Employee Empowerment Employee involvement is vital for identifying and eliminating all forms of waste. A major procedural difference between traditional and lean environment is the degree of participation allowed workers in the management of the organization. In a lean environment, increasing the degree of participation increases productivity and overall cost efficiency. Managers seek workers input and use their suggestions to improve production processes. The management structure must change in response to greater employee involvement. Because workers assume greater responsibilities, fewer managers are needed, and the organizational structure becomes flatter. Flatter structures speed up and increase the quality of information exchange. The style of management needed in a lean firm also changes. Managers in a lean environment act as facilitators more than as supervisors. Their role is to develop people and their skills so that they can make value-adding contributions.
Total Quality Control Lean manufacturing necessarily carries with it a much stronger emphasis on managing quality. A defective part brings production to a grinding halt. Poor quality simply put, lean manufacturing cannot be implemented without a commitment to total quality control (TQC). TQC is essentially a never-ending quest for perfect quality: the striving for defect-free product design and manufacturing process. Quality cost management is discussed extensively in chapter 15.
Inventories Over production of goods is controlled by letting customers pull goods through the system. Inventories are lowered by cellular manufacturing low setup times, JIT purchasing, and a demand-pull system. Inventory management is of such importance that its treatment is covered in a separate chapter, Chapter 18.
Activity-Based Management Process value analysis is the methodology for identifying and eliminating non-value-added activities. Non-value-added activities system is attacked using process value analysis. Process value analysis searches for the root causes of the wasteful activities and then, over time, eliminates these activities. See Chapter 5 for a detailed discussion of process value analysis.
Employee Empowerment Employee involvement is vital for identifying and eliminating all forms of waste. A major procedural difference between traditional and lean environment is the degree of participation allowed workers in the management of the organization. In a lean environment, increasing the degree of participation increases productivity and overall cost efficiency. Managers seek workers input and use their suggestions to improve production processes. The management structure must change in response to greater employee involvement. Because workers assume greater responsibilities, fewer managers are needed, and the organizational structure becomes flatter. Flatter structures speed up and increase the quality of information exchange. The style of management needed in a lean firm also changes. Managers in a lean environment act as facilitators more than as supervisors. Their role is to develop people and their skills so that they can make value-adding contributions.Total Quality Control Lean manufacturing necessarily carries with it a much stronger emphasis on managing quality. A defective part brings production to a grinding halt. Poor quality simply put, lean manufacturing cannot be implemented without a commitment to total quality control (TQC). TQC is essentially a never-ending quest for perfect quality: the striving for defect-free product design and manufacturing process. Quality cost management is discussed extensively in chapter 15.Inventories Over production of goods is controlled by letting customers pull goods through the system. Inventories are lowered by cellular manufacturing low setup times, JIT purchasing, and a demand-pull system. Inventory management is of such importance that its treatment is covered in a separate chapter, Chapter 18.Activity-Based Management Process value analysis is the methodology for identifying and eliminating non-value-added activities. Non-value-added activities system is attacked using process value analysis. Process value analysis searches for the root causes of the wasteful activities and then, over time, eliminates these activities. See Chapter 5 for a detailed discussion of process value analysis.
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