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Dalela R.K.

Production Methods & Kaizen

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Production Methods & Kaizen

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Production Methods

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EfficiencyAny production method relies on efficiency

this can be viewed in different ways:

Productivity a measurement of output perunit of the factor used (labour, capital or land)

Total Output

Productivity = -------------------

Units of Factor

Technical Efficiency output produced

using the fewest possible inputs Productive Efficiency output produced at

the lowest possible cost

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Efficiency

Production decisions involve

deciding methods for new

production runs and analysis of

existing methods.

Decisions may include:

Substitute machinery for labour?Use of new technology?

Organisation of the production

layout?

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Production Methods

Agriculture tends to bevery land intensive

efficiency could bemeasured in terms ofoutput per acre/hectare

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Production Methods

As technology andanalysis of productionmethodology has

improved, methodshave changeddramatically whatused to be labour

intensive productionmethods are nowcapital intensive

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Production Methods

The choice ofproduction methodand the factorinputs depends on

such things as: the nature of theproduct

factor costs

the scale ofproduction

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Production Decisions

Which method? Type of Product

One-Off Order?

Mass Market product?

Batch?

Market size andSegment

Factor Costs Land, Labour and

Capital

Complexity of design

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Production Methods

Job Production One-off production -each item might have particularspecifications

Flow Production

suitable for massmarket products that are identical

Batch Production each stage of theproduction process has an operationcompleted on it before moving on to thenext stage allows modifications to bemade to products that otherwise are thesame

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Production MethodsWhich is more efficient?

Operation 1 2 3 4 5

6

7

891011FinishedProduct

This?

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Production Methods

Operation 1

1a 1b 1c 1d

2a 2b 2c

3a 3b 3c 3d

4 Finishedproduct

Or this?

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Production Methods Production Methods

Finished Product

Cell 1 Cell 2 Cell 3

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Production Methods

Answer

it could be any of them!The design of the production space

can influence:

Output levelsFactor use

Efficiency

Cost levelsQuality assurance procedures

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Kaizen (Continuous Improvement)

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Kaizen (Continuous Improvement

Japanese concept

not maderedundant by the decline of theJapanese economy which maybe due to other institutionalfactors!

Focus on gradual andcontinuous improvement

A whole business philosophy

Importance of EVERYONE

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KaizenGreat attention paid to

customer requirements and

needsEfficient stock control

methods help reduce costs andimprove cash-flow

Flexible working practices andempowerment help increaseefficiency, reduce costs and improvemotivation

Leadership seen as vital. Ability tocommunicate a clear vision, takepeople along with the vision and tothink about where the company

needs to be in 5, 10, 15 and 20years time

Fundamental principles oftencharacterised as lean production

reducing waste, zero defects, highquality control measures at all stages

Punctuality in all aspects delivery, supply,

manufacture, etc.

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Quality Assurance Six Sigma MethodologyCoined by Motorola Engineer Bill Smith

Now a major influence on productionmethods and quality assurance

Data and statistical driven approach toeliminate defects in production

Aims to improve processes and reducevariations in quality

Necessitates organisational change, trainingand planning

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