C1 Lxplaln ln brlef Lhe orlglns of !

usL ln 1lme Lxplaln Lhe dlfferenL Lypes of wasLes LhaL can be

ellmlnaLed uslng !l1
Ans !usL ln 1lme (!l1) ls a managemenL phllosophy almed aL ellmlnaLlng wasLe and conLlnuously
lmprovlng quallLy CredlL for developlng !l1 as a managemenL sLraLegy goes Lo 1oyoLa 1oyoLa
!l1 manufacLurlng sLarLed ln Lhe afLermaLh of World War ll
AlLhough Lhe hlsLory of !l1 Lraces back Lo Penry lord who applled !usL ln 1lme prlnclples Lo
manage lnvenLory ln Lhe lord AuLomoblle Company durlng Lhe early parL of Lhe 20Lh CenLury
Lhe orlglns of Lhe !l1 as a managemenL sLraLegy Lraces Lo 1allchl Cnho of Lhe 1oyoLa
ManufacLurlng Company Pe developed !usL ln 1lme sLraLegy as a means of compeLlLlve
advanLage durlng Lhe posL World War ll perlod ln !apan
1he posLWorld War ll !apanese auLomoblle lndusLry faced a crlsls of exlsLence and companles
such as 1oyoLa looked Lo benchmark Lhelr Lhrlvlng Amerlcan counLerparLs 1he producLlvlLy of
an Amerlcan car worker was nlne Llmes LhaL of a !apanese car worker aL LhaL Llme and 1allchl
Cnho soughL ways Lo reach such levels
1wo presslng challenges however prevenLed 1oyoLa from adopLlng Lhe Amerlcan way
1 Amerlcan car manufacLurers made loLs" or a baLch" of a model or a componenL
before swlLchlng over Lo a new model or componenL 1hls sysLem was noL sulLed Lo Lhe
!apanese condlLlons where a small markeL requlred manufacLurlng ln small quanLlLles
2 1he car prlclng pollcy of uS manufacLurers was Lo charge a markup on Lhe cosL prlce
1he low demand ln !apan led Lo prlce reslsLance 1he need of Lhe hour was Lhus Lo reduce
manufacLurlng cosLs Lo lncrease proflLs
1o overcome Lhese Lwo challenges 1allchl Cnho ldenLlfled wasLe as Lhe prlmary evll 1he
caLegorles of wasLe ldenLlfled lncluded
r overproducLlon
r lnvenLory or wasLe assoclaLed wlLh keeplng dead sLock
r Llme spenL by workers walLlng for maLerlals Lo appear ln Lhe assembly llne
r Llme spend on LransporLaLlon or movemenL
r workers spendlng more Llme Lhan necessary processlng an lLem
r wasLe assoclaLed wlLh defecLlve lLems
1allchl Cnho Lhen soughL Lo ellmlnaLe wasLe Lhrough Lhe [usLlnLlme phllosophy where lLems
moved Lhrough Lhe producLlon sysLem only as and when needed
1he 1oyoLa producLlon sysLem ls a Lechnology of comprehenslve producLlon managemenL Lhe
!apanese lnvenLed a hundred years afLer openlng up Lo Lhe modern world 1he baslc ldea of
Lhls sysLem ls Lo malnLaln a conLlnuous flow of producLs ln facLorles ln order Lo flexlbly adapL Lo
demand changes 1he reallsaLlon of such producLlon flow ls called !usLlnLlme producLlon
whlch means produclng only necessary unlLs ln a necessary quanLlLy aL a necessary Llme As a
resulL Lhe excess lnvenLorles and Lhe excess workforce wlll be naLurally dlmlnlshed Lhereby
achlevlng Lhe purposes of lncreased producLlvlLy and cosL reducLlon
1he baslc prlnclple of !usLlnLlme producLlon ls raLlonal LhaL ls Lhe 1oyoLa producLlon sysLem
has been developed by sLeadlly pursulng Lhe orLhodox way of producLlon managemenL WlLh
Lhe reallsaLlon of Lhls concepL unnecessary lnLermedlaLe and flnlshed producL lnvenLorles
would be ellmlnaLed Powever alLhough cosL reducLlon ls Lhe sysLem's mosL lmporLanL goal lL
musL achleve Lhree oLher subgoals ln order Lo achleve lLs prlmary ob[ecLlve 1hey lnclude
1 CuanLlLy conLrol whlch enables Lhe sysLem Lo adapL Lo dally and monLhly flucLuaLlons ln
demand ln Lerms of quanLlLles and varleLy
2 CuallLy assurance whlch assures LhaL each process wlll supply only good unlLs Lo Lhe
