5.3 Lean Production and Quality Management (HL ONLY)

lean production

process of streamlining operations and processes to reduce all forms of waste and to achieve greater efficiency

lead to improved quality and reduced cost

waste

any inefficiencies of an organizations

such as materials and resources, time, energy, human effort

lean production 5 principles

waste minimization

right first time approach for 0 defects

flexibility - resource adaptavle to changing needs

continous improvement

supply chain management - develop good relationships with suppliers and intermediaries

methods of lean production

continous improvement (kaizen)

just in time

kaizen

Workers and managers continuously introduce small and incremental changes to improve quality and/or efficiency.

forming kaizen groups

implications of kaizen

culture - trust democratic

structure - wide, 2 way communication

advantages of kaizen

cost cutting

enhanced quality

enhances staff morale

disadvantage of kaizen

demand as extra burden

time consuming to embed

just in time

an inventory management system based on stocks being delivered as and when they are needed in the production process.

stocks include

raw materials semifinished goods finished goods

no stock control is needed for jit as

buffer stock no need

finished goods dispatched after produced

hence eliminates iventory cost

cradle to grave

one time use

planned obsolescence

cradle to cradle

A sustainable model of production based on natural processes.

There is no waste in nature, making production efficient and sustainable for future generations

• recycling and reuse

quality definition

products fulfils its purpose and meets the expectations of the consumer

8 aspect of quality

physical apperance

after sales service

customer service

safety features

fit for purpose

reliability

durability

reputation

substandrad products

product cannot fulfil its purpose or meet expectations of consumers

measures of quality

internal - reject rates

external—level of product returns, product recalls, customer loyalty, market share

why is quality important?

customer income and awareness

increase competition

government legislation

quality management

function concerned with controlling business activities to ensure that products are fit for their purpose.

quality management why?

Gives competitive advantage

Encourages customer loyalty

Provides customer with information and builds consumer confidence in the brand

Reduces costs incurred in solving post sales problems

Helps improve efficiency

quality control

Traditional way of quality management that involves checking and reviewing work processes.

detecting and aliminating

advanatge of quality control

safeguards reputation

cheaper to train QC inspectors (than every individual being trained)

find widespread issues

QC disadvnatae

does not prevent mistakes - expensive

root cause not dealt with

slack is encouraged since individuals are not accountable for teh quality

quality assurance

A lean approach whereby quality is at the forefront of every stage of the development, design, marketing, manufacturing and selling process.

involves all employees

preventing

QA advanatge

employee participation - moivation

less wastage

preventative

QA disad

time energy and training/ redesigning production facillities- expensive

3 methods of managing quality

quality circle

benchmarking

total quality management

quality circle

Small groups of people who meet regularly to examine issues relating to the quality of output and make recommendations for improvement.

Consist of members from different departments

Encourage communication and teamwork in order to solve problems

Investigate ways to improve all aspects of the business, including production, marketing, human resource management and financial control.

benchmarking

A business comparing its products, operations and processes with others in the same industry, especially market leaders.

allow business to emulate best practice to imrpove own iperational efficiency

benchmarking methods

historical (internal

interfirm (external

performance (internal

process (internal

international (external

benchmarking pros

Reduce the performance gap with its rivals

Increase competitiveness and lower production costs

Better than improving through ‘guessing’

cons of benchmarking

Costs and time of collecting relevant information

Lack of differentiation by replicating competitors

Discourages innovation

total quality management

A process that requires the dedication of EVERYONE in the organization to commit to achieving quality standards

See quality from the perspective of customers

Employees need to be properly trained to check and correct their own work.

E.g. Kaizen

pros of tqm

Increases staff motivation —> staff empowered

Reduces / eliminates waste

Focuses on meeting customer needs —> gives competitive edge

Enhances organization’s corporate image

cons of tqm

Only works if all employees are committed

Ongoing costs of researching customer needs, staff training

Procedures and processes are required to be administered and audited —> bureaucratic

international and national quality standards

national and/or international benchmarks that enable certification of quality assurance.

external bodies

quality award symbol or logo

undergo regular testing by agents

Waste example

overprocessing

time

human effort

materials

energy (light, ac)

quality circle limitations

some individuals remain unmotivated by teamworking, extra responsibility or empowerment

ISO 9000

world's most widely recognised standard for

quality management. It is endorsed by the ISO to firms that use quality management systems to meet the needs of customers.