to a product as it is being produced.

Question 2

what are the principles of lean management

Answer 2

pull, one-piece flow, takt and zero defects

Question 3

what is pull

Answer 3

(Customer demand drives production) is where a business will only produce what the customer wants based on their orders. (reduce overproduction). No need for storage, double handling, lost or damaged stock.

Question 4

what is one piece flow

Answer 4

(Product) Identify all steps taken in operations system (process mapping) and focussing on one item/product at a time, creating smooth, uninterrupted production eliminating idle time and removing any process that doesn’t add value.

Question 4

what is takt

Answer 4

(Time) maximise production flow by timing each stage so that the final product flows smoothly eliminating stoppages or delays or overproduction in some areas, produce items based on the speed of customer demand.

Question 5

what is zero defects

Answer 5

(Quality) Business-wide responsibility training and dedicated meeting times for employee input into continuous improvement and not accepting or passing on defects, reducing waste.

Question 6

advantages of waste minimization and lean management

Answer 6

• Cost savings due to reduction in waste during production including lower disposal, treatment, storage and energy leading to increased net profit.
• Productivity increased due to waste reduction, and better use of inputs therefore competitive edge achieved
• Empowers employees who feel valued and able to contribute to reducing waste and improving business performance

Question 7

disadvantages of waste minimization and lean management

Answer 7

• Can involve high implementation costs. Implementation of technology and training and maintenance and wages costs for waste minimisation based activities.
• Business can lose focus on core business due to focus on waste reduction. Resources and time can be wasted on meetings
• Assumes all employees want responsibility and are motivated towards business goals