3. Lean Production
Is an integrated approach to design, technology,
components, material and new culture for the firm.
Techniques include Just in time, time based
management and cell production
5. Types of Waste
Over Production
Waiting Time-Lead Time
Transportation
Process methods
Inventory
Motion/movement
Defective Products
6. Traditional VS Lean Production
Traditional Production Lean Production
Division of labor
Barriers in mobility
Just in case-avoid stock out
Large batch size
Distant relation with partners
Large n few deliveries
Inspect out defective goods
Large n frequent improvement
Standardized product
Buffer everywhere
Downward communication
Limited consultation
Team production
Flexible workforce
Just in time
Small batch
Partnership/collaboration
Many/small deliveries
Build in quality
Continuous improvement
Product variety
No safety net
Multiple communication
Extensive consultation
7. Just in Time (JIT)
An inventory strategy companies employ to increase
efficiency and decrease waste by receiving goods only
as they are needed in the production process, thereby
reducing inventory costs.
Just-in-time (JIT) manufacturing is a production
model in which items are created to meet demand, not
created in surplus or in advance of need. The purpose
of JIT production is to avoid the waste associated with
overproduction, waiting and excess inventory
8. Requirements For JIT
Employees flexibility and commitment
Total quality or zero defects
Preventive maintenance
Cell production
Continuous improvement
Elimination of bottle necks
9. Just in Time
Advantages Disadvantages
Right quantity at right time
Higher quality
Improve customer service
Minimal inventory n waste
Reduced space requirements
Reduced lead time
Increase equipment utilization
Simplicity
More workforce participation
Continuous improvement
Better problem solving
Reduce costs
Requires high degree of
delegation
Requires change in philosophy n
culture
Advantages of bulk buying lost
Vulnerability in breakdown
Work only in regular products
Requires highly reliable n
flexible suppliers
Requires a super coordination
between workforce and
managers
10. Conventional Vs JIT Purchasing
Conventional Purchasing JIT Purchasing
Large n frequent deliveries
Deliveries according to buyer’s
date
Multiple sourcing
Parts inventory maintained
Short term purchasing
agreements
Products with few constraints
Minimal exchange of info with
partners
Prices are established by suppliers
Supplier’s location not important
Small lot on immediate
requirement base.
Frequent deliveries
Few suppliers
Little inventory maintained
Long term purchasing
agreements
Specialized products
Extensive exchange of
information
Collaboration with suppliers
Suppliers’ location important
11. Cell working
In a manufacturing facility, the machines involved in
the production process would be arranged so that the
goods being produced move smoothly and seamlessly
from one stage to the next.
This would only be possible if the machines are
grouped in work cells that facilitate the logical
progression of the goods being produced, from raw
materials at one end to finished product at the other.
Similarly, in the office context, work cells may facilitate
better flow of communication and more efficient use
of shared resources.
12. Cell Working
Cell production has the flow production line split into
a number of self-contained units. Each team or ‘cell’ is
responsible for a significant part of the finished article
and, rather than each person only carrying out only
one very specific task, team members are skilled at a
number of roles, so it provides a means for job
rotation.
Cell production is a form of team working and helps
ensure worker commitment, as each cell is responsible
for a complete unit of work, which Herzberg would
view as part of job enrichment.
13. Cell working
Benefits Down Sides
Closeness of cell members should
improve communication, avoiding
confusion arising from
misunderstood or non-received
messages
Workers become multi-skilled
and more adaptable to the future
needs of a business
Greater worker motivation,
arising from variety of work, team
working and more responsibility
Quality improvements as each cell
has ‘ownership’ for quality on its
area
The company culture has to encourage trust
and participation, or workers can feel that
they are being constantly pushed for more
and more output with no respite
The company may have to invest in new
materials handling and ordering systems
suitable for cell production
Cell production may not allow a firm to use
its machinery as intensively as in
traditional flow production
Some small scale production lines may not
yield enough savings to make a switch cell
production economically worthwhile
The allocation of work to cells has to be
efficient so that they have enough work, but
not so much that they are unable to cope
Recruitment and training of staff must
support this approach to production
14. Kaizen (Continuous Improvement)
Is customer –focused , in it quality begins with
customers-as customers view are continually changing
and standards rising, so continuous improvement is
required.
It involves small, gradual but continuous changes.
Gains are small in the short run but are substantial
over the longer period.
Starts with defining area of improvement, is followed
by analysis of the causes of problems.
19. Fishbone Diagram
also called a cause and effect diagram or Ishikawa
diagram, is a visualization tool for categorizing the
potential causes of a problem in order to identify its
root causes.
Focus on causes not symptoms
Capturing the collective knowledge and experience of
a group
Providing a picture of why an effect is happening
Establishing a basis for further data gathering and
action
20. Quality Circles (QC)
it is a work group of employees who meet regularly to discuss their
quality problems, investigate causes, recommend solutions, and take
corrective actions. Generally, QC is a small group of employees
belonging to the same similar work area. Typically features include:
Voluntary member ship
From single department
Doing similar work
Free to select issues wish to tackle
Receive training
Short and frequent meetings
Facilitator available
Solution in term of cost effectiveness
Findings to management
Implement and monitor solution that have been agreed
21. Requirements of QC
Commitment and support of top mgt.
Full consultation of staff
A participative approach
Decision-making delegation
Trust and goodwill
Effective support structure
Trade union/staff support
Training programs
Continuous monitoring
22. Benefits of QC
Increased productivity
Increased quality
Improve motivation and morale
Job enrichment
Greater awareness of problems
23. Time-Based Competition (TBC)
TBC is based on the proposition that the time it takes to get
product from conception to the consumer and provide goods and
services to market can be the key to competitive advantage; By
Preparation
Administration
Reducing waiting time
No unnecessary movement
No overproduction
No rejects
No set up time
No process waste
No untidiness
No bottleneck
24. Benefits of TBC
Speeding up new product development, firms can
achieve a competitive advantage
Speeding up the production process leads to saving in
stocks and working capital
Firms can behave opportunistically as new product
ideas emerge and as new market segments appear
It can increase customer satisfaction
It leads to greater flexibility