subsequenL processes
3 8especLforhumanlLy whlch musL be culLlvaLed whlle Lhe sysLem uLlllses Lhe human
resource Lo aLLaln lLs cosL ob[ecLlves lL should be emphaslsed here LhaL Lhese Lhree goals
cannoL exlsL lndependenLly or be achleved lndependenLly wlLhouL lnfluenclng each oLher or Lhe
prlmary goal of cosL reducLlon All goals are ouLpuL of Lhe same sysLem wlLh producLlvlLy as Lhe
ulLlmaLe purpose and guldlng concepL Lhe 1oyoLa producLlon sysLem sLrlves Lo reallse each of
Lhe goals for whlch lL has been deslgned 8efore dlscusslng Lhe conLenLs of Lhe 1oyoLa
producLlon sysLem ln deLall an overvlew of Lhls sysLem ls ln order 1he ouLpuLs or resulL slde as
well as Lhe lnpuLs or consLlLuenL slde of Lhe producLlon sysLem are deplcLed
A conLlnuous flow of producLlon or adapLlng Lo demand changes ln quanLlLles and varleLy ls
creaLed byachlevlng Lwo key concepLs !usLlnLlme and AuLonamaLlon 1hese Lwo concepLs are
Lhe plllars of Lhe 1oyoLa producLlon sysLem !usLlnLlme baslcally means Lo produce Lhe
necessary unlLs ln Lhe necessary quanLlLles aL Lhe necessary Llme
AuLonamaLlon (!ldoka" ln !apanese) may be loosely lnLerpreLed as auLonomous defecLs
conLrol lL supporLs !usLlnLlme by never allowlng defecLlve unlLs from Lhe precedlng process Lo
flow lnLo and dlsrupL a subsequenL process 1wo concepLs also key Lo Lhe 1oyoLa producLlon
sysLem lnclude llexlble work force (Sho[lnka" ln !apanese) whlch means varylng Lhe number of
workers Lo demand changes and CreaLlve Lhlnklng or lnvenLlve ldeas (solkufu") or caplLallslng
on workers suggesLlons
1o reallse Lhese four concepLs 1oyoLa has esLabllshed Lhe followlng sysLems and meLhods
1 kanban sysLem Lo malnLaln !usLlnLlme producLlon
2 roducLlon smooLhlng meLhod Lo adapL Lo demand changes
3 ShorLenlng of seLup Llme for reduclng Lhe producLlon lead Llme
4 SLandardlsaLlon of operaLlons Lo aLLaln llne balanclng
3 Machlne layouL and Lhe mulLlfuncLlon worker for flexlble work force
6 lmprovemenL acLlvlLles by small groups and Lhe suggesLlon sysLem Lo reduce Lhe work force
and lncrease Lhe worker's morale
7 vlsual conLrol sysLem Lo achleve Lhe AuLonamaLlon concepL
8 luncLlonal ManagemenL sysLem Lo promoLe companywlde quallLy conLrol
!usLlnLlme producLlon
1he ldea of produclng Lhe necessary unlLs ln Lhe necessary quanLlLles aL Lhe necessary Llme ls
descrlbed by Lhe shorL Lerm !usLlnLlme !usLlnLlme means for example LhaL ln Lhe process of
assembllng Lhe parLs Lo bulld a car Lhe necessary klnd of subassemblles of Lhe precedlng
processes should arrlve aL Lhe producL llne aL Lhe Llme needed ln Lhe necessary quanLlLles lf
!usLlnLlme ls reallsed ln Lhe enLlre flrm Lhen unnecessary lnvenLorles ln Lhe facLory wlll be
compleLely ellmlnaLed maklng sLores or warehouses unnecessary 1he lnvenLory carrylng cosLs
wlll be dlmlnlshed and Lhe raLlo of caplLal Lurnover wlll be lncreased
Powever Lo rely solely on Lhe cenLral plannlng approach whlch lnsLrucLs Lhe producLlon
schedules Lo all processes slmulLaneously lL ls very dlfflculL Lo reallse !usLlnLlme ln all Lhe
processes for a producL llke an auLomoblle whlch conslsLs of Lhousands of parLs 1herefore ln
1oyoLa sysLem lL ls necessary Lo look aL Lhe producLlon flow conversely ln oLher words Lhe
people of a cerLaln process go Lo Lhe precedlng process Lo wlLhdraw Lhe necessary unlLs ln Lhe
necessary quanLlLles aL Lhe necessary Llme 1hen whaL Lhe precedlng process has Lo do ls
produce only enough quanLlLles of unlLs Lo replace Lhose LhaL have been wlLhdrawn

