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Lean Production
Techniques that focus on cutting waste whilst maintaining, or improving, quality.
Kaizen
A system that concentrates on small, but frequent, improvements in every aspect of the production process.
Just-In-Time (JIT)
A technique used to minimise inventory holdings at each stage of the production process, helping to minimise costs.
Cell Production
A form of flow production whereby the production line is split into a series of self-contained cells, each responsible for the production of complete units of output.
Time-Based Management
A technique that recognises the importance and cost of time, seeking to reduce time wasted in the production process.
Lean Production Techniques
Practices used to reduce waste and improve productivity, including kaizen, just-in-time, cell production, and time-based management.
Benefits of Just-In-Time
Less costs in holding stock, less working capital required, less obsolete or ruined stock, lower associated costs, and avoids having unsold stock.
Difficulties of Just-In-Time
Little room for error, very reliant on suppliers, unexpected orders harder to meet, delays in deliveries can halt production, high initial setup costs, and complex systems.
Kaizen Groups
Groups formed by employees encouraged to work together on continuous improvement.
Total Quality Management
A vital component that aims to improve the quality of the production process.
Self-Contained Cells
Teams in cell production that take responsibility for the production of complete units of output.
Flexibility in Resources
Required in time-based management to adapt machinery and staff to reduce production time.
Impact of Lean Production
The effects of lean production techniques on businesses and their stakeholders.
Continuous Improvement
The ongoing effort to improve products, services, or processes.
Production Process
The series of steps that are taken to produce goods or services.
Inventory Holdings
The amount of stock kept at each stage of the production process.
Lead Time
The time it takes from the start of a process until its completion.
Quality Standards
The criteria that products or services must meet to be considered acceptable.
Motivated Workforce
A highly engaged and committed group of employees essential for successful kaizen implementation.
Production Line
A sequence of processes through which a product passes from start to finish.
Obsolete Stock
Inventory that is no longer usable or sellable.
Work in Progress
Items that are in the process of being manufactured but are not yet finished goods.
Finished Goods
Products that have completed the manufacturing process and are ready for sale.
Lean Production
The idea of lean production encompasses theories of modern Japanese industrial management, which are all designed to achieve the reduction and removal of waste within a business.
Just-in-Time (JIT)
A tool that focuses on supplier relationships, customer relationships, employee involvement, Kanban, and management understanding.
Kaizen
Businesses take the view that one of the main objectives of their existence is to be continually making small incremental steps in the improvement of quality, design and waste reduction.
Cell Production
With cell production, the production line is subdivided into a number of cells. These cells are groups of workers involved in related tasks.
Advantages of Lean Production
Improves cash flow as very little stock is held.
Advantages of Lean Production
Waste is reduced as no obsolete or damaged stocks occur.
Advantages of Lean Production
Factory space can be freed up for more productive use.
Example of Waste
Raw materials lying around unused.
Example of Waste
Work in progress that is sitting in parts bins waiting to be used in production.
Example of Waste
Finished product sitting in a warehouse waiting to be delivered to customers.
Example of Waste
Skills and knowledge of workers not being used by management.
Impact of Technological Change on Businesses
Cost involved in having to frequently change and maintain machines.
Impact of Technological Change on Businesses
Increase productivity - more can be produced with less resources and as a result more profit can be made.
Impact of Technological Change on Businesses
New technology often results in time being saved and fewer materials being used.
Impact of Technological Change on Businesses
Improving the working environment - safer working environment in manufacturing modern equipment has made work easier and more tolerable.
Impact of Technological Change on Businesses
Technology leads to reduction in staffing needs - cost savings to businesses but leading to unemployment for members of staff.
Impact of Technological Change on Businesses
Need for re-training as new skills are required.
Impact of Technological Change on Customers
Rapid technological change and innovation has given customers wider choice of products.
Impact of Technological Change on Customers
Much of the technological change has occurred in ICT resulting in improved speed of communications.
Disadvantages of Lean Production
A lot depends on the reliability and flexibility of suppliers.
Disadvantages of Lean Production
Ordering and administration costs are likely to rise.
Disadvantages of Lean Production
Bulk buying advantages may be lost.
Disadvantages of Lean Production
Difficult to cope with sharp, unexpected increases in demand.
Disadvantages of Lean Production
Reputation can be damaged if customers are let down by late deliveries as no buffer stocks are held.
Cell Design
Groups of workers who have a common stake in part of the production process, meeting regularly to discuss problems and suggest improvements.
Job Rotation
The practice of training workers to fulfil a number of tasks within the cell, allowing them to switch roles.
Quality Improvement
The role played by skilled workers in enhancing product quality and creating flexibility in the production process.
Job Enrichment
Elements of cell design that improve motivation by enhancing the variety and complexity of tasks.
Self-Managing Cells
Cells that can manage human resource issues such as shift arrangements, breaks, and holidays independently.
