Question

1c)

Why productivity is important in manufacturing?

1d)

explain how just in time, the Toyota production system, and learn production can be used for improving productivity of this company. Discuss the advantages of these three techniques for productivity improvement (list one advantage for each of three tools.)

Answer 1

1.c) By being productive, a manufacturing company will use minimum resources to produce a good. There will be minimum wastage. The company will be more efficient in its operations. The more productive a company is, the better will be its profitablility and performance.

If the production capacity is used to the fullest, the cost of manufacturing will come down This will help in providing better quality products at a lesser price. This will directly lead to more profits for the company.

1.d) Just in time involves getting the goods or raw materials only when needed by a company. This will lead to a reduction in inventory costs and an improvement in productivity. However, to get the goods just when needed, the forecasting process must be very accurate.

Just in time will help reduce the need for storing huge quantities of raw materials in the warehouse. In addition, the firm can will need to spend less on raw materials as just the needed materials are being purchased.

Toyota production system involves building only what is ordered. This helps in keeping a check on overhead costs, thereby keeping the price of products more stable. Applying Just In Time and eliminating waste is the key of the Toyota production system. It also applies 'jidoka' , a process which help in preventing the production of defective products.

The toyota production system will help in decreasing setup times and manufacturing costs.

Lean production or lean manufacturing is a method of minimizing wastes without affecting productivity. The aim of lean manufacturing is to manufacture with zero waste. It involves process reingineering and continuous improvement of each step of the manufacturing process.

Lean production will help in improving the flow of the materials and process and in eliminating wastes. It also helps in eliminating the resources that do not add any value to the production process.