C2 8rlng ouL Lhe hlsLorlcal background of value LnglneerlngLlucldaLeLhree companles whlch
have lncorporaLed vL wlLh brlef explanaLlon
value Lnglneerlng ls a sysLemaLlc meLhod Lo lmprove Lhe value of goods and servlces by uslng
an examlnaLlon of funcLlon value as deflned ls Lhe raLlo of luncLlon Lo CosL value can
Lherefore be lncreased by elLher lmprovlng Lhe luncLlon or reduclng Lhe cosL lL ls a prlmary
LeneL of value Lnglneerlng LhaL baslc funcLlons be preserved and noL be reduced as a
consequence of pursulng value lmprovemenLs

value Lnglneerlng ls a body of knowledge as a Lechnlque ln whlch Lhe value of a sysLem's
ouLpuLs ls opLlmlzed by crafLlng a mlx of performance (luncLlon) and cosLs ln mosL cases Lhls
pracLlce ldenLlfles and removes unnecessary expendlLures Lhereby lncreaslng Lhe value for Lhe
manufacLurer and/or Lhelr cusLomers
value Lnglneerlng uses raLlonal loglc (a unlque how why quesLlonlng Lechnlque) and Lhe
analysls of luncLlon Lo ldenLlfy relaLlonshlps LhaL lncrease value lL ls consldered a quanLlLaLlve
meLhod slmllar Lo Lhe SclenLlflc MeLhod whlch focuses on PypoLhesls Concluslon Lo LesL
relaLlonshlps and CperaLlons 8esearch whlch uses model bulldlng Lo ldenLlfy predlcLlve
relaLlonshlps
vALuL AnAL?SlS 1he !ob lan
value Lnglneerlng ls ofLen done by sysLemaLlcally followlng a mulLlsLage !ob lan l1 lS a 8
sLep procedure called Lhe value Analysls !ob lan CLhers have varled Lhe !ob lan Lo flL Lhelr
consLralnLs Cne modern verslon has Lhe followlng elghL sLeps
8LA8A1lCn
lnlC8MA1lCn
AnAL?SlS
C8LA1lCn
LvALuA1lCn
uLvLLCMLn1
8LSLn1A1lCn
lCLLCWu
lour baslc sLeps ln Lhe vALuL AnAL?SlS !ob lan are
- lnformaLlon gaLherlng 1hls asks whaL Lhe requlremenLs are for Lhe ob[ecL luncLlon
analysls an lmporLanL Lechnlque ln value englneerlng ls usually done ln Lhls lnlLlal sLage lL Lrles
Lo deLermlne whaL funcLlons or performance characLerlsLlcs are lmporLanL lL asks quesLlons
llke WhaL does Lhe ob[ecL do? WhaL musL lL do? WhaL should lL do? WhaL could lL do? WhaL
musL lL noL do?
- AlLernaLlve generaLlon (CreaLlon) ln Lhls sLage value englneers ask WhaL are Lhe varlous
alLernaLlve ways of meeLlng requlremenLs? WhaL else wlll perform Lhe deslred funcLlon?
- LvaluaLlon ln Lhls sLage all Lhe alLernaLlves are assessed by evaluaLlng how well Lhey meeL
Lhe requlred funcLlons and how greaL wlll Lhe cosL savlngs be
- resenLaLlon ln Lhe flnal sLage Lhe besL alLernaLlve wlll be chosen and presenLed Lo Lhe
cllenL for flnal declslon

Pow lL works
vL follows a sLrucLured LhoughL process Lo evaluaLe opLlons
CaLher lnformaLlon

1 WhaL ls belng done now?
Who ls dolng lL?
WhaL could lL do?
WhaL musL noL Lo do?
Measure
2 Pow wlll Lhe alLernaLlves be measured?
WhaL are Lhe alLernaLe ways of meeLlng requlremenLs?

WhaL else can perform Lhe deslred funcLlon?
Analyze
3 WhaL musL be done?

