Lean Management

Last updated Dec 7, 2022 Edit

• Business

• Looks to reduce wasted time
• Faster development of new products
• Reduced lead times

Requires flexible, multi-skilled staff and the ability to change production at short notice.

Time-based management focuses on optimising the usage of time to the greatest extent possible.

• An element of time-based management, simultaneous engineering is a project management methodology. Instead of moving through the project in a linear way, all stages are handled simultaneously.
• Suppliers will be involved in the process as well, meaning that the final product can be produced much faster—and the time to market can be greatly reduced.

• Products are produced on demand rather than in advance.
• This process is much more vulnerable to supply chain disruptions.
• Costs are reduced, because less storage space and management of inventory is required.
• Lead times can be reduced, as products are not being produced in large batches or way in advance, so people could order products and have them in days rather than weeks or months.

• A typical flow production line is split into many units (or cells). Each cell is responsible for one element of the finished product
• Cells tend to be isolated away from the main company—potentially being able to manage hiring and holidays internally.
• Cells interact with other cells as customers, meaning quality is ensured within the production line.

KAIZEN => Continually removing waste from your system

KAIZEN is to continuously improve

• 7.30 - alarm

• 7.35 - get woken up by dad

• 7.45 - get woken up by dad

• 7.55 - get pulled out of bed by dad

• 8.00 - contemplate life

• 8.05 - breakfast

• 8.10 - get changed

• 8.15 - brush teeth

• 8.17 - standby mode

• 8.45 - leave for school

• Optimisations

  • ignore dad until shaken out of bed
  • wake up later to avoid standby mode

• Over-production
• Waiting time
• Transportation time
• Extra processing
• Excess motion
• Excess inventory
• Quality

Productivity = output per input

Efficiency = output for all inputs

Firms with a higher output per employee are more efficient, but they tend to gain a competitive advantage.

Quality of inputs in the production process can stop the line and lose the company money whilst out of action. Having the right number of staff at peak times will increase productivity overall, because stretched employees are demotivated by being overloaded. Investment in new technology; robots can work 24/7 without rest breaks and so will increase productivity levels dramatically.

Some of the ways in which you can increase labour productivity are:

• productivity bonuses
• productivity deal (for whole workforce)
• staff training
• investment in new machinery and equipment

Business