5.3+Lean+Production

UNIT 5.3 LEAN PRODUCTION



Lean Production is an __approach__ to operations management that focuses on reducing ALL types of waste, in an attempt to **increase efficiency**. ___

IB students are expected to know .... ___
 * the key 2 components of Lean Production ie (i) less waste and (ii) greater efficiency,
 * the 4 key lean strategies of (i) Kaizen (ii) Just in time (iii) Kanban (iv) Andon
 * the basic features of C2C design & manufacturing
 * how to compare and contrast quality control v quality assurance
 * the 3 main methods of managing quality ie (i) quality circles (ii) benchmarking (iii) TQM
 * The impact of Lean Production & TQM on a firm
 * the importance of national and international quality standards.

A typical answer an Efficiency Consultant might give to being asked : "How can i make my production process more lean?" - would NOT be : //implement strategy X, or strategy Y,// but rather "//let me visit your firm to see where the waste is in your firm//.". The point being that Lean Production in reality covers an endless amount of possible strategies : basically anything that cuts any kind of waste, to any extent. The IB syllabus of course has chose a few widely-used Lean strategies and expects you to get familiar with them. More on that later.



So what are the typical categories in which waste can occur...

//[see this presentation for a detailed(ish) explanation of each waste area]//

As a list, the usual areas of waste are .. __
 * time
 * products
 * raw materials
 * space
 * stock
 * energy
 * talents
 * ideas
 * money : //be careful of using this an en example of waste, as indirectly all the above are a waste of money in their own way//

So we said that any strategy that eliminates any waste to any extent is part of a Lean System, but here are the key strategies that the IB want you to be aware of.. **[1] KAIZEN**

As the image suggests this concept was devised in Japan - by Toyota actually. At its core is the idea that a firm should be **continuously** looking for opportunities to improve. Big opportunities, small opportunities, in raw materials, in process, in whatever ; everybody continuously look for ways to cut waste wherever it might be found. //I guess the alternative is to have a specific Department, a Research & Development Dept maybe, that is responsible for innovation and improvement. Such Departments might focus on major game-changing strategies and only implement these occasionally.//

//This concept can be explained visually in the graph below.// So 'Kaizen' is a philosophy that encourages a whole range of strategies, rather than a strategy in itself.

A weakness with Kaizen is that it (a bit like TQM ) it requires the full commitment of ALL workers in order to be fully effective. Not many firms are able to get this full commitment.

This is covered in more detail in Unit 5.5. In this context we can say that **Just-in-Time reduces waste**. - and possibly others but 3 is enough to give you an idea.
 * [2] JUST IN TIME **
 * Waste of __space__ : as in unnecessarily storing your product, when they could be either in your suppliers storage, or in the possession of your consumer. Storage space could be used more efficiently
 * Waste of __products__ : the more products you store the higher chances of them 'going to waste' via deterioration, theft, breakages etc
 * Waste of __money__ : in storage costs, particularly if you are renting. You may be renting an unnecessarily large location, because you are storing too much.


 * [3] KANBAN **



Kanban can be quite an open idea. Its a billboard. At the heart of the billboards use is its high visibility. A small Kanban, tucked away in some dark corner of the operating floor, is of no use. Its like Andon (see below) in that sense. Visibility and communications.

What goes on the 'billboard' depends on the firm and the project. I have seen a lot of kanbans that only have 4 columns. The example above has 7 because those 7 columns //are useful to __that__ firm//. Most kanban billboards will begin with some version of 'pending' column and finish with some type of 'completed' column.

Most kanbans will operate via the use of 'storycards' : again in the image above we see pink, yellow and green storycards though they appear blank. Perhaps the colour is the story : Green are for Marketing, Yellow are for Finance?

Typical details you will find on a storycard could include etc But the exact nature of what goes on the storycard depends on //what is useful for __that__ firm//.
 * start date
 * end date
 * who is responsible for completion
 * what department is it connected to
 * weight
 * special considerations like (not to be mixed with nitrogen! etc)

A good kanban system should... If these basic rules are followed, then the billboard will help the firm make decisions about priorities, keep track of progress and generally measure performance: all leading to greater efficiency.
 * be highly visible
 * contain meaningful information on each storycard
 * be kept up-to-date at all times

A kanban system, right here at the ABC (this photo was taken inside the ABC ICT Office, in May 2017)

Andon is essentially a communication system. If we believe in the concept that "the first step to solving a problem is identifying it", then Andons use lies in the fact that it identifies problem and communicates them to those that need to know. The sooner the problem-solvers know about the problems the sooner they can get about fixing it! That's Andon value : communicating the existence of a problem.
 * [4] ANDON **

It typically communicates via lights and sounds (though in some workplaces sound is ineffective, as factories for example tend to be very noisy already).