WhaL does lL CosL?
CeneraLe
4 WhaL else wlll do Lhe [ob?
LvaluaLe
3 Whlch ldeas are Lhe besL?
6 uevelop and Lxpand ldeas WhaL are Lhe lmpacLs? WhaL ls Lhe cosL? WhaL ls Lhe
performance?
7 resenL ldeas Sell AlLernaLlves

vALuL LnClnLL8lnC
value englneerlng ls an approach Lo producLlvlLy lmprovemenL LhaL aLLempLs Lo lncrease Lhe
value obLalned by a cusLomer of a producL by offerlng Lhe same level of funcLlonallLy aL a lower
cosL
value englneerlng ls someLlmes used Lo apply Lo Lhls process of cosL reducLlon prlor Lo
manufacLure whlle value analysls applles Lhe process Lo producLs currenLly belng
manufacLured
8oLh aLLempL Lo ellmlnaLe cosLs LhaL do noL conLrlbuLe Lo Lhe value and performance of Lhe
producL (or servlce buL Lhe approach ls more common ln manufacLurlng)
value englneerlng Lhus crlLlcally examlnes Lhe conLrlbuLlon made Lo producL value by each
feaLure of a deslgn lL Lhen looks Lo dellver Lhe same conLrlbuLlon aL lower cosL
ulfferenL Lypes of value are recognlsed by Lhe approach
use value relaLes Lo Lhe aLLrlbuLes of a producL whlch enable lL Lo perform lLs funcLlon
CosL value ls Lhe LoLal cosL of produclng Lhe producL
LsLeem value ls Lhe addlLlonal premlum prlce whlch a producL can aLLracL because of lLs
lnLrlnslc aLLracLlveness Lo purchasers
Lxchange value ls Lhe sum of Lhe aLLrlbuLes whlch enable Lhe producL Lo be exchanged or sold
AlLhough Lhe relaLlve magnlLude of Lhese dlfferenL Lypes of value wlll vary beLween producLs
and perhaps over Lhe llfe of a producL vL aLLempLs Lo ldenLlfy Lhe conLrlbuLlon of each feaLure
Lo each Lype of value Lhrough sysLemaLlc analysls and sLrucLured creaLlvlLy enhanclng
Lechnlques
value englneerlng programs are besL dellvered by mulLlskllled Leams conslsLlng of deslgners
purchaslng speclallsLs operaLlons personnel and flnanclal analysLs
areLo analysls ls ofLen used Lo prlorlLlse Lhose parLs of Lhe LoLal deslgn LhaL are mosL worLhy of
aLLenLlon 1hese are Lhen sub[ecL Lo rlgorous scruLlny 1he Leam analyses Lhe funcLlon and cosL
of Lhose elemenLs and Lrles Lo flnd any slmllar componenLs LhaL could do Lhe same [ob aL lower
cosL
Common resulLs are a reducLlon ln Lhe number of componenLs Lhe use of cheaper maLerlals or
a slmpllflcaLlon of Lhe process

2 1o developmenL of Lean ManufacLurlng Can we use value Lnglneerlng ln Lean
ManufacLurlng vALuL S18LAM

?LS vALuL LnClnLL8lnC 1LCPnlCuLS CAn 8L uSLu ln 1PL LLAn MAnulAC1u8lnC
8CCLSS

l1 AL8LAu? lnCLuuLS SCML LLLMLn1S

3 Cn Lhe oLher hand Can we deslgn Lean ManufacLurlng wlLh value Lnglneerlng Approach
and called LhaL Lean value Lnglneerlng ln manufacLurlng

?LS vALuL LnClnLL8lnC CAn 8L ALlLu 1C A LLAn MAnulAC1u8lnC
SCML LxAMLLS

18CuuC1 uLSlCn
make Lhe deslgn slmple
easy Lo use
reduce CCMLlCA1Lu / expenslve parLs
28CuuC1 8AW MA1L8lAL / A81S 8CCu8LMLn1
esLabllsh Lhe demand plannlng sysLem reduce Lhe flucLuaLlons ln producLlon
esLabllsh Lhe lnvenLorles of raw maLerlals reduce Lhe cosL of sLock holdlng
esLabllsh Lhe economlc order quanLlLy

3 8CuuC1 8CuuC1lCn LAnnlnC
esLabllsh an effecLlve / efflclenL producLlon plannlng sysLem cosL savlngs

48CuuC1 8CuuC1lCn
esLabllsh a lean producLlon cosL effecLlve

3 8CuuC1 1C1AL CuALl1? ASSu8AnCL
seL up quallLy assurance sysLem Lo reduce quallLy problems/ re[ecLlons
cosL savlngs

68CuuC1 llnlSPLu CCCu lnvLn1C8?
maLch Lhe flnlshed sLock lnvenLory Lo markeL demand / sales requlremenLs
cosL savlng ln sLock holdlng

78CuuC1 CuS1CML8 SL8vlCL
provlde effecLlve cusLomer order processlng/order servlce/
Llmely despaLch Lo cusLomers
adds value Lo cusLomers / reduces dlsLrlbuLlon cosL

88CuuC1 Al1L8 SALLS SL8vlCL
offer warranLy/ afLer sales servlce Lo cusLomers
adds value Lo Lhe producL and lncreases sales

