Operational Strategies: Lean Production A2 Business Studies.

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Presentation transcript:

Operational Strategies: Lean Production A2 Business Studies

Aims and Objectives Aim: Understand time based management Objectives: Define lean production Explain Time Based Management Analyse TBM Evaluate TBM

Starter Define waste in a business sense. Wasted materials, wasted time, etc.

Lean Production An approach to management that focuses on cutting waste, whilst ensuring quality. This approach can be applied to all aspects of a business – from design, through production to distribution.

Lean Production Doing the simple things well.. Doing things better… Involving employees in the continuous process of improvement …and as a result, avoiding waste.

Why Cut Waste? Waste = Cost

The Waste Hierarchy

Waste Examples Type of WasteDescription Over-ProductionMaking more than is needed leading to excess stock levels. Waiting TimeEquipment and people standing idle, waiting for resources to produce. TransportMoving resources unnecessarily. StocksHolding too much buffer stock costs money. MotionWorker appears to be busy but is not adding any value. DefectsOutput that does reach the required standard.

Effective Lean Production Requires.. Good relationships with suppliers Committed, skilled and motivated employees Culture of change Trust between management and employees

Time Based Management A general approach that recognises the importance of time and seeks to reduce the level of wasted time in the production processes of a business.

Time Based Management be.com/watch?v= 8PdmNbqtDdI&fe ature=related be.com/watch?v= 8PdmNbqtDdI&fe ature=related Frederick Taylor Ford Factory

Time Based Management - Quicker production - Can relate to performance pay to motivate - Faster product development - Reduction in waste - Greater efficiency - May affect quality of products - May put too much pressure on staff - May demotivate if employees are overworked

Time Based Management What does there need to exist in the business for time based management to be successful?

Time Based Management Requirements Flexible production methods  Able to change products quickly  Can change production volume Trained employees  Multi-skilled staff  Trust between managers and workers

Time Based Management Plenary What does the success of implementing a Time Based Management system depend on?