How much information about the problem an Andon system communicates depends on the Andon-programmer but as a minimum most systems tend to communicate
 * that the problem exists
 * where the problem is

__**Limitations**__ : it must be designed to allow the problem-solver to receive the message. Eg if a light flashes but the light is not very visible then the system doesn't communicate the problem very well etc. It must work within a framework of understanding, so maybe training is needed. Eg It must be clear //who// needs to react to the problem, and preferably //how// they need to react etc,

//Andon is another efficiency strategy to come out of Toyota.//

a few examples from around the school that i could find of Kaizen in effect. _

=CRADLE TO CRADLE (C2C)=

Before we look at what C2C is, perhaps it useful to look at the term it is a reference to : C2G (Cradle to Grave)

So Cradle to Cradle is the process of implementing systems which allows a firm to use (some of its) inputs in such a way that it is possible to track them from the moment they enter the firm, get processed to make the output, the output gets used, gets broken down into its original form, and reenter the firm as original inputs. "cradle"represent the input in their early life, unprocessed and just entering the firm : cradle to cradle.

Wikipedia has this definition - which makes nice reference to a certain phrase :-) "Put simply, Cradle-to-Cradle is a holistic economic, industrial and social framework that seeks to create systems that are not only efficient but also essentially waste free."

C2C, in terms of an idea being adopted on a large scale by major corporations, is still in its infancy despite having first been talked about in the 1970s by Walter (see below). . The idea itself is still in its cradle :-)

If you as a firm can re-use your same inputs over and over again ?! : that's very lean!

DISADVANTAGES :
 * requires expertise, facilities and time that many firms don't have,
 * costly to implement in the short term, to due implementations costs
 * requires a change in attitude of ALL those involved in your supply chain : customers included.

Currently the Cradle to Cradle concept is being promoted by a specific NGO, using the same name. If a firm believes it is implementing the C2C principles then it will invite the NGO in for an inspection/audit. After the audit, if the NGO agrees that these principles are being adopted it will give them the C2C badge. In some countries, with some customers, a product with the C2C badge is very desirable and they will pay a premium price for it.

Generally there are two routes via which an input can be used,broken down and returned to its original state : (i) the Biological Process and (ii) the Technical Process. Here is Puma explaining how they use both of them... []

Remember the syllabus just wants you to know ... and remember we are looking C2C from a Business Management point of view - not a scientific one : the C2C system leads to less waste! ___ =QUALITY CONTROL v QUALITY ASSURANCE=
 * the basic features of C2C design & manufacturing

Both these approaches have the same goal : quality for the customer! //but how they go about achieving this goal is slightly different.//

//Here is how wikipedia defines the two terms// Do the highlighted parts clarify the difference? Here is a comparison table that might help



Quality Assurance doesn't have a 'main' activity, it has a whole range of activities throughout the entire process.. For Dr Ortford (see cartoon above) Quality Assurance would extend to good parking facilities, friendly receptionist, good air conditioning in the waiting area, best supplies, a careful after-appointment service, helpful advice on dental care to patients, a convenient method for customers to pay their bills, etc etc. Quality assured at every stage of the service.

NUMERICALLY PUT : A firm adopting __**Quality Control**__ might be happy with their quality if, when they tested at the end of the process they only found a 2% rejection rate. They will feel the processes are good, and that they find the few faulty products that exist and remove them - so all the products that go out to the customers are 100% quality. Detecting a quality problem? : this will be in the form of identifying a faulty product, and that product will be __ discarded __. if the number of faulty products gets too high then the entire production process will be examined. A firm adopting Quality Assurance might be happy with their quality when they have zero defects, this would be evaluated by a series of different tests at different points : zero defects in the storage area, zero defects in the assembly area, zero defects etc etc. They are measures taken to Detecting a quality problem : the processes within the area where the problem was found will be examined and corrected. .

- and finally an analysis of the two methods.


 * made-and-then...

In case you are wondering it is possible to implement both, though once quality assurance is __fully effective__, quality control becomes redundant.

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