Companies aim to improve their productivity and increase their profitability. Consequently, many firms adopt effective strategies and business models that enhance their operations. Lean Thinking and Just-In-Time (JIT) models help maximize their efficiency and viability. Lean thinking involves a transformational framework that organizes human activities to deliver value to human beings while eliminating waste. Meanwhile, JIT is an inventory model that allows goods to be received from suppliers only as they are needed. The rationale for companies adopting JIT is to reduce inventory holding costs and increase inventory turnovers. Therefore, Lean thinking and JIT are significant among businesses since they help reduce costs and promote business productivity. The lean thinking framework has been adopted by many companies and has proved successful in various industrial dimensions. James Womack and Daniels Jones first used the term. The concept integrates five principles that contribute to its success: value, value stream, flow, pull, and Continue reading
Operations Management Concepts
KAIZEN Philosophy – A Way to Continuous Improvement
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
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
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
Objectives of Material Handling
Materials handling may be defined as the art and science of movement, handling and storage of materials during different stages of manufacturing considered as material flow into, through and away from the plant. It is in fact, the technique of getting the right goods safely, to the right place, at the right time and at the right cost. All tangible and intangible benefits can be reduced to four major objectives. The application of material handling methods and equipment to be of greatest benefits should be governed by the following: 1) Reduced Costs: Cost-Reduction programs have two broad goals; either to reduce the cost of Material Handling or to reduce total production cost; by improved handling procedures. The latter concept net reduction in total manufacturing costs. The Ways in which cost reductions are realized through improved material handling are; Reducing material handling labour. Reducing the Material handling work done by direct Continue reading