Thursday, 12 January 2012

kaizen production

  • Kaizen (or ‘continuous improvement’) is an approach ofconstantly introducing small incremental changes in a business in order to improve quality and/or efficiency
  • This approach assumes that employees are the best people to identify improvements in the way things are done since they see the processes in action all the time. 
  • A firm that uses this approach therefore has to have a culturethat encourages and rewards employees for their  
The key features of Kaizen include:
  • Improvements are based on many, small changes rather than the radical changes that might arise from Research and Development
  • As the ideas come from the workers themselves, they are less likely to be radically different, and therefore easier to implement
  • Small improvements are less likely to require major capital investment than major process changes
  • It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby improving worker motivation
  • Whilst staff suggestions can help to enrich the work for many employees, Kaizen can be seen as an unrelenting process. 
  •  Some firms set targets for individuals or for teams to come up with a minimum number of ideas in a period of time. Employees can find this to be an unwelcome pressure, as it becomes increasingly difficult to find further scope for improvement.  
  • Some firms, especially Japanese-owned, conduct quality improvement sessions in the workers’ own time, which can lead to resentment unless there is appropriate recognition and reward for suggestions.

job production

  • The complete task is handled by a single worker /group of workers. Jobs can be small-scale/low technology/ high technology
  • Low technology jobs:  The organisation of production is very simple, with the required skills and equipment easily obtainable. Enables the customer's specific requirements to be included, often as the job progresses. E.g. hairdressers, tailoring, painting, decorating, plumbing
  • High technology jobs: Involve much greater complexity - and therefore present greater management challenge. Project management/ project control is essential. The essential features of good project control for a job are:
  • - Clear definitions of objectives ( how should the job progress e.g dates)
  • - Decision-making process  (how are decisions taking about the needs of each process in the job, labour and other resources) 
  • E.g,  film production; large construction projects (e.g. the Millennium Dome) 
ADVANTAGES
  • Product usually high quality 
  • Producer meets individual customer needs  
  • Greater job satisfaction – involved in all stages of production 
DISADVANTAGES 
  • Cost of producing one unit or job is higher  
  • Labour is intensive 
  • Requires investment in skills and training 

    SWOT

    Strengths
    Weaknesses
    Opportunities
    Threats

    lean production

    • An approach to management that focuses on cutting out waste, whilst ensuring quality
    • Lean production aims to cut costs by making the business more efficient and responsive to market needs.
    The lean approach to managing operations is really about:

    • Doing the simple things well
    • Doing things better
    • Involving employees in the continuous process of improvement
    • …and as a result, avoiding waste
    • The concept of lean production is an incredibly powerful one for any business that wants to become and/or remain competitive. 
    • Why? Because waste = cost  
    • Less waste therefore means lower costs, which is an essential part of any business being competitive.

    long term objectives

    Length- More than Year

    Example- Expand market share 

    Aim to grow in long-term could invest in training staff, build up their brands, expand into new market, put money into developing new product so these activities prove effective in long run but in short term profits may fall.

    short term objectives

    Length-Month to Year

    Examples-maximise profit

    For firm to maimise it rewards it could stop repairs of building/ facility, stop research in new products, stop training people, end most advertising. So as short term profits raise means in long run firm in weaker position.

    what does an entrepeneur have to take in to consideration when moving in to a nw market ?

    • Target client
    • Customer Satisfaction
    • Market gap
    • Funding- sponsorship, government funding
    • Amount of competition
    • How much product/service will charge?
    • Who is the target market?
    • How to advertise
    • Overall costing
    • Running costing
    • place --> location --> the way of distribution
    • cost to achieve break-even
    • Trends
    • Possible Tax implications
    • Copyright
    • Moral/ethics
    • interests of stakeholders
    • wages for staff- training, min wage
    • health and safety implications
    • government laws

    what does an entrepeneur have to take in to consideration when moving in to a nw market ?

    • Target client
    • Customer Satisfaction
    • Market gap
    • Funding- sponsorship, government funding
    • Amount of competition
    • How much product/service will charge?
    • Who is the target market?
    • How to advertise
    • Overall costing
    • Running costing
    • place --> location --> the way of distribution
    • cost to achieve break-even
    • Trends
    • Possible Tax implications
    • Copyright
    • Moral/ethics
    • interests of stakeholders
    • wages for staff- training, min wage
    • health and safety implications
    • government laws

    how can the size of a market be mesured?

    Value and volumes of sales and number of employees .

    how do small and large markets differ?

    Small Markets- Better quality, smaller costs, less tax, higher product prices, loyal customers.

    Larger Markets- Larger costs, more tax, more variety and sales, lower product prices, more money for promotion, higher sales, higher market share.

    what is the calculation for market share?

    market share = sales of product
                            total market sales     X 100%

    what do you understand by market growth?

    Increase in size of market for a particular product.

    if the market is shrinking, how will this affect a business?

