Lean Exam 1: World Class Manufacturing

Study Notes

World Class Manufacturing

A sustainable approach aimed at consistent profitability and competitiveness in global markets.
Focuses on future viability in the face of international competition.

Management/Employee Involvement Characteristics

Strong emphasis on teamwork and effective communication across all organization levels.
Empowerment of employees through autonomous groups promotes Lean Manufacturing practices.
Adopts Total Quality Management principles, supported by robust leadership.
Cultivates a culture that encourages innovation and environmental sensitivity.
Utilizes a life-cycle approach in product development, enhancing strategic planning and technology awareness.
Maintains an effective organizational structure with continuous reengineering for holistic objectives.
Prioritizes customer focus, emphasizing research, education, and a strong marketing presence.

Focus on Quality Characteristics

Implements Total Quality Management ensuring reliable products and rigorous statistical quality control.
Partners with vendors to uphold high environmental standards and maintain product quality.
Designs products specifically based on customer needs while achieving ISO certification and engaging in benchmarking practices.

Efficient Production Operations Characteristics

Concentrates on productivity improvement with flexible manufacturing solutions.
Employs modern methods like Just-In-Time (JIT), Material Requirements Planning (MRP), KANBAN, Total Productive Maintenance (TPM), and others to optimize operations.
Utilizes concurrent engineering to enhance the product realization process while striving for waste reduction and work simplification.
Implements preventative maintenance strategies to boost productivity and applies value analysis during product development.

Customer Focus

Prioritizes customer-driven product development processes and creates environmentally safe manufacturing methods.
Engages in Just-In-Time manufacturing tailored to meet customer quality requirements while maximizing customer value.

International Comparisons: Manufacturing Output

The United States has seen steady output growth, while Japan has outpaced them significantly.
Other countries like Australia, Canada, Germany, and the UK have relatively stable outputs.

International Comparisons: Exports of Manufacturing Goods

The U.S. has experienced a decline in manufacturing goods exports.
Rapid increases in exports noted for Japan, with Germany leading overall.

Export/Import Ratios

The U.S. has a high aerospace export ratio and a subpar total manufacturing ratio.
Japan had a high electronics export ratio that has decreased over time.

Trade Balance in Electronics

The U.S. reports a significant negative trade balance (~~$15 billion), while Germany boasts a positive balance (~~$40 billion).

Output Trends and Productivity

Manufacturing output has risen across all selected countries over the years.
The U.S. ranks the highest for output per worker among selected countries.
The U.S. leads in the technology balance of payments.

International Trade Overview

Both U.S. exports and imports of goods and services have increased substantially over time, resulting in a negative trade balance.

Challenges Faced by U.S. Manufacturing

Recognition failures regarding competitive market sizes and manufacturing capacity impacts hinder progress.
Top management's inexperience in manufacturing and a focus on short-term performance often overlook customer needs.
Issues with resources include ineffective operations management, excessive hierarchical structures, and poor labor relations.
Observed low productivity, movement of capital, and lack of continuous improvement further exacerbate these challenges.
Strategic planning deficiencies and legal complications create additional barriers for U.S. manufacturing competitiveness.

Description

Test your knowledge of World Class Manufacturing concepts with these flashcards. This quiz covers key characteristics and definitions essential for success in international competition. Get ready to dive into management strategies and employee involvement.