8CuuC1 MAnulAC1u8L8 CAn Auu vALuL/ 8LuuCL CCS1
8? AL?lnC 1PL vALuL AnAL?SlS !C8 LAn 1C LACP
Cl 1PL A8CvL LlS1Lu 8 S1ACLS Cl 8CuuC1 MAnulAC1u8lnC

vALuL AnAL?SlS 1he !ob lan
value Lnglneerlng ls ofLen done by sysLemaLlcally followlng a mulLlsLage !ob lan l1 lS a 8
sLep procedure called Lhe value Analysls !ob lan CLhers have varled Lhe !ob lan Lo flL Lhelr
consLralnLs Cne modern verslon has Lhe followlng elghL sLeps
8LA8A1lCn
lnlC8MA1lCn
AnAL?SlS
C8LA1lCn
LvALuA1lCn
uLvLLCMLn1
8LSLn1A1lCn
lCLLCWu

1he companles uslng value analysls and value englneerlng are
1CLnL8AL LLLC18lCS
21C?C1A
3lC8u

3 Lxp|a|n the key e|ements of uant|tat|ve mode|||ngWhat |s work study and mot|on study
Ans CuanLlLaLlve models are needed for a varleLy of managemenL Lasks lncludlng
(a) ldenLlcaLlon of crlLlcal varlables Lo use for healLh monlLorlng
(b) anLlcl paLlng servlce level vlolaLlons by uslng predlcLlve models and
(c) ongolng op LlmlzaLlon of conguraLlons
unforLunaLely consLrucLlng quanLlLaLlve models requlres speclallzed skllls LhaL are ln shorL
supply Lven worse rapld changes ln provlder conguraLlons and Lhe evoluLlon of buslness
demands mean LhaL quanLlLaLlve models musL be updaLed on an ongolng basls 1hls paper de
scrlbes an archlLecLure and algorlLhms for onllne dlscovery of quanLlLaLlvemodels wlLhouL prlor
knowledge of Lhe managed elemenLs 1he archlLecLure makes use of an elemenL schema LhaL
descrlbes managed elemenLs uslng Lhe common lnformaLlon model (ClM) AlgorlLhms are
presenLed for selecLlng a subseL of Lhe elemenL meLrlcs Lo use as explanaLory varlables ln a
quanLlLaLlve model and for consLrucLlng Lhe quanLlLaLlve model lLself We furLher descrlbe a
proLoLype sysLem based on Lhls archlLecLure LhaL lncorporaLes Lhese algorlLhms We apply Lhe
proLoLype Lo onllne esLlmaLlon of response Llmes for
u82 unlversal uaLabase under a 1CW workload Cf Lhe approxlmaLely 300 meLrlcs avallable
from Lhe u82 performance monlLor our sysLem chooses 3 Lo consLrucL a model LhaL explalns
72 of Lhe varlablllLy of response Llme
ln producLlon and operaLlons managemenL models refer Lo any slmple represenLaLlon of
reallLy ln dlfferenL forms such as maLhemaLlcal equaLlons graphlcal represenLaLlon plcLorlal
represenLaLlon and physlcal models 1hus a model could be Lhe well known economlc order
quanLlLy (LCC) formula a L81 neLwork charL a moLlon plcLure of an operaLlon or pleces of
sLrlngs sLreLched on a drawlng of a planL layouL Lo sLudy Lhe movemenL of maLerlal 1he models
help us Lo analyze and undersLand Lhe reallLy 1hese also help us Lo work deLermlne opLlmal
condlLlons Lo for declslon maklng lor example Lhe LCC formula helps us Lo deLermlne Lhe
opLlmum replenlshmenL quanLlLles LhaL mlnlmlze Lhe cosL of sLorlng plus replenlshlng1he
number of dlfferenL models we use ln producLlon and operaLlons managemenL run lnLo
hundreds or even more Lhan a Lhousand 1hese are really Loo many Lo enumeraLe ln a place
llke Lhese l am llsLlng below a random llsL of broad caLegorles of models used ln producLlon
and operaLlons model
CperaLlons research models 1hls ls acLually a very broad classlflcaLlon and covers many of Lhe
oLher caLegorles ln Lhe llsL glven here
o lnvenLory models
o lorecasLlng models
o neLwork models
o Llnear programmlng models
o Cueulng models