    • Less business 
    • Possible bankruptcy 
    • Less competition so more fierce
    • Loyal customers could help
    • Tense little room for new ventures
    • Leader's profits would increase
    • Downward spiral as less customers
    • Prices increase 

    why would a business wantto enter a growing market ?


    • More opportunities for successful businesses 
    • Less fierce competition
    • Benefit from economics scale
    • Less chance of failure
    • More room to expand

    what is a sample? do you understand by market segments ? and how do these affect a business ?

    Different categories within a market.

    E.g: age, gender, income, socio-economic, usage rate, purchase occasion, demographic

    When designing their products/ services it has to suit these categories.

    mass market

    mass market- when a firm aims a product/ service at majority of market e.g: itv/bbc


    Advantages-
    • Larger target market
    • Higher sales possible
    • Easier access to products for consumer
    • can be lower cost as more consumers
    • guaranteed income
    • cheaper production
    • cheaper supplies
    • more variety
    Disadvantages- 
    • Lots of people will have different opinions so can't satisfy everyone
    • selective in way you advertise
    • more competition
    • higher costing

    niche market

    Niche- firm will concentrate on a specific section of market. e.g: e4/mtv rock


    Advantages-
    • Unique
    • More specific advertising
    • Loyal customers
    • Higher prices benefit company
    • Tailor needs for target market
    Disadvantages- 
    • higher price for customers
    • expensive supplies
    • less sales in comparison to mass
    • could be less income
    • high risk of failure
    • market can only grow so far
    • less demand

    niche market

    Niche- firm will concentrate on a specific section of market. e.g: e4/mtv rock


    Advantages-
    • Unique
    • More specific advertising
    • Loyal customers
    • Higher prices benefit company
    • Tailor needs for target market
    Disadvantages- 
    • higher price for customers
    • expensive supplies
    • less sales in comparison to mass
    • could be less income
    • high risk of failure
    • market can only grow so far
    • less demand

    smart targets

    Specific
    Measurable
    Achievable
    Realistic
    Timed

    Ansoff's matrix ( 4 marketing strategies)

    Market Penetration-
    What is it?-Firm tries to gain more of its existing market. May do it by cutting price/ Launch new advert campaign.
    Why is it important?- Encourages sales, expand business, make more well known, more income, increase market share 

    Market Development-
    What is it?-Firm sells existing product in new market. Could be new segment/ geographically.
    Why is it important?- Expand business growth, make more well known, more customers, new market. 

    New Product Development-
    What is it?-To develop new products to sell to existing customers. Can be modification of existing product/ completely new one. 
    Why is it important?- Expand business growth, more products to expand.   


    Diversification- 
    What is it?- When firm offers new product in new market. Doesn't mean the product/ market doesn't exist before just firm hasn't been involved in that area, aka no experience
    Why is it important?-Expand business growth, new product so new market however risky, big expansion.

     BUSINESSES WILL USE THESE STRATEGIES AT DIFFERENT TIMES. EACH WILL BE USED AT ONE POINT.

    types of leadership

    Autocratic

    • Leader makes decisions without reference to anyone else.
    • High degree of dependency on the leader
    • Can create de-lixiviation and alienation of staff.
    • May be valuable in some types of business where decisions need to be made quickly and decisively or where working with large amount of unskilled workers
    Democratic 

    • Encourages decision making from different perspectives.
    • Consultative- process of consultation before decisions are made.
    • Persuasive- leader takes decision and seeks to persuade others that decision correct.
    • Help motivation and involvement of staff
    • Workers feel ownership of the firm and the ideas
    • Improves the sharing of ideas/ experiences within bisuness
    • Delay decision making
    Laissez-faire

    • 'Let it be'  - leadership responsibilities are shared by all
    • Can be very useful in business where creative ideas are needed
    • Can be highly motivational as people have control over their working life
    • Can make co-ordination and decision making time consuming and lacking overall direction
    • Relies on good team work and interpersonal relations
    Paternalistic 

    • Leader acts as 'father figure'
    • support staff

    why do you think not all businesses trial there products?

    • waste of time as competitors may release product before - miss out on opportunity (opportunity costs)
    • a lot money in short run
    • high demand already as brand name
    • there are better marketing research techniques
    • multi-national use countries as test marketing

    product orientationduct extension strategies

    • Increasing the use of the product- 1980's Milk Marketing Board stressed the benefits of drinking an extra pint of milk each day. Shampoo products always advise you to rinse and wash again thereby doubling the usage rate.
    • Encouraging the use of the product on more occasions -Head & Shoulders was seen by consumers as a product to use when you had dandruff, the company tried to change this perception to get people to us it all year round to prevent dandruff.
    • Reducing the price- as products approach the maturity stage, firms often cut the price to maintain sales.
    • Adapting the product- supermarket use this technique a lot, 'new, improved'.
    • Introducing promotional offers- another technique often used by firms to keep sales high is to have competitions to boost their sales.
    • Changing the image of the product- For example Vodka, which have had their image changed to appeal to a younger audience. New versions have been launched, such as vodka and mixers, and the branding and packaging has been changed.