###Production Methods & Kaizen - PowerPoint Presentation - Full version###Efficiency
Any production method relies on efficiency – this can be viewed in different ways:
Productivity – a measurement of output per unit of the factor used (labour, capital or land)
Total Output
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Production decisions involve deciding methods for new production runs and analysis of existing methods.
Decisions may include:
Change of production method?
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Whilst all output can be classed as production, different production methods may be more appropriate for different products or services.
Agriculture tends to be very land intensive – efficiency could be measured in terms of output per acre/hectare
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Production Methods
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As technology and analysis of production methodology has improved, methods have changed dramatically – what used to be labour intensive production methods are now capital intensive
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Textile factory
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Bottle production line
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The choice of production method and the factor inputs depends on such things as:
the nature of the product
factor costs
Job Production – One-off production - each item might have particular specifications
Flow Production – suitable for mass market products that are identical
Batch Production – each stage of the production process has an operation completed on it before moving on to the next stage – allows modifications to be made to products that otherwise are the same
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The design of the production space can influence:
Output levels
Factor use
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Kaizen (Continuous Improvement)
Japanese concept – not made redundant by the decline of the Japanese economy which may be due to other institutional factors!
Focus on gradual and continuous improvement
A whole business philosophy
Importance of EVERYONE buying into the concept and the vision
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Efficient stock control methods help reduce costs and improve cash-flow
Flexible working practices and empowerment – help increase efficiency, reduce costs and improve motivation
Leadership seen as vital. Ability to communicate a clear vision, take people along with the vision and to think about where the company needs to be in 5, 10, 15 and 20 years time
Fundamental principles – often characterised as ‘lean production’ – reducing waste, zero defects, high quality control measures at all stages
Punctuality in all aspects – delivery, supply, manufacture, etc.
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Now a major influence on production methods and quality assurance
Data and statistical driven approach to eliminate defects in production
Aims to improve processes and reduce variations in quality
Necessitates organisational change, training and planning