The modern manufacturing environment

The modern manufacturing environment

1. Total Quality Management (TQM)

   • The continuous process of reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience and ensuring that employees are up-to-speed with their training.
     • Total quality management aims to hold all parties involved in the production process as accountable for the overall quality of the final product or service.
   • Total quality management (TQM) was developed by William Deming, a management consultant whose work had great impact on Japanese manufacturing.
   • Key characteristics
     • Prevention of errors before they occur
     • Importance for the total quality of :
       • Production system
       • Products
     • Real participation of all employees are ensured
     • Commitment of the senior management for the cause;
     • Recognition of vital role of customers and suppliers
     • recognition of need of continual improvement

2. Just in Time (JIT)

   • An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires that producers are able to accurately forecast demand & suppliers must be reliable on delivery .
     • A good example would be a car manufacturer that operates with very low inventory levels, relying on their supply chain to deliver the parts they need to build cars. The parts needed to manufacture the cars do not arrive before nor after they are needed, rather they arrive just as they are needed.
   • Key characteristics
     • High quality:
       • The Quality is Attained through TQM
     • Speed:
       • rapid throughput to meet customers’ needs
     • Reliability:
       • computer aided manufacturing technology will assist.
     • Flexibility:
       • small batch sizes and automated techniques are used.
     • Low costs:
       • Low costs are attained through all of the maps on side :-)

3. Key features of companies operating in a JIT and TQM environment are:

   • high level of automation
   • High levels of overheads and low levels of direct labour costs
   • Customised products produced in small batches
   • low stocks
   • Emphasis on high quality and continuous improvement.

4. Standard product costs are associated with traditional manufacturing systems producing large quantities of standard items.