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 waste in a business sense.

• Wasted materials, wasted time, etc.

Lean Production

An approach to management that focuses on cutting waste, whilst

ensuring quality. This approach can be applied to all aspects of a

business – from design, through production to distribution.

Lean Production

Doing the simple things well..

Doing things better…

Involving employees in the continuous process of improvement

…and as a result, avoiding waste.

Why Cut Waste?

Waste=

Cost

The Waste Hierarchy

Waste ExamplesType of Waste Description

Over-Production Making more than is needed leading to excess stock levels.

Waiting Time Equipment and people standing idle, waiting for resources to produce.

Transport Moving resources unnecessarily.

Stocks Holding too much buffer stock costs money.

Motion Worker appears to be busy but is not adding any value.

Defects Output that does reach the required standard.

Effective Lean Production Requires..

• Good relationships with suppliers• Committed, skilled and motivated

employees• Culture of change • Trust between management and

employees

Time Based Management

A general approach that recognises the importance

of time and seeks to reduce the level of wasted

time in the production processes of a business.

Time Based Management• http://

www.youtube.com/watch?v=8PdmNbqtDdI&feature=related

• Frederick Taylor• Ford Factory

Time Based Management

- Quicker production- Can relate to performance pay to motivate- Faster product development- Reduction in waste- Greater efficiency

- May affect quality of products- May put too much pressure on staff- May demotivate if employees are overworked

Time Based Management

What does there need to exist in the business for

time based management to be successful?

Time Based Management Requirements

• Flexible production methods Able to change products quickly Can change production volume

• Trained employees Multi-skilled staff Trust between managers and

workers

Time Based Management Plenary

What does the success of implementing a Time Based Management system depend on?