2.3.3 Efficiency and competitiveness using lean production

Question 1

define efficiency

Answer 1

means organising production so that waste is minimised and costs are the lowest possible.

Question 2

what’s lean production?

Answer 2

a general term given to any system of production that tries to minimise waste and cut costs at every stage of production and distribution

Question 3

what is Just-in-time

Answer 3

a way of managing stocks where it is ordered in just as it is needed

Question 4

what is Kaizen

Answer 4

continuous improvement

Question 5

what is TQM

Answer 5

total quality management a philosophy where everyone in a business is responsible for ensuring quality of products are up to standard.

Question 6

what is cell production

Answer 6

a method of production where workers are set into teams and each team focuses on an individual task

Question 7

what job enrichment and empowerment?

Answer 7

giving everyone more responsibility to improve productivity, motivation and job satisfaction

Question 8

what is time based management

Answer 8

Careful sequencing of tasks to reduce delays

Question 9

what is quality control

Answer 9

refers to the traditional method of checking that products are of an adequate standard

Question 10

what is quality assurance

Answer 10

means ensuring that quality standards are agreed and met throughout the organisation

Question 11

what is TQM?

Answer 11

employees are also involved in quality control and take responsibility for the quality of their and their teams work. This not only helps reduce costly wastage but also reinforces employee motivation.

Question 12

benefits of TQM

Answer 12

improved products and services
reduced costs
increased customer satisfaction
repeat purchases and brand loyalty
improved profitability
competitive advantage
motivated workforce

Question 13

drawbacks of TQM

Answer 13

implementation costs
takes time to set up
retraining of employees
increased pressure on management
may be difficult to involve staff
does not suit all businesses

Question 14

define Kaizen

Answer 14

the Japanese work for continuous improvement. It summarises a whole company approach to quality and cost control. Everyone is involved in the search for improvements to both the products and the process of production, it requires good teamwork.

Question 15

what is just-in-time

Answer 15

stock control system where stock is ordered in as it is needed

Question 15

pros of JIT

Answer 15

• reduces costs in terms of buffer stocks and handling
• less need for storage space, this can be converted to production
• if there is a break in supply production
• greater flexibility in responding to changes in demand

Question 16

cons of JIT

Answer 16

• will not benefit from reduced unit costs for bulk purchases
• if there is a break in supply production will be lost.
• heavy reliance on reliability of supplier

Question 17

how can a business gain a competitive advantage from lean production

Answer 17

lower costs than competitors = higher profit giving that business an edge over rivals

Question 18

pros of lean production

Answer 18

reduce wastage related costs
reduces costs of storage and handling
improves quality
fewer reject costs
customers more satisfied with quality
greater flexibility
shorter lead times
more motivated staff, less staff turnover
no waste caused by unsold output

Question 19

cons of lean production

Answer 19

does not suit all production processes
- failure by one small supplier may halt entire production process
- some employees may not want more responsibility
- managers may not be flexible enough
- may not be able to meet unexpected orders.