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lean production techniques (Kaizen (seven kinds of waste (inventory,…
lean production techniques
Kaizen
Meaning
This means continuous improvement. It is an approach to production that aims to achieve change from a series of small steps.
seven kinds of waste
inventory
motion
unnecessary transportation
defects
overproduction
over-processing
waiting
important features
Small groups meet regularly to come up with solutions since they are the ones who closely know about the problems
The idea is to eliminate wastes such as time, piles of stock, unnecessary movement etc.
The improvement comes through the ideas of the workers themselves
The factory floor is reorganized by repositioning machines tightly together in cells in order to improve the flow of production through the factory
advantages
Workers operate in teams cheaper than investing in new resources and motivates
Uses business knowledge to improve production.
Work-in-progress reduced
Reduced amount of spaces needed
Improved layout of the factory floor may allow some jobs to be combined thus freeing the employees to carry out other jobs
Time taken to produce is reduced
disadvantages
Unwelcome pressure on staff to keep coming up with improvements
example
Toyota tries its best to reduce the waste and make the company become efficient. For example, it made it easier for employees to pick up tools by moving tool cabinet with them, reducing time and increasing efficiency. And every employee can make suggestions on how to improve the efficiency of the company
Just In Time
meaning
It means producing to order a business only makes an item when there is a customer for it
the success of JIT depends on
Good quality control procedures
Access to a supply of skilled workers
reliable suppliers
important features
Supplies arrive just as the time they are needed
Efficient system of ordering raw material/components is required
Production method that involves reducing or eliminating the need to hold stocks of raw materials or unsold stocks of the finished product
Reliable suppliers are required
Just-In-Time is usually implemented along with the introduction of cell production
disadvantages
Less time for quality control on arrival of materials
Danger of lost sales
Suppliers must be willing to participate Increase in order processing costs
May lose bulk-buying discounts
High dependency on suppliers to meet delivery and quality standards
Increased ordering and administration costs
Increase in suppliers’ transport costs
Increased chance of transport failures
Increased volume of traffic on road
advantages
The finished product is quickly sold so the money will come back immediately
Work-in-progress is reduced
Thus helping the cash flow
No extra stock is kept
It reduces the cost of holding stocks by the elimination of warehouse space
example
A company which produces car will not produces anythings without customer's order. When the customers have a order, their suppliers will send the raw materials to the company and they will produce the amount of production the customers need.