LEAN PRODUCTION
LEAN PRODUCTION
Lesson Objective
Evaluate the techniques of lean production.
What is lean production?
Lean production is an approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of a business – from design, through production to distribution. Lean production aims to cut costs by making the business more efficient and responsive to market needs.
Text
LEAN PRODUCTION
Started as a Japanese production concept but is now widely adopted throughout global industry.
Linked with some approaches such as empowerment of workers, efficient use of capacity, JIT and TQM.
Aims to reduce waste.
Overall objective to produce quality output with fewer resources.
Cut out anything in the production process that adds complexity, cost and time that does not add value to the customer.
Main Sources of Waste
Excessive transportation of components and products
Excessive inventory holding
Unnecessary movement of employees
Waiting time
Over-production
Over-processing
Defects
Underutilised talent
Main Sources of Waste
Excessive transportation of components and products
Excessive inventory holding
Unnecessary movement of employees
Waiting time
Over-production
Over-processing
Defects
Underutilised talent
Lean Production Approaches
KAIZEN a philosophy that believe that all employees have something to contribute to improving business efficiency the way the product is made.
KAIZEN suggest that often workers actually know more than managers about how a job should be done or how productivity could be improved because they do the task than the manager with no hands-on experience of production.
Conditions Necessary for KAIZEN to Work
Management culture must allow employment involvement.
Teamwork is essential.
Each kaizen group should be given the power to take decisions regarding workplace.
Limitations of Kaizen Approach
Some changes cannot be introduced gradually and may need a radical and expensive solution such as an AI-based operations system.
There are resistance from senior managers to such programme due to their existing culture.
Tangible cost in the short-term such as employee training and lost output as a result of group meeting times.
The most important advances tend to be early on during the kaizen programme which make later changes less significant.
QUALITY CIRCLE
A Japanese original approach to quality.
Based on worker involvement in improving quality, using small groups of employees to discuss quality issues.
Teamwork and participation can both improve quality and increase worker participation.
Aim to investigate quality problems and present solutions to management.
Main Benefits of Quality Circle
They improve quality through joint discussion of ideas and solutions.
Improve motivation through participation.
They make full use of the knowledge and experience of the employees.
Main Conditions Determining Success of Quality Circle
Circle members must be committed to improving quality.
Members must be given training in holding meetings and problem-solving.
They need full support from management.
Teams should be empowered to implement the recommendations.
Simultaneous Engineering
A method of developing new products which saves time.
The stages od design, market research, costing and engineering tasks are all done at the same time , not one after the other.
CELL PRODUCTION
Cell production is a form of flow production.
Production line is split into several self-contained mini-production units known as cells.
Each individual cell produces a complete unit of work, not just a small part of it.
Each cell has a team leader and below that a single level of hierarchy made up of multi-skilled workers.
Performance of each cell is measured against pre-set targets such as output levels, quality and lead time.
Cells are responsible for the quality of their own complete units of work.
CELL PRODUCTION
The cell production system has led to:
Significant improvements in worker commitment and motivation
Increased teamwork and a sense of ownership of the complete unit of work
Job rotation within the cell
Increased productivity
JIT Inventory-Control Principle
WASTE MANAGEMENT
Ways lean production reduce waste:
Adopting JIT to reduce inventory holdings and risk of damage before materials and components are needed in production.
Adopting TQM and zero-defect principles.
The use of production methods that allow for the use of recycled materials.
Main Advantages of Lean Production
Waste of time and resources is reduced or eliminated: sustainability of operations is improved.
Efficiency in increased and average costs are reduced, leading to higher profits.
The work area is less crowded and easier to operate.
There is less risk of damage to inventories as lower level is held.
New products are launched more quickly.
Quality is improved.
Employees’ jobs are enriched, their roles enhanced, and motivation improved.
Flexible working improves capacity management by allowing resources to be switched from processes with spare capacity to processes reaching maximum capacity.
Limitations of Strategies to Achieve Lean Production
Business may have difficulty in forecasting demand.
Some businesses depend on customer service as their USP.
Lean production can result in job losses as this one aspect of increased efficiency.
The costs of new technology and retraining might be too high.
Some manufacturers which specialize in one-off job production may decide against investing in lean production techniques.
Links Between Lean Production and Other Operations Issues
Inventory control (JIT)
Quality (TQM & Zero-defects)
Employees’ roles (need for flexibility)
Capacity management (flexible and lean operations)
Efficiency (waste reduction)