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Flashcards in Even newer shit Deck (14)
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1

What is lean production?

- The idea of Lean production encompasses theories of modern Japanese industrial management that are all designed to achieve the reduction and removal of waste within a business.
- it aims at increasing productivity and reducing waste

2

What are the four systems for lean production?

- Just in time time
- Kaizen
- Cell production
- Time based management methods

3

What is Just in time (JIT)?

- Just in time (JIT) tries to ensure that parts, raw materials and components are received and products are made only when there is demand for the parts and demand for the products.
- Managers need a substantial understanding in the production process
- There needs to be strong communications with the suppliers
- There needs to be a strong relationship with employees
- reduces need for storage

4

What is Kaizen?

- Kaizen is japanese for Continuous Improvement
- aims at taking small steps in order to achieve an ultimate goal
- The main element of Kaizen is the use of Kaizen groups. These are groups of workers who have a common stake in part of the production process. For example, a Kaizen group may involve the designer of a component, the installation workers from the production line and the production managers. These groups will meet regularly to discuss problems and to suggest improvements.
- Kaizen is a japanese concept of making ongoing incremental improvements to quality and efficiency
- ideas for improvement come from the workers

5

What are the Key elements of Kaizen?

- All employees, from the managing director down to the shop floor workers, should be asking 'how can i do better?'
- Kaizen does not ignore the need for new technology
- workers must be committed to this business
- a management with belief in the capabilities of the workforce
- effective communications systemms ; workers must be able to communicate suggestions to superiors and other relevant employees. this can be done by kaizen groups

6

What are the benefits of Kaizen/ TQM?

- improved quality
- improved labour relations
- increased competitiveness
- reduction in waste
- less large scale investment
- improved motivation
- increased productivity

7

What is Cell Production?

- The production Line is subdivided into a number of cells
- These cells are groups of workers involved in related tasks.
- The workers are trained so that they can fulfil a number of tasks within the cell, and this allows job rotation. The skills of the workers mean that they can each play a role in improving quality, and also creating flexibility in the production process.
- it is possible for cells to become self manageable with regards to many human resource management issues such as shift arrangements, breaks and holidays

8

What are some Time-based management methods?

- With this approach time is regarded as a key business resource
- focus on speed of development, speed of response and speed of delivery
- reduce time in production process
- when engaging in simultaneous engineering, emphasis is placed on carrying out, as near as possible at the same time, the function involved in designing, producing and marketing a product.

9

For Lean Production, What is considered waste?

- finished goods waiting to be delivered
- raw material and components waiting to be used
- over stocking
- long down times of machines or tools
- lack of training and input from those who understand

10

What is Time based management?

- analyses where time is wasted and acts to reduce this (eg equipment set up times)
- Time based management aims to eliminate time wasted during the design and production.
- looks for opportunities to carry out processes simultaneously
- reduces new product development and launch times
- makes firms more responsive to market changes.

11

What is Critical Path Analysis (CPA) ?

- Critical Path analysis is a decision making technique
- CPA looks at the shortest possible time to carry out a project by identifying when tasks can be carried out simultaneously
- CPA allows for planning and monitoring of a project
- Allows resources to be allocated only when they are needed

12

Benefits of Lean Production?

- cuts costs, removal of waste from the production system
- reduced opportunity cost of stock holding
- Increases efficiency
- increased labour productivity
- reduction in throughput times
- Increases responsiveness of firms to market changes
- Provides competitive advantage
- Improved quality

13

Why is Lean Production hard to implement?

- Business culture
- Theory x managers (workers are lazy)
- inflexible workforce
- lack of investment in training
- needs to be adapted to suit each business
- requires good relationships with suppliers
- requires good relationships with customers

14

What are the effects of the minimum wage on employers?

- It is argued that the minimum wage has made the UK much less attractive to inward investment ; discouraging investment in the UK by foreign companies. Also some businesses have moved production and investment to low labour cost countries in Asia
- small businesses have been most affected, especially those that are labour intensive. The focus for the owners and managers of these businesses, as encouraged by the government and bodies such as the low pay commission, has been to make workers more productive through training and education.
- Overall wage costs could have increased because of the pressure to keep existing wage differentials in place - as the wage of the lowest paid workers increases, so must the wages of those on the next level up and so on
- employers who have felt the worst of the impact are found in the industries mentioned earlier ; sectors such as the care home industry, where rising costs have outpaced increases in income. This has led to the closure of many care homes, resulting in shortages of beds for the elderly in some areas of the country