What is Kaizen? Japan’s management philosophy has introduced a new creative strategy for competitive success in business, or the so-called “Kaizen” model. The term Kaizen began to receive attention from management experts and scholars around the world when Masaaki Imai published his first book in 1986, “The Key to Japan’s Competitive Success”. Kaizen is a Japanese word with literally mean improvement, taken from words ‘Kai’, which means continuous and ‘zen’ which means improvement. Some translate ‘Kai’ to mean change and ‘zen’ to mean good, or for the better. In the context of Lean manufacturing, kaizen is understood to signify small, incremental, and frequent improvements to a process. Lean philosophy states that the large improvement which just require small amounts of investment and risk. The kaizen main mindset is making process improvements without adding people and space to the process. The more important one is implement the change without spending the Continue reading
Production 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
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
Purchasing Policy – Principles and Implementation
Purchasing Policy Principles The major principles on which purchasing policies should be based are a sound orientation, reflect a cross —functional approach and be directed at improving the company’s bottom line. i. Business Orientation Developing a purchasing and supply strategy requires a thorough understanding of the company’s business policies. The following questions are important to determine how purchasing and supply strategies will need to support the company in meeting its goals and objectives:- What end-user market is the company targeting and what are the major developments going on in those markets? What competition is the company suffering from and what leeway does the company has in setting its own pricing policies? To what extent can material’s price increases can be passed onto the last customer or is it impossible? What changes are happening in the company’s product, production and information technologies? What investments will be made by the company in Continue reading