Lean Production and Quality

Management
CH.23
Importance of quality
• Quality is defined by ISO 8402-94 as the set of characteristics of an
entity that gives that entity the ability to satisfy express and implicit
needs.
• General speaking quality measures the degree to which a product
meets or exceeds the desire of the consumer.
• Quality is normally measured in terms of performance, reliability and
durability.
Dimensions of quality
• The concept was developed by David A Gavin, a professor at Harvard
Business school, in the late 1980s. He proposed that there were eight
distinctive dimensions of quality.
Dimensions of quality
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Anesthetics – look, feel, sound, taste etc.
• Perceived quality
Techniques for improving quality
Quality control and quality assurance
Quality control- is the process of ensuring that the product meets its
established quality standards. This means objectivce of quality is
control is to ensure that products being produced and sold are free of
defects.
Zero defects- this concept involves the production of products that are
free of faults and which adhere to the standards.
Quality Assurance
• Quality Assurance is a guarantee to maintain an agreed or established
set of quality standards. In doing this, the firm’s suppliers must also
be involved, since poor quality raw materials lead to poor product.
 Quality Standards

These are standards that are established by independent organizations

to ensure that the information interests of consumers are protected.
Example: The bureau of Standards in Jamaica.
 Benchmarking
Benchmarking is another method for improving quality. It is the process
whereby a firm identifies the best practice of another firm then
Implements them to improve its own product.
Objectives of firm using Benchmarking
• Improving delivery time and frequency
• Proper waste management and disposal
• Inventory control management
• cost reduction
The main steps involved benchmarking
• Identify the area for improvement

• Choose the right company

• Gather information

• Analyze the information gathered

• Implement and evaluate the findings.

Benefits of using Benchmarking
• Can improve the competitiveness of the firm both locally and
internationally

• Gives the firm a better understanding of its consumers and how to

keep then satisfied.

• Proper implementation will help to reduce waste and improve

productivity
Limitations of benchmarking
• Needs qualified experts to make comparisons that will be
meaningful. This can be a very costly exercise.

• Implementing new policies within the company could be stalled by

resistance to change and the necessary resources.
 Outsourcing
This refers to the process whereby firms subcontract some of there
operations to independent suppliers of services. When a firm
outsources these operations to concentrate resources on its core
product.
Benefits of outsourcing
• The firm’s focus can be on its core products

• Improvement in efficiency and quality

• Can boost productivity and competitiveness

• Usually leads to greater customer satisfaction

Drawbacks of outsourcing
• The firm’s financial success may be tied to that of another business.

• Loss of Managerial control, since the outsource firm has its own
management

• Can be a potential source of conflict, as the firm own workers may

laid off with the outsourcing aspects of the business
 Quality circles
These are groups of lower-level workers who meet regularly to analyze
and critically review the design and production of a product. The team
may also discuss production problems and develop possible solutions
to these problems.
Objectives of quality circles
• Promotion of employees involvement

• Improving productivity

• Fostering effective teamwork

• Allowing workers to develop their problem-solving capabilities

Features of quality circles
• It uses bottom up approach

• Members are not chosen but opt to volunteer their services

• Groups are usually small in size, consisting of just a few employees

Properly utilized quality circle can help to:
• Improve motivation in the workplace

• Promotes continuous improvement

• Promote team working among employees

Kaizen or Continuous improvement
• Kaizen is a Japanese concept of continuous improvement. The
approach is based on the notion that the improvement of a product
should be a never ending process.
The main features of kaizen or continuous
improvement
• Small improvements are less likely to require major capital investment
• Small improvements are made continuously
• The workforce is regarded as been talented, skilled and usually knows
more about the product therfore they are able to suggest
improvements to be made.
Limitations of kaizen or continuous
improvements
• There are little room for stability since things are always changing
• Employees may feel pressurized into continuously coming up with ew
ideas.
• The firm may incur short-term costs on a regular basis as it
implements changes.
Research and development
• R&D involves steps taken by a firm to improve either the product
itself or the way in which is made. This is particularly important in an
industry that is very competitive, as firms must improve or develop
 Benefits of R&D
• Help to boost sales
• Extends the firm’s reach into new markets
• Improvements in quality
• Can improve the firm’s reputation and brand
 Lean production
• This method of production is credited to the Japanese car
manufacturer, Toyota. Lean production was developed to reduce
wastage of resources by using as few resources as possible in
production.
• The company is expected to save money, time,materials and human
effort
 Total quality management
• TQM is a management philosophy which ensures that quality is
maintained in all areas of the organization order to meet customers
expectations.
• It is people focused and aims to satisfy the firm’s customers
continually.
Objectives of TQM
• The enhancement of performance in terms of quality, speed or
response, cost and flexibility.
• Improvement in the business’s flexibility and ability to adapt to the
changing environment.
• To foster a customer focused organization instead of one focused on
functions.
• To produce a product with zero defects
Principles of TQM
• W. Edwards Deming contributed to the study of quality improvement
in the mid 1900s.
Principles are:
• establishing long-term relationships with suppliers
• Educating workers and encouraging self-improvement
• Eliminating criticism of workers and unrealistic targets
• Breaking down barriers that exist among departments
Main features of TQM
• Consumer input
• Zero defects
• Team work / quailty circle
• Control strategies
• company culture and policies
• Quality chain- relationship between suppliers and customers
Factors that influence a successful TQM
• Constant training of employees
• The financial resources of the firm
• Involvement of trade unions in planning process- lead to workers
accepting changes
• Involvement of workers in decision-making
Benefits of TQM
• Promotes an improvement in quality and achievement of zero defects
• Proper implementation can lead to greater customers satisfaction
• Results in the continuous improvement of production and processes
• Can improve the firm’s competitiveness
Limitations of TQM
• Management may have unrealistic expectations for success which
cannot be materialize
• If not properly manage it may lead to labour management problems
• Implementation might be exorbitant