Unit 5 – Lean

Production

HL only
 The following features of lean production (AO1):
• Less waste
• Greater efficiency

• The following methods of lean production (AO2):

• Continuous improvement (kaizen)

5.3 • Just-in-time (JIT)

Learning • Features of cradle to cradle design and manufacturing (AO2)

• Features of quality control and quality assurance (AO2)

Objectives • The following methods of managing quality (AO2):

• Quality circle
• Benchmarking
• Total quality management (TQM)

• The impact of lean production and TQM on an organization (AO3)

• The importance of national and international quality standards
(AO2)
 A philosophy of streamlining production
processes in order to increase efficiency
and reduce waste

Lean Examples of waste that could be reduced:

Production  Could be due to defect products – any

problem in production must then be
redone and thrown out.
 May be due to making too many
products that cannot then be resold or
require storage.
 ATL skills
demonstrated:
How could a
business • Improved level of Thinking
Communication
improve motivation in the
efficiency in workplace
production?
• Improved technologies
Analyse for and capital equipment
each how this • Improved provision of
would improve training and development
efficiency for all employees
 Kaizen
2 Methods
of Lean
Production JIT (Just in time)
production
 A lean production method
Kaizen – of making continuous
Continous small, incremental
improvements to
improvement production processes to
achieve greater efficiency

ATL – Thinking, Communication

How could students make use of Kaizen in their daily life?

Why would this be beneficial for a business?

What problems could there be with this approach?

https://leansmarts.com
 Kaizen –
Advantages
Advantages Disadvantages
and Employees involved in Changing the culture to
disadvantage making suggestions to
improve - motivating for
Kaizen is time consuming –
may be resistance to
s employees change
Reduce costs for the Costs involved – such as
business due to higher training of employees
efficiency – potential
higher profit margins
Extra reading -

Kaizen over time

 A lean method of
stock control where
Just in materials are
Time (JIT) ordered to arrive
Production
only when they are
needed.
JIT Advantages Reduces storage costs as extra stock
is not required in the warehouse as
ATL – well as overhead costs saved such as
Thinking, energy bills, rent.
communication
Items may not get damaged or as
Analyse further only ordered when needed
using a car
manufacturer
as an example
JIT Inflexible to sudden changes in
disadvantages demand if higher than expected –
lost sale opportunities
ATL – Thinking,
communication
Reliant on supplier to deliver on
Analyse further time and deliver good quality – need
using a car a good relationship with supplier.
manufacturer as Delays can affect production/brand
an example image
Toyota
video - ATL – Communication, Social
discuss
Discuss with a partner what
lean production methods were
shown. Are they effective?

https://www.youtube.com/watch?v=F5v
tCRFRAK0
ATL skills
https://www.timeconsultinggroup.com/blog/lean-the-concept-
demonstrated: that-built-three-of-the-worlds-biggest-brands

Research

Read the article – summarise how the 3 businesses discussed use

lean production.

Article
TOK/Ethics – Consider the impact of a focus on high efficiency
and continuous improvement on the employees work conditions
and morale.

Research stories on Amazon's warehouses.

 Quality means that a product
Quality or service is “fit for purpose” –
it meets the needs of the
ATL – Thinking, Self- customers.
management

How could students

ensure their work in IB is How can a business ensure the
of a high quality? products are of good quality
when producing them ?
Inside Amazon's warehouse video - activity
https://www.youtube.com/watch?v=IMPbKVb8y8s

Pause the video each 2 minutes and discuss what

Amazon is doing and the effects this may have on
different stakeholder groups (e.g. employees)

ATL skills

Communication
Social
Thinking
 Quality Control v Quality Assurance

Quality Control - An inspector checks the final product at the end of the
production process

Quality Assurance - Training all staff to check their own work throughout
the production process

What would be the advantages and disadvantages of both methods

compared to the other.
Advantages of QC
Inspectors are experts so should prevent
poor quality reaching the customer

May be cheaper than quality assurance

as don’t need to train all workers.
Disadvantages of QC
Does not prevent mistakes occurring in the first
place

Items only checked at the end so may be many

products that can no longer be used – wastage and
high costs (not ideal for lean production)
 Advantages of QA
Employees are more motivated as
given responsibility and training

Reduces costs of wastage and poor

products by identifying issues early
 Only works if all staff
are committed to it
Disadvantages
and check products
of QA
Expensive and time
consuming to train all
workers.
What problems would poor quality have for a
business?

