5.3 Lean Production and Quality Management (HL)
The following features of lean production.
Lean production (or lean manufacturing): an approach to operations management that focuses on cutting waste in the production process with the aim of greater efficiency
Less waste: DOWNTIME (Defects, overproduction, waiting time, non-utilized talents, transportation, inventory, motion, and excess processing)
Greater efficiency: more sales per person, more output per machine hour, output per worker, and less average costs per output unit.
The following methods of lean production.
Continuous improvement (kaizen): A method to improve each production stage by collecting ideas from all workers in different areas.
It must be inclusive of all levels of the hierarchy
No lame attached to any issue raised
Focuses on the process
Advantages | Disadvantages |
Worthy targets | Change is difficult |
Teamwork | Could cause frictions |
Motivate the workers by involving their participation | Difficult to implement in existing systems |
Just-in-time (JIT): Just in time, avoiding stock by being able to get supplies only when the product is ordered.
Stock control: ensure that the business can reply to any sudden, unexpected demand (buffer stock) or take advantage of bulk purchasing of raw materials.
Advantages | Disadvantages |
Reduced Space Needed | Risk of Running Out of Stock |
Waste Elimination | Dependency on Suppliers |
Features of cradle-to-cradle design and manufacturing:
C2C: Production methods that rely on renewable materials to minimize environmental impact.
Refuse, reuse, reduce, recycle, rot (biodegradable)
Advantages | Disadvantages |
Improved competitiveness | Reliability of supply chain |
Lower cost, reduced waste, and increased resource efficiency. | Modification Difficulties |
Sustainable | The cost implication |
Features of quality control and quality assurance
Quality control: check the final products
Quality assurance: check the quality of the products at every stage
Quality: reliable, safe, durable, innovative, and value for money.
Important because it increases sales, and brand loyalty, reduces costs, and could possibly achieve premium pricing.
The following methods of managing quality.
Quality circle: A formal group of employees from different departments meet and discuss how the quality could be improved in their specific department -> Potential ways to implement by different departments
Benchmarking: Sets a specific margin to maintain a high-quality standard
Total quality management (TQM): An approach to quality enhancement that permeates the whole organization. This could involve quality circles and benchmarking.
Lean production → less waste + greater efficiency
TQM → Quality control + quality assurance
Other features of TQM:
Quality chain: all stages concern for quality, a way is by expecting that the next part of the chain is the final customer.
Statistical process control (SPC): all stages are monitored in the form of diagrams, charts, and messages.
Mobilized workforce: Everyone is encouraged to feel pride in their work by having responsibilities and recognition.
Market-oriented production: Focus on what the customer wants -> improved sales and brand loyalty.
The impact of lean production and TQM on an organization
Advantages | Disadvantages |
Create closer working relationships | Costly in the short term |
Motivate the workers | Staff need significant training |
Reduce costs and improve quality | It can create stress on formal relationships in the business |
Enhance the reputation of the company | Hard to maintain |