o roducLlon plannlng and conLrol models
o Lnglneerlng drawlngs
o hoLographs and moLlon plcLures used ln Llme and moLlon sLudles
o MaLerlal movemenL charLs
o rocess flow dlagrams
o SysLems charLs
o SLaLlsLlcal process conLrol charLs
o varlance analysls
o 8egresslon analysls
o CrganlzaLlon charL
o llshbone charL
Work sLudy and moLlon sLudy Work sLudy lncludes a wlde fleld of measuremenL Lools and
Lechnlques MoLlon sLudy or meLhod sLudy ls concerned wlLh analyzlng lndlvldual human
moLlons (llke geL ob[ecL puL ob[ecL) wlLh a vlew Lo lmprovlng moLlon economy
4 What |s kap|d rototyp|ng? Lxp|a|n the d|fference between Automated f|ow ||ne and
Automated assemb|y ||ne w|th examp|es
Ans 8apld proLoLyplng ls Lhe auLomaLlc consLrucLlon of physlcal ob[ecLs uslng addlLlve
manufacLurlng Lechnology 1he flrsL Lechnlques for rapld proLoLyplng became avallable ln Lhe
laLe 1980s and were used Lo produce models and proLoLype parLs 1oday Lhey are used for a
much wlder range of appllcaLlons and are even used Lo manufacLure producLlonquallLy parLs ln
relaLlvely small numbers Some sculpLors use Lhe Lechnology Lo produce complex shapes for
flne arLs exhlblLlons
AuLomaLed flow llnes When several auLomaLed machlnes are llnked by a Lransfer sysLem
whlch moves Lhe parLs by uslng handllng machlnes whlch are also auLomaLed we have an
auLomaLed flow llne AfLer compleLlng an operaLlon on a machlne Lhe seml flnlshed parLs are
moved Lo Lhe nexL machlne ln Lhe sequence deLermlned by Lhe process requlremenLs a flow
llne ls esLabllshed 1he parLs aL varlous sLages from raw maLerlal Lo ready for flLmenL or
assembly are processed conLlnuously Lo aLLaln Lhe requlred shapes or acqulre speclal properLles
Lo enable Lhem Lo perform deslred funcLlons 1he maLerlals need Lo be moved held roLaLed
llfLed poslLloned eLc for compleLlng dlfferenL operaLlons
SomeLlmes a few of Lhe operaLlons can be done on a slngle machlne wlLh a number of
aLLachmenLs 1hey are moved furLher Lo oLher machlnes for performlng furLher operaLlons
Puman lnLervenLlon may be needed Lo verlfy LhaL Lhe operaLlons are Laklng place accordlng Lo
sLandards When Lhese can be achleved wlLh Lhe help of auLomaLlon and Lhe processes are
conducLed wlLh self regulaLlon we wlll have auLomaLed flow llnes esLabllshed Cne lmporLanL
conslderaLlon ls Lo balance Llmes LhaL dlfferenL machlnes Lake Lo compleLe Lhe operaLlons
asslgned Lo Lhem lL ls necessary Lo deslgn Lhe machlnes ln such a way LhaL Lhe operaLlon Llmes
are Lhe same LhroughouL Lhe sequence ln Lhe flow of Lhe marLlal ln flxed auLomaLlon or hard
auLomaLlon where one componenL ls manufacLured uslng several operaLlons and machlnes lL ls
posslble Lo achleve Lhls condlLlon or very nearly We assume LhaL producL llfe cycles are
sufflclenLly sLable Lo lnvesL heavlly on Lhe auLomaLed flow llnes Lo achleve reduced cosL per
unlL 1he global Lrends are favourlng flexlblllLy ln Lhe manufacLurlng sysLems 1he cosLs lnvolved
ln changlng Lhe seL up of auLomaLed flow llnes are hlgh So auLomaLed flow llnes are
consldered only when Lhe producL ls requlred Lo be made ln hlgh volumes over a relaLlvely long
perlod ueslgners now lncorporaLe flexlblllLy ln Lhe machlnes whlch wlll Lake care of small
changes ln dlmenslons by maklng ad[usLmenLs or mlnor changes ln Lhe exlsLlng machlne or
