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MN7030Session7LeanandTQM2022.pptxppt/slideLayouts/slideLayout1.xml
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Slide title – Please use Arial, size 30 Please do not change the formatting of this slide. Remember to keep your slides brief. Only include key points of prompts on the screen. Retain the formatting set out here. Elements of the slide are aligned as per the brand guidelines. If emphasis of one or two words is called for then bold text is permitted, though use this sparingly. For more information about our editorial style and to download the latest templates, visit: londonmet.ac.uk/brand.
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Master of Business Administration Session 7 Lean and Quality Management Professor Nigel Caldwell
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Agenda Once upon a time in mass production land Synchronised flow The four key elements of lean Lean tools What is lean? Does lean work? N.B. statistical process control comes later
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“ Defects are not free, someone makes them and gets paid for the privilege” W. Edwards Demming Quality Guru
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Time Costs of quality Appraisal Internal failure Appraisal Prevention Total cost of quality Preventing mistakes (‘waste’) is cheaper than putting mistakes right style.visibility ppt_w ppt_h style.visibility style.visibility style.visibility style.visibility style.visibility style.visibility style.visibility
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Total Quality Costs Failure costs Appraisal costs Prevention costs Increasing quality costs Increasing ability to meet customer requirements Investment in Prevention leads to a Decrease in Total Quality Costs
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Nissan factory Yokohama Japan circa 1954 Austin A40 Somerset celebrations of the first model built in Japan from parts supplied by Longbridge , Birmingham, UK
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Lean – born in Japan out of necessity 1945 - End of WW11 Toyota faces a daunting prospect: How to compete against Western Auto Giants entering the Japanese market? Kiichiro Toyoda to Taiichi Ohno “ Catch up with US in 3 Years ” Ohno ’ s challenge: How to design a production system exploiting the central weakness of mass production Japan ’ s dilemmas: Small & fragmented market, depleted workforce, scarce natural resources, little capital Lean evolved as a response to this challenge over a number of decades
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Upfront investment : Japan vs the US Contrast between Japanese and USA’s traditional approach to NPD Time % Resources Concept development Design & prototyping Manufacturing & assembly Trials Ramp-up Launch Japan USA
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Design Flexiblity and Cost of Design Changes High Low Time Flexibility in design Cost of design changes Involving Suppliers in New Product Development style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h style.visibility ppt_w ppt_h
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Traditional & concurrent NPD From sequential to concurrent : lead time reduction Strong influence from Japanese auto industry By 1990 Japan had a NPD lead-time advantage of between 12 -18 months* Concept generation Product planning Advanced engineering Product engineering Process engineering Pilot run Time Stages
