1. Lean Production Quality Management (HL)

2. By the end of the chapter You should be able to … Outline the following features of lean production Less waste; greater efficiency Distinguish between the following lean methods: Kaizen, Just-in-time, Kanban, Andon Explain the features of cradle-to-cradle design Outline the features of quality control and assurance Explain: quality circle, benchmarking, TQM Examine the impact of lean production & TQM Explain the importance of quality standards

3. What is “lean production” An approach to operations management that focuses on cutting waste in the production process Goal – greater efficiency Japanese origin Lean – production process gets rid of all elements that don’t add value Starting point – identify values that are desired Eliminate waste at all stages of production

4. How is “waste” interpreted? Time – waiting for the next stage of production, etc. Transportation Products Space Inventory Energy Talents In lean production, meaning of “waste” is very broad;

5. Methods of Lean Production Continuous Improvement (kaizen) Seeks suggestion for improvement from workers Certain key principles: Philosophy must be adopted by the entire organization No blame attached to any problem or issues raised Systematic thinking needed to consider whole production process Kaizen focuses on the process, not on end product

6. Just-in-time (JIT) Involves amount of inventory a business has Extra inventory (buffer stock) can result in extra costs: Storage, insurance, staff Stock Control – a fine balance between: Just-in-Case Holding reserves in case of an increase in demand Traditional method of stock control Just-in-Time Getting supplies only when needed; producing only what is ordered No buffer stock is held

7. Kanban Japanese word – supports Just-in-time A tool to facilitate lean production Uses a kanban card A message telling workers what to do next Aim – to ensure a steady flow without waste of time or resources Modern kanban cards are computerized, electronic bar codes Kanban originates in automotive industry, can be transferred to other areas

8. Andon A signal which informs workers of a problem Advantages: Workers at all levels are immediately notified Supervisors able to spend time problem solving rather than monitoring Feedback provided to all teams Whole organization learns from problems and mistakes – enables continuous improvement

9. Cradle-to-Cradle Design & Manufacturing Approach to design & manufacturing based on principles of sustainable development Suggests that products once used, should be recycled. Current trend toward environmental sustainability puts pressure on companies to recycle in the manufacturing process C2C certification requires criteria be met – p. 358 Cradle-to-cradle still in infancy

10. Quality control & quality assurance Quality control has moved toward Quality Assurance Change attributed to the work of W. Edwards Deming Quality Control v. Quality Assurance – p. 360 The whole business must embrace quality in order for it to be successful. 3 methods are possible to manage quality:

11. Quality Circles A formal group of volunteers who meet regularly to discuss & suggest ways of improving quality Meetings facilitated by a team leader Comparable to a focus group Suggest solutions to problems Established in Japan, 1962; used mainly in Japan and China

12. Benchmarking A tool used by businesses to compare yourself to your competition Benchmarks established as a point of reference; businesses can compare their practices and standards Example – hotel ratings Benchmarking can be done in various ways

13. TQM An approach to quality enhancement Table 5.3.2 – Features of TQM Page 363 – National and International Quality Control Standards

14. Key Terms Lean Production Kaizen JIT JIC Kanban Andon Cradle-to-cradle design Quality Circle Benchmarking TQM Student Workpoint 5.10 Student Workpoint 5.11

15. Revision Checklist Read through checklist – page 364.