Lean Production and Quality Management

What is “lean production”?
1. lean production is an approach to operations management that focuses on cutting all types of waste in the production process with one aim: greater efficiency
2. the production process gets rid of all the elements that do not directly add value.
3. the starting point for lean production consists in identifying the values desired by the customer (long battery) then all the stages of the production process that do not add value are eliminated
4. Waste can include: time, transportation, products, space, inventory, energy, talents
5. cutting waste is directly linked to greater efficiency: with less waste, the organisation’s resources will be better used, employed and deployed: physical resources can be used more efficiently, human resources can be developed, financial resources can be used
Methods of lean production
1. Continuous improvement
  1. emphasis is on continuous change, as opposed to just occasional changes
  2. this process may involve suggestion boxes or competitions to find suitable areas for improvements, as often the workers themselves may have very good ideas, based on what they observe or experience directly on the shop floor
  3. it must be inclusive of all levels of the hierarchy
  4. there should be no blame attached to any problem or issues raised
  5. systemic thinking is needed in order to consider the whole production process
  6. kaizen focuses on the process and not on the end product
  7. the main difficulty with kaizen is the fact that it is difficult to maintain the necessary momentum over a long period of time
  8. it requires high levels of commitment and a sense of loyalty by the employers, the culture of the company may influence it as well as the leadership
2. Just in time
  1. a business can hold stock for many reasons: ensure that it can reply to any sudden, unexpected demand, take advantage of bulk purchasing of raw materials
  2. holding stock can incur several costs: not only storage costs but also insurance costs
  3. controlling stock levels is very important for a business
  4. JIC means just in case: holding reserves of both raw materials and finished products in case of a sudden increase in demand.
  5. JIT means avoiding stock by being able to get supplies only when necessary
3. Kanban
  1. one of the systems that support JIT
  2. A Kanban card is a message telling the factory workers what to do next, for example move to the next stage
  3. the aim is to ensure a regular and steady flow without any waste of time and resources.
  4. the rate of demand is used to control the rate of production, it is not a tool of stock control but a tool to facilitate lean production
  5. Kanban cards are computerised
4. ANDON
  1. refers to a signal which informs workers of a problems, delays in a process
  2. when a problem occurs the workers triggers the alert system and a team of co-workers come and help immediately. This means that the problem will be resolved as quickly as possible
  3. Advantage: workers on a production line are immediately notified, supervisors do not need to spend time monitoring production, feedback can be provided to all teams, the whole organisation learns from the problems
5. Cradle-to-cradle design and manufacturing
  1. refers to a recent approach to design and manufacturing based on principles of sustainable development (recycling)
  2. it suggests that products that have been used should be entirely recycled to create the same new products again
  3. this is only the case for a small number of products (clothes or office furniture)
Quality control and quality assurance
1. a key component of operations management is the issue of quality
2. quality is important because it can lead to: increased sales, repeat customers, reduced costs, premium pricing
3. from a marketing viewpoint, a product need not to be a high-quality product but as long as the consumer perception is one of quality then that can often be enough
4. Quality suggests that a product is: reliable, safe, durable, innovative, value for money
Concept
1. Quality control- controlled by one person after product is made by inspection
2. Quality assurance- quality is assured because no one person is in overall control of quality, the whole business is focused on ensuring quality production
Costs
1. Quality assurance- zero rejects are expected— every product is expected to pass inspection
2. Quality control- a certain % is reject rate
Processes
1. Quality control: it is rare to halt production as it is costly to do so, associated with assembly line, quality stops with the job
2. Quality assurance: the company expects to halt production and fix errors, associated with cellular production, quality includes suppliers and after-sales servicing
People
1. Quality control: quality is the responsibility of one person, role culture, autocratic leadership
2. Quality assurance: quality is the responsibility of the team, total quality culture, democratic consultative leadership, 360 degrees communication
3. to ensure quality assurance works effectively, the whole business has to embrace a total quality cultural shift
Quality circles
1. a quality circle can be defined as a formal group of volunteers who meet regularly to discuss and suggest ways of improving quality
2. the meetings are facilitated by a team leader, it is comparable to a focus group for market research
3. quality circles may operate in different ways, they could choose any topic they want to discuss or they may be working on specific issues
Benchmarking
1. benchmarking is about comparing yourself to your competitors
2. some benchmarks are established and the businesses can then compare their practices and standards with those of their competitors
3. an example would the be stars for hotels
Total quality management (TQM)
1. an approach to quality enhancement that permeates the whole organisation
2. can include quality circles and benchmarking
Quality chain
1. as the quality of a business depends on the quality of its suppliers and after-sales service, all stages of the production process must have concern for quality
Statistical process control
1. all stages of production are monitored and information is given to all parties, usually in the form of easy-to-understand diagrams
Mobilised workforce
1. all employers are expected to embrace TQM. Everyone is encouraged to feel pride in their work, give responsibilities and recognition
Market-oriented production
1. focusing on what the customer wants, the business can make sure that it is innovating and continually reinventing its products, it can lead to improved sales and brand loyalty
Advantages of TQM
1. it can create closer working relationships with all stakeholders
2. in can motivate the workers
3. it can reduce costs
4. it can improve the design and production of quality products
5. it can enhance the reputation of the company
Disadvantages of TQM
1. is is costly
2. staff may need significant training
3. it may take time to change a corporate culture
4. it can create a lot of stress on formal relationships in the business
5. it is difficult to maintain over a long period of time

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