Understanding Lean Production: Just-in-Time Kaizen

WJEC BUSINESS STUDIES A LEVEL Issue 2 Sept 2012 Page 1
RESOURCES.
Understanding Lean Production

Lean production is a term that has come into  Time-based management methods.
widespread use within UK industry over the
last 15 years. The idea of Lean production,
encompasses theories of modern Japanese Just-in-Time Kaizen
industrial management, that are all designed to
achieve reduction and removal of waste within
a business.
Lean production methods teach us that waste

is any process that does not give ’value added’
to a product. So raw materials lying around
unused can be seen as waste. Work in progress
which is sitting in parts bins waiting to be used
in production, can be seen as waste. The
finished product sitting in a warehouse waiting
Cell Production Time based
to be delivered to customers is of an example management
of waste. Skills and knowledge of workers not
being used by management is an example of
waste. Lean production aims to remove all Just-in-Time
these elements of waste from the production
process. Perhaps the best known of the lean
production processes is just-in-time. Just-in-
Lean Production in Practice time (JIT) tries to ensure that parts, raw
For lean production to work there must be materials and components are received and
complete change of business approach, away products are made, only when there is
from the traditional hierarchical, function demand for the parts and demand for the
centred business – which is typical of many UK products.
businesses, to a more modern flexible, people
based structure. Also a number of complex In other words; - If it isn't wanted don't
systems must be adopted before effective order it, if it isn't sold don't make it.
lean production can take place.
Supplier relationships and stock holding.
The most important component parts of an Effective incorporation of just-in-time
effective Lean Production system are: systems requires that relationships with
suppliers are strong and communications
 Just-in-time—also see stock manage- systems are effective. There is no point in
ment notes reducing stock holdings if stock cannot be
 Kaizen—see kaizen notes topped up at the appropriate time. Suppliers
 Cell Production
Title Lean production Page 2
must be told when stock is needed and how will encourage the use of job enrichment There
much stock is required. will be more employee control over tasks. This
helps ensure employee commitment to the JIT
Some firms actually have bar codes on work- system .
in-progress, which are read as the product
moves along the production line. These bar It is always worth involving employees when
codes, when read, automatically order stock designing a just-in-time system, as employees
from suppliers at the appropriate time. Some often understand their part of the process of
car manufacturers use such sophisticated manufacturing better than management. Often
just-in-time systems, that suppliers can be when the commitment of employees has been
automatically notified when a car starts on gained, then the opportunity arises to move to
the production line, so that components, such different production structures such as cell
as seats, can be made and delivered to the production.
production line at exactly the right time.
Cell production
Cell production involves workers, working in
Kanban teams, or cells of production. In this type of
Another example of a just-in-time system is productive, or service situation, each cell has
the idea of Kan ban; this involves the use of one or more complete tasks to fulfil. For
order cards to ensure a regular and timely example, there is a shoe factory in North-
supply of components. It is not unusual when ampton that switched from line to cell produc-
using a Kanban system to find an employee of tion. In this case after reorganisation, cells of
the supplier continually production were created. These cells between
working on a shop floor, them completed the task of making a pair of
ensuring that the parts slippers. For the first time all the processes
It is always worth
arrived in the right place such as cutting, gluing, stitching packing, were
involving employees and the right time. brought together. Now full responsibility could
when designing a be passed to the cell, they were to check and
just-in-time system, I n v o l v e m e n t of maintain quality of output.
as employees often Employees
understand their This switch to cell working brought several
An important part of any immediate benefits:
part of the process
JIT system is a strong
of manufacturing
relationship with  reduction in work-in-progress
better than employees. There must  opportunity for job enrichment and
management be a people centred enlargement
approach from managers.  improvement in quality
Employees must be trained effectively to use  increase in worker knowledge and skills
the systems of lean production and
understand their role in ensuring system Customer Relationships.
continues to work. Cells of production are an In all JIT systems it is very important not to
important part of this process. Cell working forget the customer. Often customers are
Title Lean Production Page 3
able to use electronic point of sales systems

(EPOS), and these can be tied in with the
manufacturing process. Orders can be placed
electronically, so that finished product can
go straight from the production line to
delivery, rather than being stored in a
warehouse where storage can lead loss of
value.
Time Based Management

With time based management, emphasis is
placed on reducing time taken in all aspects
of the whole production process. It involves
concepts such as just-in-time, the use of
CAD (computer aided design) and CAM
( computer aided manufacture), critical path
analysis, and simultaneous engineering.
Simultaneous engineering.
This is an important concept. With
simultaneous engineering, emphasis is placed
on carrying out as near as possible at the
same time, the functions involved in
designing, producing and marketing the
product. Obviously it is impossible to
manufacture a product before it has been
designed, but it may be possible to get the
production lines ready, or to work out at
least the basics of a marketing plan. This
strategy can be effective in reducing the
time a product takes to reach the market,
and is of increasing importance as product
life cycles continue to shorten.
For simultaneous engineering to work, there

must be effective communication between
the functions or departments involved, and
also regular product meetings involving all
those taking part in the product development
– production – marketing chain.
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WJEC BUSINESS STUDIES A LEVEL Issue 2 Sept 2012 Page 1

Understanding Lean Production

Lean production methods teach us that waste

able to use electronic point of sales systems

Time Based Management

For simultaneous engineering to work, there

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