Transcript Operational Strategies: Lean Production

Operational Strategies: Lean
Production
A2 Business Studies
Aims and Objectives
Aim:
• Understand time based management
Objectives:
• Define lean production
• Explain Time Based Management
• Analyse TBM
• Evaluate TBM
Starter
• Define TBM.
• Explain how TBM can reduce waste and
increase productivity.
• What doe the success of TBM depend on?
Simultaneous Engineering
An approach to project
management that helps firms
develop and launch products more
quickly. All parts of the project are
planned together. Everything is
considered simultaneously rather
than separately.
Simultaneous Engineering
• http://www.youtube.com/user/wsatkinsplc?v=TKohSqdmZK
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• Product teams are set up to include people in all areas that
are relevant to the new product – design, development,
production, marketing etc.
• Suppliers are involved in the new product development so
that potential delays in resourcing of raw materials,
components and services can be anticipated and avoided
• A teamwork approach is used, with all areas involved in the
project working on the project at the same time.
Simultaneous Engineering
- New product brought
to market quickly
- Firm may be able to
charge a premium price
to recoup R&D costs
- Greater sense of staff
involvement motivates
employees
- As all functions
involved in decision
making it can be long
- Time estimates can be
miscalculated resulting
in a time delay in the
projects completion
Cell Production
A form of team working
where production
processes are split into
cells. Each cell is
responsible for a complete
unit of work.
Cell Production
• 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
• 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
http://www.youtube.com/watch?v=fiS4_L5NU
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- Team working should
- Allocation of work to
improve communication cells has to be efficient.
- Workers become multi- - May not allow a firm to
skilled
use its machinery as
intensively as in flow
-Greater motivation
production.
from varying work
- Quality improvements
Cell Production Evaluation
What does the success of implementing
a cell production system depend on?
• Culture and ethos of the
business and the
relationship between
managers and workers!
Just In Time (JIT)
JIT aims to ensure that inputs
into the production process only
arrive when they are needed,
reducing stock holding costs and
waste.
JIT
• Aims to reduce waste by limiting stock
holding at each stage of production.
• Materials delivered as required.
• Time stock spends as work in progress or
finished is minimised.
• Resulting in a reduction in costs due to less
holding costs of materials or stock.
• http://www.youtube.com/watch?v=JTJLhW
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JIT
• Collective memory game.
• Advantages and disadvantages of JIT
production.
JIT
JIT Evaluation
What does the success of implementing
a JIT system depend on?
• Supply chain being efficient
• Deliveries being on time
• Efficient workforce