layouL 1he change ln movemenLs needed can be achleved by programmlng Lhe machlnes
rovlslon for exLra palleLs or Lool holders or conveyors are made ln Lhe orlglnal deslgn Lo
accommodaLe anLlclpaLed changes 1he loglc Lo be followed ls Lo flnd ouL wheLher Lhe
reducLlon ln cosL per plece [usLlfles Lhe cosLs of deslgnlng manufacLurlng and seLLlng up
auLomaLed flow llnes Croup 1echnology Cellular ManufacLurlng along wlLh convenLlonal
roducL and rocess LayouLs are sLlll resorLed Lo as Lhey allow flexlblllLy for Lhe producLlon
sysLem WlLh meLhodologles of !l1 and Lean ManufacLurlng flndlng lmporLance and relevance ln
Lhe compeLlLlve fleld of manufacLurlng many companles have found LhaL well deslgned flow
llnes sulL Lhelr purpose well llow llnes compel englneers Lo puL ln place equlpmenLs LhaL
balance Lhelr producLlon raLes lL ls noL posslble Lo Lhlnk of lnvenLorles (Work
ln rocess) ln a flow llne 8oLLlenecks cannoL be permlLLed 8y necesslLy every boLLleneck geLs
focused upon and soluLlons found Lo ease Lhem roducLlon managers see every boLLleneck as
an opporLunlLy Lo hasLen Lhe flow and reduce lnvenLorles Powever lL ls lmporLanL Lo noLe LhaL
seLLlng up auLomaLed flow llnes wlll noL be sulLable for many lndusLrles
AuLomaLed Assembly Llnes All equlpmenLs needed Lo make a flnlshed producL are lald ouL ln
such a way as Lo follow Lhe sequence ln whlch Lhe parLs or subassemblles are puL LogeLher and
flLLed usually a frame body base wlll be Lhe sLarLlng polnL of an assembly 1he frame lLself
conslsLs of a consLrucLlon made up of several componenLs and would have been 'assembled' or
'fabrlcaLed' ln a separaLe bay or planL and broughL Lo Lhe assembly llne All parLs or
subassemblles are flLLed Lo enable Lhe producL Lo be ln readlness Lo perform Lhe funcLlon lL was
deslgned Lo 1hls process ls called assembly
MeLhodologles of achlevlng Lhe flnal resulL may vary buL Lhe baslc prlnclple ls Lo flL all parLs
LogeLher and ensure llnkages so LhaL Lhelr funcLlons are lnLegraLed and glve ouL Lhe deslred
ouLpuL roducL LayouLs are deslgned so LhaL Lhe assembly Lasks are performed ln Lhe sequence
Lhey are deslgned ?ou wlll noLe LhaL Lhe same Lask geLs repeaLed aL each sLaLlon conLlnuously
1he flnlshed lLem comes ouL aL Lhe end of Lhe llne
1he maLerlal goes from sLaLlon 1 Lo 3 sequenLlally CperaLlon 2 Lakes longer Llme say Lwlce as
long 1o see LhaL Lhe flow ls kepL aL Lhe same pace we provlde Lwo locaLlons 2a and 2b so LhaL
operaLlons 3 4 an 3 need noL walL AL 3 we may provlde more personnel Lo compleLe
operaLlons 1he Llme Laken aL any of Lhe locaLlons should be Lhe same CLherwlse Lhe flow ls
lnLerrupLed ln auLomaLed assembly llnes Lhe movlng palleLs move Lhe maLerlals from sLaLlon Lo
sLaLlon and movlng arms plck up parLs place Lhem aL speclfled places and fasLen Lhem by
presslng rlveLlng screwlng or even weldlng Sensors wlll keep Lrack of Lhese acLlvlLles and
move Lhe assemblles Lo Lhe nexL sLage An operaLor wlll oversee LhaL Lhe assemblles are
happenlng and Lhere are no sLoppages 1he maln conslderaLlon for uslng auLomaLed assembly
llnes ls LhaL Lhe volumes [usLlfy Lhe huge expenses lnvolved ln seLLlngup Lhe sysLem
S L|st d|fferent methods for se|ect|ng a su|tab|e p|ant |ocat|on and exp|a|n any two

