P58 - 2

Flexibility
Reduced idle time
Reduced WIP
Dedicated cell production Reduced unnecessary tasks
Benefits
Reduction in losses & Rets
Rapid response to change
Better staff motivation
Reduced staff T/O

P61 - 3
JIT Purchasing
Machine Cells
Set up time reduction
Approach Uniform loading
Kanban Pull system
JIT Total Quality
Employee involvement

Value adding V NVA

Difficult to predict demand
What if suppliers fail
Problems
Wider geographical spread of manufacturing
Premium price of supplies

P64 - 4
Right first time
Continuous improvement
Matters to the customer
Customer supplier relationship
Prevention rather than cure
Operatives personally responsible
Requirements of quality
Any level of defects unacceptable
Right first time applies to all departments
Introduce a quality certification programme
Emphasise cost of poor QC
1. World class manufacturing
Positive motivation
Cultural orientation
Change attitudes Workers decide how to work
Empowerment
4. Modern Developments 2 Responsibility to achieve targets
TQM
05/10/2004 - v8
Quality circles
Improved quality of O/P
Benefits Improved productivity
Job satisfaction & commitment
Costs & Benefits
Time to learn
Costs Training costs
Cost of mistakes while learning

Reduce no of parts
CAD Use parts used by other products
Improve physical charactaristics
Design for quality
Production engineering
Admin
Info systems
Distribution

P69 - KEY TERM

OPPOSITE TO THE COST + MODEL
REDUCE NO OF COMPONENTS
USE STANDARD COMPONENTS
Target costing DEALS WITH ATTAINABLE PRICE AND TRAIN STAFF
WORKS BACKWARDS TECHNOLOGY
CUT NVA ACTIVITIES
USE DIFFERENT MATERIALS
USE CHEAPER STAFF

BPR HOW IT CAN REMOVE NVA

HOW COSTS CAN BE CALCULATED IN A
Activity Based Approaches MORE MEANINGFUL WAY
ACTIVIT BASED
COST DRIVERS
P71 - KEY TERMS

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