Kaizen is a Japanese word that stands for “improving” or “making better” and refers to any kind of improvement no matter how insignificant it may seem: it concerns one-time and continuous changes, small- and large-scale ones. The approach was chosen as it simultaneously improves all aspects of the production (including supply chain management) and involves all people working for the company from assembly line workers to the CEO. The approach is universal and can be successfully used in a number of different fields (automobile industry, health care, banking, etc.). In Japanese, Kaizen mostly refers to industrial and business organizations (as it was first practiced by Japanese businesses in the post-war period and later heavily promoted by Toyota), whereas in English, the word is not associated with any particular sphere but usually signifies continuous improvement. There are two major types of Kaizen that differ mainly in the scope of their implementation: flow Continue reading
Operations Management
Methods of Production – Job, Batch and Flow Methods
Production and operation management has become an essential part of manufacturing organizations. These organizations always experience pressure in all divisions and units. Pressures are in terms of orders to be completed on due dates, breakdown of machines, absence of employees, lateness on delivery of materials, and industrial actions by employees to improve working conditions. To meet these challengers, firms usually rely on an effective methods of production and operation methods. A manufacturing organization may use different methods of production such as use job, batch or flow production depending on a number of factors. However, it is important to have a clear distinction between these three methods of production to know where each one is applicable. Whatever methods of production is used, the objective is to produce goods and services which is highly profitable and to use the most effective and efficient method. Considerations should also be made to other aspects Continue reading
Three Key Elements of Six Sigma Process
Six Sigma is a widely used Operational Approach towards Operations Management and is frequently applied within Manufacturing Businesses, however the fundamental processes also apply within businesses operating within the Service Industry. The Purpose of Six Sigma is to reduce process variation so that virtually all the products or services provided meet or exceed customer expectations. Six Sigma adopts a very data driven, disciplined method for eliminating defects within processes and promoting business improvement within organisations. Six Sigma is able to show quantitatively how a process is performing and to achieve ‘Six Sigma Status’, a process must not produce more than 3.4 defects per million opportunities. Six Sigma is dissected into three core elements including: Process Improvement, Process Design/Re-Design & Process Management and will be explored below. 1. Process Improvement The Process Improvement aspect of the Six Sigma Model addresses the concept of improving existing processes with the ultimate objective of Continue reading
Steps in Production Planning and Control
Production planning and control is one of the most important phases of production management, it is, as a matter of fact, the nervous system of a manufacturing organization. In manufacturing organization, it is essential that production is carried on in the best manner at the lowest cost, and the goods are of right quality and are produced at the proper time. This can be ensured only through proper planning of production. but mere planning of production will not solve the problem because production plans are not capable of self-actuating and do not lead to automatic accomplishment. For that the production manager has to take certain steps like, he has to regulate work assignment, review the work progress, and devise methods to bring conformity between the actual performance and planned performance — so that plans chalked out are adhered to and the standards set at the planning stage are properly attained Continue reading
Meaning of Value Analysis
The purchasing manager conducts value analysis that aims mainly at achieving cost effectiveness and maintaining the required level of quality. Value analysis is an organized effort that studies in detail the ‘value’ of material. Value Analysis reviews the design changes with the objective of eliminating high cost materials and the materials that are technically obsolete and reducing the number of parts. After analyzing the functions and cost of material, the purchasing manager evaluates the possibilities of using the material. Value Analysis can be defined as a process of systematic review that is applied to existing product designs in order to compare the function of the product required by a customer to meet their requirements at the lowest cost consistent with the specified performance and reliability needed. The Value Analysis technique was developed after the Second World War in America at General Electric during the late 1940s. Because of World War, Continue reading
Lean Manufacturing – Definition, History, Objectives, and Examples
Lean manufacturing is the production of goods using less of everything compared to mass production. It focuses on less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. Lean manufacturing is a generic process management philosophy derived mostly from the Toyota Production System (TPS). Lean manufacturing is a technique that allows companies to be more responsive to quickly changing markets and more sophisticated & demanding customers. History of Lean Manufacturing Toyota is often considered one of the most efficient manufacturing companies in the world and the company that sets the standard for best practices in Lean Manufacturing. Lean Manufacturing has increasingly been applied by leading manufacturing companies throughout the world, lead by the major automobile manufactures and their equipment suppliers. Lean Manufacturing is becoming an increasingly important topic for manufacturing companies in developed countries as they try to find ways to Continue reading