ATL Research – Can you find business examples of quality problems?

Extra reading

Kia and Hyundai engine recalls

Adidas Kobe sneakers recall
 Small groups of employees from
different departments meet
Quality regularly to assess quality issues
and make recommendations for
Circles improvement.
 https://www.youtube.com/watch?v=Xb-x
2Q5GT6s
Video
discussion

Honda ATL – Communication, Thinking

Quality Discuss how this approach might benefit

circles Honda
 Working in a team to solve
problems can improve
motivation (love and
Quality belonging needs)
Circle
Employees may come up
advantages with good ideas to improve
quality and productivity and
feel valued and trusted.
 Could be potentially
demotivating if ideas and
suggestions are never used so
must be managed carefully
Quality Circle
disadvantages Employees may need trained
and should be suitably
qualified to contribute
Benchmarking
Comparing the products and processes of a business against its competitors. Involves learning
from them about best practices and adapting for use in the business

Often focuses on improvements relating to:

• Quality
• Time ATL – Research, Communication
• Cost
Choose a business and consider who
would be competitors to them– look into
their website and what they offer – what
could be learnt from them?
Benchmarking – advantages and disadvantages

Advantages - Can help determine strengths and weaknesses

versus your competitor and identify areas of improvement to be
implemented

Disadvantages - Time consuming and expensive to accurately

benchmark competitors / may be difficult to obtain information

Extra reading - Benchmarking in detail

TQM – Total Quality Management
A zero defect approach where all employees are responsible for
maintaining quality standards throughout the production process.

Aim is to get it right first time 

Whole business approach

TQM award
https://www.financialexpress.com/express-mobility/rane-groups-l-ganesh-becomes-third-indian-to-
win-deming-award-for-tqm/2815946/

Chennai-headquartered component major Rane Group’s Chairman, L Ganesh has been recently
conferred with the prestigious Deming Award.

He has been recognised for his outstanding contribution in the dissemination and promotion
(Overseas) of Total Quality Management (TQM).

The Deming Prize is an annual award presented to organisations and individuals that have
implemented Total Quality Management (TQM) catering to its management philosophy, scope, scale
of business, type, and management environment. 
 Production costs may fall as zero
defects should reduce wastage

May increase brand image for

TQM quality - could charge higher
advantages prices 
Higher staff motivation - trust and
valued, teamwork, training, etc.
 Very expensive to train all
staff and maintain standards
for all workers
TQM
Disadvantages Takes time to change a
culture – only works if
everyone is fully committed
to it – is it realistic?
Cradle to Cradle Manufacturing
A sustainable, waste-free production model in which all material inputs can be
recycled or reused.

• Reuse
• Recycle materials
• Biodegradable

ATL Research – Can you find examples of businesses who may use this model?
 
 Advantages Disadvantages
Help provide better Costs involved of only
brand image – ethical using these – likely
Cradle to – loyalty cheaper to use other
materials
Cradle –
advantages
Can provide a USP for Potentially time
and the business – consuming to source
disadvantages differentiate from materials –
competitors opportunity cost.
 International Organisation for Standardisation (ISO) are
internationally recognised standards for quality – ISO 9000

What could be an advantage and disadvantage to a

business of having this standard?

https://www.iso.org/iso-9001-quality-management.html
International
Standards Better brand image – can use in marketing – quality can
lead to loyalty

May also attract workers

Costs involved of meeting each standard – training, time

etc
National standards
Each country may have different standards for quality for different industries.

• Schools will have to meet certain standards

• When cooking and preparing food certain quality standards need to be met
• In a factory, there will be certain quality standards.

• Why is it important to have set standards for quality?