Business Introduction To Jit And Lean Thinking Notes
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LECTURE 4 - INTRODUCTION TO JIT & LEAN THINKING Scientific management Principle is that decisions about organisations should be based around 'scientific' tudy of the situation to determine the most efficient way of doing a job. So procedures are STANDARDISED and combined with WAGE INCENTIVES for increased output. View: work is entirely money motivated? So increasing productivity in exchange for more money should please workers and owners. BUT overlooks how employees develop identity so may not want to be treated as a living machine (performing repetitive, standardised tasks sacrificing knowledge, skill and pride in work). Different contexts for each situation need to be considered. Lean manufacturing Aims to CUT WASTE and IMPROVE QUALITY with highly trained employees, a serious approach to detail, incorporating technology solutions with people at the heart of the process. Pioneered by Toyota, using JIT, continuous flow production, quick changeover of assembly lines etc. management system also encourages employee involvement and problem solving. Combines advantages of some other methods whilst avoiding the disadvantages (high costs of crafts, rigidity of mass production)of others. LEAN PRINCIPLES
1. Specifies what does/n't create value for customers, firms, functions and departments.
2. Identifies steps needed for design, order and produce the product across the whole values stream to highlight non-value adding waste.
3. Remove interruption, backflows, waiting and scrap from actions that create value.
4. Only make what is demanded by the consumer
5. Strive for perfection - continually removing layers of waste as they are uncovered. 7 WASTES
7 WAS TES The University of Birmingham
Producing too much or too soon, resulting in poor flow of
information or goods and excess inventory
Frequent errors in paperwork, product quality problems, or
poor delivery performance
Excessive storage and delay of information or products,
resulting in excessive cost and poor customer service
Going about work processes using the wrong set of tools,
procedures or systems, often when a simpler approach may
be more effective
Excessive movement of people, information of goods,
TRANSPORTATI O resulting in wasted time, effort and cost N
Long periods of inactivity for people, information or goods,
resulting in poor flow and long lead times
Poor workplace organisation, resulting in poor ergonomics,
excessive bending or stretching and frequently lost items
S higeo S hingo, T oyota Production S ystem
The Birmingham Busin ess School
Other methods of production CRAFT PRODUCTION Highly skilled workers, simple (but flexible) tools, items for exact customer satisfactions, one item at a time. EXPENSIVE, used today for high end furniture, art, luxury sports cars. MASS PRODUCTION
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