what is meant by efficiency
means organising production so that waste is minimised and costs are lowest possible
what is lean production
any system of production that tries to minimise waste and cut costs at every stage of production and distribution
what is quality control
refers to the traditional method of checking that products are of an adequate standard
inspection takes place at the end of production
drawback of quality control
doesn’t identify the cause of the defect or find every faulty product
it’s expensive bcs of wastage
does not add value
what is quality assurance
means ensuring that quality standards are agreed and met throughout the organisation
much more thorough
involves working together and improving quality and reliability at each stage
what is total quality management TQM
employees are all involved in quality control and take responsibility for the quality of their and their teams work
not only helps reduce wastage but also reinforces employee motivation
each department focuses on the needs of the next department in line and strives to improve quality
for TQM to work want components need to be in place
committed leadership
employee empowerment, all must be involved
increased training
closer relationships with customers to meet needs
closer relationship with suppliers to raise quality
benefits of TQM
improved products and services
reduced costs
increased customer satisfaction
improved profitability
repeat purchases and brand loyalty
motivated workforce
competitive advantage
drawbacks of TQM
implementation of costs
takes time to set up
retraining of employees
increased pressure on management
may be difficult to involve staff
doesn’t suit all businesses
what is kaizen
it’s the japanese word for continuous improvement
everyone is involved in the search for improvement go both the product and the process of production
requires good teamwork
what does kaizen involve
everyone in the business takes it upon themselves to monitor and improve quality
improvements are small and may seem pointless but spread throughout the business
customers benefit from a better quality product
what is just in time
stock control system that doesn’t hold large qualities of stock or raw materials
small deliveries only when needed
involves having close relationships with suppliers to ensure supplies arrive in time
lower average cost which increases competitiveness
advantages of JIT
less need for storage space, lower fixed costs
greater flexibility responding to changes in demand
reduced costs in terms of buffer stock and handling
disadvantages of JIT
will not benefit from reduced unit costs for bulk buying
if there’s a break in supply, production will be lost
heavy reliance on supplier delivering on time
advantages of JIT
less need for storage space, lower fixed costs
greater flexibility responding to changes in demand
reduced costs in terms of buffer stock and handling
competitive advantage from lean production
improved quality means that more customers will be satisfied
reduced production costs lead to the possibility of reduced prices or increased profit margins
ensures that business isn’t left with any unwanted stock which can reduce costs
advantages of lean production
reduces wastage
reduces cost of storage
improves quality
customers more satisfied with quality
greater flexibility
shorter lead times
more motivated staff, less labour turnover
disadvantages of lean production
does not suit all production processes
if one supplier fails can pause the whole production process
some employees may not want more responsibility
may not be able to meet unexpected orders
disadvantages of lean production
does not suit all production processes
if one supplier fails can pause the whole production process
some employees may not want more responsibility
may not be able to meet unexpected orders