Time-Based Management
An approach that regards time as a key business resource, emphasizing speed of development, response, and delivery.
Kaizen
A continuous improvement methodology that involves all employees in seeking ways to enhance their work processes.
Motivated Workforce
A workforce that is committed to the business and actively participates in improvement initiatives.
Effective Communication Systems
Systems that allow workers to communicate suggestions to superiors and relevant employees.
Job Security
The assurance that workers will not lose their jobs due to suggested process improvements.
Production Process Understanding
Management's clear understanding of production processes to organize, control, and plan effectively.
Benefits of Kaizen
Includes improved labour relations, quality, productivity, motivation, competitiveness, waste reduction, and less large-scale investment.
Just-in-Time (JIT)
A strategy that ensures parts and products are made only when there is demand for them.
Lean Production
A concept that aims to reduce and remove waste within a business to increase productivity and reduce costs.
Waste Reduction
The goal of lean production to eliminate unnecessary elements from the production process.
Supplier Relationships
Key focus of JIT tools that emphasizes collaboration and communication with suppliers.
Kanban
A scheduling system that helps manage workflow and inventory in a JIT environment.
Critical Path Analysis
A project management technique used to determine the longest stretch of dependent activities and measure the time required to complete them.
Simultaneous Engineering
An approach that integrates design and manufacturing processes to improve product development speed.
Lean Production
A production approach that aims to reduce waste and improve efficiency by minimizing stock levels.
Just-in-Time (JIT)
A strategy where materials are ordered and received only as they are needed in the production process, minimizing stock holding.
Kaizen
A philosophy of continuous improvement in quality, design, and waste reduction through small incremental changes.
Cell Production
A production method where the production line is divided into cells, each consisting of groups of workers performing related tasks.
Waste Reduction
The process of minimizing waste in production, including unused raw materials, work in progress, and finished products waiting for delivery.
Productivity
The efficiency of production, often measured by the output per unit of input, which is raised in lean production systems.
Lead Times
The time taken from the initiation of a process to its completion, which is reduced in lean production systems.
Defective Products
Products that do not meet quality standards, which are reduced through lean production practices.
Supplier Reliability
The dependability of suppliers in providing materials on time, which is crucial for lean production success.
Cost of Stock Holding
The expenses associated with storing unsold goods, which are significantly reduced in lean production.
Technological Change
The impact of new technologies on production processes, often leading to increased productivity and reduced material use.
Skills and Knowledge Utilization
The effective use of workers' skills and knowledge in production, which can be hindered by poor management.
Motivation in Lean Production
The increased motivation of workers due to greater responsibility and teamwork encouraged by lean production practices.
Training for Kaizen
The process of educating workers to perform multiple tasks within a cell, allowing for job rotation and flexibility.
Impact on Employment Levels
The reduction in staffing needs due to technological advancements, which can lead to cost savings but also unemployment.
Rapid Technological Change
The quick evolution of technology that provides customers with a wider choice of products and improved communication.
Buffer Stocks
Extra inventory held to prevent stockouts, which are minimized or eliminated in JIT systems.
Ordering and Administration Costs
Expenses associated with managing orders and inventory, which may increase in lean production systems.
Unforeseen Interruptions in Supply
Unexpected disruptions in the supply chain that can affect production, particularly in JIT systems.
Improvement in Reliability
The enhanced dependability of production processes and delivery times as a result of lean practices.
Higher Standard of Living
An improved quality of life for consumers, often resulting from technological advancements and increased product availability.
Time-Based Management
With this approach, time is regarded as a key business resource. Speed of development, speed of response and speed of delivery are becoming increasingly important. Speed adds value!
Kaizen
All employees, from the managing director down to the shop floor workers, should be asking, 'How can I do what I do better?' - 'How can we do what we do better?'.
Motivated Workforce
The workers must be committed to the business.
Management Belief
Management must have belief in the capabilities of the workforce.
Trained Workforce
The workers must have the ability to understand their roles and complete their tasks efficiently.
Effective Communication Systems
Workers must be able to communicate suggestions to superiors and other relevant employees.
Job Security
Workers will not suggest process improvements if their jobs are threatened by these improvements.
Production Process Understanding
Management must have a clear understanding of the production processes in order that they can organise, control and plan to enable workers to meet the needs and quality requirements of the 'customers' within the organisation.
Benefits of Kaizen
Improved labour relations, improved quality, increased productivity, improved motivation, increased competitiveness, reduction in waste, less large-scale investment.
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.
Waste in Lean Production
Waste is any process that does not give 'added value' to a product.
Examples of Waste
Raw materials lying around unused, work in progress sitting in parts bins, finished products sitting in a warehouse, and skills and knowledge of workers not being used.
Lean Production Goals
Lean production aims to remove all elements of waste from the production process to increase productivity and reduce costs.
