5.3 Lean production and quality management

Question 1

Lean production

Answer 1

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

Question 2

Features of lean production

Answer 2

• less waste
• greater efficiency

Question 3

Less waste

Answer 3

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

Question 4

Sources of waste

Answer 4

• Waiting times
• Overproduction
• Motion
• Defects
• Over-processing
• Transportation
• Stockpiling

Question 5

Greater efficiency

Answer 5

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.

Question 6

Greater efficiency can be achieved by:

Answer 6

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

Question 7

Methods of lean production

Answer 7

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

Question 8

Continuous improvement (Kaizen)

Answer 8

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

Question 9

Conditions necessary for kaizen to operate

Answer 9

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

Question 10

Limitations to kaizen

Answer 10

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

Question 11

Just-In-Time (JIT)

Answer 11

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

Question 12

Advantages of JIT

Answer 12

• 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

Question 13

Disadvantages of JIT

Answer 13

• 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

Question 14

Kanban

Answer 14

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.

Question 15

Advantages of kanban

Answer 15

• Reduce wastage
• Flexibility in production
• Improves flow

Question 16

Disadvantages of kanban

Answer 16

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

Question 17

Andon

Answer 17

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.

Question 18

Advantages of Andon

Answer 18

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

Question 19

Disadvantages of Andon

Answer 19

• Relies on operators to be responsible

Question 20

Cradle to cradle

Answer 20

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.

Question 21

Quality control

Answer 21

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

Question 22

Advantages of quality control

Answer 22

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

Question 23

Disadvantages of quality control

Answer 23

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

Question 24

Quality assurance

Answer 24

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

Question 25

Advantages of quality assurance

Answer 25

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

Question 26

Disadvantages of quality assurance

Answer 26

- Time-consuming - Requires training

Question 27

Methods of quality management

Answer 27

- quality circle - benchmarking - total quality management (TQM)

Question 28

Quality circle

Answer 28

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

Question 29

Advantages of quality circles

Answer 29

- promote team working - almost any organization can use it

Question 30

Disadvantages of quality circles

Answer 30

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

Question 31

Benchmarking

Answer 31

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

Question 32

Advantages of bench marking

Answer 32

- 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

Question 33

Disadvantages of benchmarking

Answer 33

- Costs and time implications - Can discourage innovation - Time and finance must be used to implement change

Question 34

Total quality management (TQM)

Answer 34

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

Question 35

Advantages of TQM

Answer 35

- 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

Question 36

Disadvantages of TQM

Answer 36

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

Question 37

The importance of national and international quality standards:

Answer 37

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

Question 38

Purpose of international quality awards

Answer 38

- Promote quality awareness within organization - Recognize quality achievements - Attract high calibre employees - Strengthen firm’s competitiveness

Question 39

International Standards Organization (ISO)

Answer 39

- 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