Lean production vs mass production

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Lean production vs mass production

  1. 1. FGCU TRA 6158 Lean/ JIT Systems Discussion Write–up MICHELOT Sophie
  2. 2. QUESTION I Contrast, and explain the differences of conventional (push, batch or mass) and lean approaches used by Joe and Ralph. Assembly design and production: 2
  3. 3. System Orders management Lots Takt time Technologies & tools Joe’s (conventional) PUSH  Waiting times  Fixed schedule to be readapted through the process  Movement of parts of assembly between each workshop MAKE-TO-ASSEMBLY  Sequenced improvement (sacrificed batches) TWO BATCHES  Risk of bottleneck SLOW PACE  Pace slowed by numerous problems and errors  Waiting times and inactive operators HEAVY USE OF TECHNOLOGY  Lack of coherence between the engineering and the manufacturing departments (different drawings, methods, and materials recommended)  Heavy use of computer for rescheduling, work process at each workshop Ralph’s (lean) PULL  No waiting time (smooth production)  Flexibility and early detection of problems or errors  Work cells (no useless movements) MAKE-TO-ORDER  Adaptability at every moment, continual improvement SMALL LOTS  Constant adaptability SMOOTH PACE  No waiting time  Early detection of problems  No inactive operator SMART USE OF TECHNOLOGY  Collaboration between each operator  Smart use of computer technologies (statistical analysis)  No useless paperwork 3
  4. 4. Quality Inventory Waste Rework Productivity Leadership Motivation Group dynamics POOR QUALITY  Numerous errors through the production process  High pressure on time schedule harming the quality of final products  Lack of exchanges between workers to make improvements LARGE INVENTORY  Large inventory managed by one person  Lots of paperwork for inventory management  Costly inventory of raw materials WASTED RESOURCES  Waste due to numerous errors and defects  Inactive workers due to waiting times  Ineffective activity (cutting)  Movements between each workshop NECESSARY REWORK  Lots of rework needed through the process  Need for qualified workers to fix problems  Rework necessary at almost every area creating bottlenecks LOW PRODUCTIVITY  Waiting times  Inactive workers  Unqualified workers  Ignorance of the work of others AUTHORITARIAN STYLE  One leader (the foreman)  Conflict management  Strong hierarchy POOR MOTIVATION  No reward  No empowerment of workers INDIVIDUALISTIC BEHAVIOR  Poor support between workers HIGH QUALITY  Every worker is responsible for quality  Customer oriented culture  No fixed inspection area but rather continual improvement NO INVENTORY  Efficient delivery by supplier (pre-cut raw material)  Less tools required due to limited work area NO WASTE  Efficient assembly line (work cell directly inside the garage)  No inactive worker, no waiting time  Focused on core competencies  No useless transportation of parts CONTINUAL IMPROVEMENT  Cell work permits direct action on potential errors  Production stopped if any problem (no domino effect)  Poka yoke use HIGH PRODUCTIVITY  Polyvalent agents  No waste time  Continual improvement  Collaboration between workers COLLABORATIVE STYLE  Collaboration between workers  Weak hierarchy (everyone on the same level)  Responsibility and commitment of everyone HIGH MOTIVATION  Empowerment of workers  Corporate culture TEAM WORK  Support and respect between workers 4
  5. 5. QUESTION II Read one of the lean service articles. Summarize how these businesses use lean principles. Describe the 5S concept. A gleaming example This article deals with a retail store specialized in clothes and footwerar; Bob’s stores. The company is operating in “’ stores through six states in the US. The top management decided to implement a new service system based on lean production principles; 5 Ss, best methods, and engineered standards in particular. By targeting this new system of operation, the top management is setting new goals for the company: increasing customer value, reducing waste, and implementing continuous improvement as a corporate culture. Concretely, the top management selected a showcase store and formed a steering team and a core implementation team. The aim was to train people to the principles of the 5Ss and make the first changes in the selected showcase store. Here are the steps followed, regarding the 5Ss requirements: Sort and remove: the aim is to eliminate all unnecessary items from work stations, to keep only necessary items, thus allowing better efficiency of workers Shine and inspect: this step consists in getting a clean and safe place to work Set locations and visual cues: the principle of this step is to define a place for each item, and to make this chosen place visible by employees thanks to labels for instance Systematize: this step consists in establishing lists of tasks to be accomplish by employees on different time bases (daily, weekly, monthly). The aim is to create routine among each job at the store. Stay the course: the principle of this step is to create tools in order to keep a full commitment from employees. It implies a reward system and other motivation tools. 5
  6. 6. After the completion of these five steps, the top management conducted a more scientific approach by establishing benchmarks. It means that the time to complete frequent tasks was measured, so as to define clear standards. The aim for employees is to get faster on these tasks to spend more time assisting customers. Such an overall approach has the advantage to imply every employee, which gives a solid basis to the development of a new corporate culture; continuous improvement. QUESTION III Discuss the advantages and disadvantages of mass and lean / JIT systems. Give examples from the articles provided in Canvas and from your own work experiences. MASS PRODUCTION LEAN PRODUCTION ADVANTAGES Reliance on technologies Assembly design Automation Scientific approach of work (division of labor) Computerization Work cells Suppliers network No inventory Customer focus Cost efficiency Customization Adaptability of processes Quality Economies of scales Cost of labor Volume oriented DISADVANTAGES Assembly design Space required Inventories Detection of errors Production focus Lack of customization Wasted resources Bureaucracy Reliance on network Supply chain risk Commitment from suppliers Short-term forecasting Cost of implementation Commitment from the top Culture of change Continual improvement 6
