TASK 12.4 Write about a recent occasion when you successfully influenced someone.
TASK 12.5 Prepare a presentation: Business cycles
SELF-STUDY 13
TASK 13.1 Reading
Read the text about Lean operations and JIT and answer the following questions.
What are the advantages and disadvantages of lean manufacturing and how it operates?
Give the definition of JIT and explain how it works.
What effects would lean manufacturing have on a company? Think about employees, customers, equipment, premises.
Outside of a business context, 'lean' means 'thin in a healthy way'/'no fat'. In a business context, it refers to an approach which tries to meet demand instantaneously with perfect quality and no waste. The most important idea of lean operations is that of minimizing inventory kept on the premises - both stock and work-in-progress (WIP). So parts, components, raw materials and other supplies are delivered to the factory just as they are needed. And once delivered, the throughput (= rate at which work goes through the system) is fast.
Note that with lean operations the capacity utilization (= ratio of actual output to potential output) is often low. This is a difference with traditional approaches. Note also that the need to carry inventory doesn't disappear - it just shifts to suppliers.
The techniques used for lean operations are often called 'just-in-time' (JIT) techniques. These include:
Making every effort to eliminate waste.
Developing working practices which support 'continuous improvement' (often called bv its Japanese name 'kaizen').
Involving all staff in quality initiatives.
Improving the flow of work-in-progress around the plant by rearranging layout and using machines that are small, simple, robust and flexible.
Reducing set-up and change-over times. Incorporating manufacturing considerations into the design process (reducing production costs by reducing design complexity).
Why use JIT techniques? Because materials, work-inprogress and finished goods that are not being used represent a waste of time, space and money.
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