Lean production Flashcards
(10 cards)
What is lean production?
- Lean production is a production methodology focused on eliminating waste whilst ensuring quality.
- This approach can be applied to all aspects of a business – from design, through production to distribution.
How does lean production aim to cut costs?
- By making the business more efficient & responsive to market needs.
- Sets out to cut out/ minimise activities that do not add value to the production process, e.g. holding of stock, repairing faulty product & unnecessary movement of people & product around the business.
What are the ways in which a business can become more lean?
- Stopping overproduction- so there is not wasted excess stock.
- Reducing waiting time- so equipment & employees are not waiting idle for resources to arrive.
- Transport- not moving resources around unnecessarily.
- Stocks- need enough for a buffer but not excessive amounts.
- Stopping motion- a worker who appears to be busy but isn’t adding any value to the organisation.
- Defects- preventing them so there are not products which dont fufill the expected & required quality.
What are the key aspects of lean production to be aware of?
Just in time management
Kaizen
Total quality management
Quality circles
What is just in time management?
An inventory strategy businesses employ to increase efficiency & decrease waste through receiving goods only as they are needed for production.
What are the benefits of Just in time management?
- Reduce waste in terms of damaged stock / stock going out of date.
- Reduces the amount of space needed as there is no requirement for storage warehouses.
- Save time & reduce the amount of employees required as the stock will be delivered directly to the production line.
- Less waste, space, time & employees will result in lower costs & help improve the competitiveness of the business.
What are the drawbacks of JIT production?
Running out of stock- JIT relies on supplier delivering on time- if there are any transport/ weather issues- will result in halted production.
Opportunities for bulk purchase- Supplies will be purchased in smaller quantities & only when needed- may limit the opportunity for bulk purchase discounts.
Trust- The system is heavily dependent on a good relationship between the company & supplier. A company must have complete trust in the supplier to provide necessary quality- as components will go straight to production line.
What are quality circles?
- A managment technique that uses employees to help solve problems related to their own jobs.
- Circles are formed of employees working together in operation to meet at regular intervals to discuss problems relating to quality & devise solutions for improvements.
- Circles are usually small & led by supervisor/ senior manager.
What are the advantages of quality circles?
Increased efficiency, productivity & profitability!
What is lean prouduction & what does it include?
- Process of streamlining oeprations & processes to reduce waste.
- Leads to improved quality & reduced costs.
- Forms of waste: materials/ resources, time, energy, human effort.
- Principles include waste minimisation- removing processes that dont add value, right first time- zero defects, flexibility, continuous improvement, upply chain management & developing good working realtionships!