  7. 7. MASS PRODUCTION Advantages: Reliance on technologies: Automation: mass production often means the systematic use of developed machines and tools. The aim here in the implementation of automation, which a full capacity of production 24/7, with limited defects and errors. Scientific approach of work (division of labor): mass production has been historically based on the scientific approach of labor with division of labor for instance. Tasks are measured in terms of time for completion; which allows the establishment of standards and goals, as well as performance evaluation and time schedules. Computerization: mass production has great opportunities in computerization as it relies on heavy processes which need automation and planning. Computers answer to these needs and allow an instant evaluation of the state of advancement of production. Cost efficiency: Economies of scales: mass production, as its name indicates, is based on high volume production. This approach obviously leads to opportunities of economies of scale through a heavy use of machinery, numerous shifts, and standardization of tasks. Cost of labor: with a division of labor, mass production allows the recruitment workers with low wages. The level of qualifications of these workers stay limited. 7
  8. 8. EXAMPLE, GM (Learning through alliances: GM & NUMMI): for a certain period, GM has followed the principles of mass production system. Such a system offered clear advantages in the automobile industry, where investments are quite high. Thus, to produce in high volume allowed the industry and GM to make profits. From division of labor to automation, GM was able reduce costs while increasing production capacity and quality of output. Nonetheless, GM finally chose to adopt the lean production system, at a time when it faced a change of the market structure, demanding more innovation and customization. Disadvantages: Assembly design Space required: mass production often requires huge space for both production and inventories. Mass production is characterized by a certain vertical integration. A lot of tasks are completed inside the plant. The number of activities realized can explain, by the amount of machines, tools, workers implied, the size of space required. Inventories: mass production functions with a system of large inventories, which gathers raw material inventory, temporary assembled items, and finished goods. As the objective of mass production is to maximize volume produced, the inventories are huge and require a heavy system of record. Detection of errors: mass production is based on a production by a defined number of batches. Inspection is made at different fixed point in the production process. If errors are detected, there is a risk of increased waiting time and domino effect. 8
  9. 9. Production focus Lack of customization: mass production is more focus on the supply side rather than the demand side. Customization is a demand from customers and a challenge for mass production systems. The production with batches asks standardization of items produced. One solution, however, is to realize some tasks dedicated to customization at the very end of the production process. Wasted resources: if management wants to make any improvement on the system, it will imply wasted resources, as the mass production system is fixed. Thus, to make improvement, rescheduling is necessary, as well as record, training of staff, use of more resources,… Bureaucracy: mass production uses bureaucracy in an inefficient way. Bureaucracy has become a divided task and thus, this department needs plethora of information translated into red tape to keep an eye on the production process. EXAMPLE; mass servicing (Service with a smile): implementing efficiency and standardization is not always easy in the service sector. Mass services are referred as a system where the objective is put on the volume of services realized, rather than customer satisfaction, and thus where faster is better. A good example could be the call centers where a high volume of calls are taken by operators following non adapted procedures and evaluated on the time they spent on each call. Moreover, they have to fill a plethora of forms and documents to explain what they did during the shift, particularly if a customer complained. Here again, this kind of industry tends toward lean system, and the work cell system in particular. 9
  10. 10. LEAN PRODUCTION Advantages: Assembly design: Work cells: lean production introduces the concept of work cells, where employees are working together in workshops, completing different tasks. Work cells allow teamwork and support between employees, as well as continual improvement by exchanging of ideas and knowledge. Suppliers network: lean production is focused on core competencies and the limitation of waste. Inventories can thus be considered as wastes. To achieve production, the lean system needs a strong network of suppliers, respecting tight schedules, and applying themselves lean production system. No inventory: once again, inventories are considered as waste, thus they are limited to essential pieces in case of break machine for instance. Customer focus: Customization: orders precede supply in the lean production system. Customers can express their envies and expectations and then get what they have asked for. Lean production system searches for maximizing customer value and customer satisfaction. Adaptability of processes: by implementing continuous improvement, the lean production system is characterized by adaptability. It allows customization of orders, improvement during the process, and best quality. 10
  11. 11. Disadvantages: Reliance on network: Supply chain risk: the lean production system is heavily based on a large network of suppliers. Supply chain risks such as late delivery or defective delivered products can always happen. Trust relationships are of paramount importance as well as strong commitment. Commitment from suppliers: most of the suppliers needed in a lean production system have to apply themselves the same system. It gives a certain power of negotiations for some companies, but it still raises ethical questions. Short-term forecasting: lean production system is based on everyday operations or short-term forecasting. It can be difficult to have a long-term vision with such a system. However, it is compensated by the principles of continuous improvement. Cost of implementation: Commitment from the top: lean production is often inefficient without a strong commitment from the top. It implies indeed a specific leadership style where employees are responsible and autonomous. Thus, it is of paramount importance that the top management strongly believe in this system. Culture of change: lean production system asks for a culture of change. It praises continuous improvement, and is based on a system permanently in movement. Change has o be quickly accepted and even desired. 11

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