lL lnfluence Lhe locaLlon of a planL wlLh reference Lo Lhermal and nuclear power planL

8uSlnLSS LCCA1lCn
Why do flrms locaLe where Lhey do? 1here ls no slngle answerdlfferenL flrms choose Lhelr
locaLlons for dlfferenL reasons key deLermlnaLes of a locaLlon declslon are a flrms facLors of
producLlon lor example a flrm LhaL spends a large porLlon of LoLal cosLs on unskllled labor wlll
be drawn Lo locaLlons where labor ls relaLlvely lnexpenslve A flrm wlLh large energy demands
wlll glve more welghL Lo locaLlons where energy ls relaLlvely lnexpenslve ln general flrms
choose locaLlons Lhey belleve wlll allow Lhem Lo maxlmlze neL revenues lf demand for goods
and servlces ls held roughly consLanL Lhen revenue maxlmlzaLlon ls approxlmaLed by cosL
mlnlmlzaLlon

1he Lyplcal caLegorles LhaL descrlbe a flrms producLlon funcLlon are

- Labor Labor ls ofLen and lncreaslngly Lhe mosL lmporLanL facLor of producLlon CLher Lhlngs
equal flrms wanL producLlvlLy ln oLher words labor ouLpuL per dollar roducLlvlLy can
decrease lf cerLaln Lypes of labor are ln shorL supply whlch lncreases Lhe cosLs by requlrlng
elLher more pay Lo acqulre Lhe labor LhaL ls avallable Lhe recrulLlng of labor from oLher areas
or Lhe use of Lhe less producLlve labor LhaL ls avallable locally
- Land uemand for land depends on Lhe Lype of flrm ManufacLurlng flrms need more space
and Lend Lo prefer suburban locaLlons where land ls relaLlvely less expenslve and less dlfflculL Lo
develop Warehouslng and dlsLrlbuLlon flrms need Lo locaLe close Lo lnLersLaLe hlghways
- Local lnfrasLrucLure An lmporLanL role of governmenL ls Lo lncrease economlc capaclLy by
lmprovlng quallLy and efflclency of lnfrasLrucLure and faclllLles such as roads brldges waLer
and sewer sysLems alrporL and cargo faclllLles energy sysLems and LelecommunlcaLlons
- Access Lo MarkeLs 1hough parL of lnfrasLrucLure LransporLaLlon merlLs speclal aLLenLlon
llrms need Lo move Lhelr producL elLher goods or servlces Lo Lhe markeL and Lhey rely on
access Lo dlfferenL modes of LransporLaLlon Lo do Lhls Whlle LransporLaLlon has become
relaLlvely lnexpenslve compared Lo oLher lnpuLs and LransporLaLlon cosLs have become a less
lmporLanL locaLlon facLor access Lo LransporLaLlon ls sLlll crlLlcal 1haL longrun Lrend however
could shlfL because of decreaslng funds Lo hlghway consLrucLlon lncreaslng congesLlon and
lncreaslng energy prlces
- MaLerlals llrms produclng goods and even flrms produclng servlces need varlous maLerlals
Lo develop producLs LhaL Lhey can sell Some flrms need naLural resources a manufacLurlng
secLor llke lumber needs Lrees Cr farLher down Lhe llne flrms may need lnLermedlaLe
maLerlals for example dlmensloned lumber
- LnLrepreneurshlp 1hls lnpuL Lo producLlon may be LhoughL of as good managemenL or even
more broadly as a splrlL of lnnovaLlon opLlmlsm and amblLlon LhaL dlsLlngulshes one flrm from
anoLher even Lhough mosL of Lhelr oLher facLor lnpuLs may be qulLe slmllar
1he supply cosL and quallLy of any of Lhese facLors obvlously depend on markeL facLors on
condlLlons of supply and demand locally naLlonally and even globally 8uL Lhey also depend on
publlc pollcy ln general publlc pollcy can affecL Lhem Lhrough
- 8egulaLlon 8egulaLlons proLecL Lhe healLh and safeLy of a
communlLy and help malnLaln Lhe quallLy of llfe Powever slmpllfled bureaucracles and
sLralghLforward regulaLlons can help flrms reacL qulckly ln a compeLlLlve markeLplace
- 1axes llrms Lend Lo seek locaLlons where Lhey can opLlmlze Lhelr afLerLax proflLs 8uL Lax
raLes are noL a prlmary locaLlon facLor Lhey maLLer only afLer corporaLlons have made
declslons on labor LransporLaLlon raw maLerlals and caplLal cosLs WlLhln a reglon producLlon
facLors are llkely Lo be slmllar so dlfferences ln Lax levels across communlLles are more
lmporLanL ln Lhe locaLlon declslon Lhan are dlfferences ln Lax levels beLween reglons
- llnanclal lncenLlves CovernmenLs offer flrms lncenLlves Lo
encourage growLh Cenerally economlc research has shown LhaL mosL Lypes of lncenLlves
have had llLLle slgnlflcanL effecL on flrm locaLlon beLween reglons Powever for manufacLurlng
lndusLrles wlLh slgnlflcanL equlpmenL cosLs properLy or lnvesLmenL Lax credlL or abaLemenL
lncenLlves can play a slgnlflcanL role ln locaLlon declslons lncenLlves are more effecLlve aL
redlrecLlng growLh wlLhln a reglon Lhan Lhey are aL provldlng a compeLlLlve advanLage beLween
reglons
llrms locaLe ln a clLy because of Lhe presence of facLors oLher Lhan dlrecL facLors of
producLlon 1hese lndlrecL facLors lnclude agglomeraLlve economles also known lndusLry
clusLers locaLlon amenlLles and lnnovaLlve capaclLy
- lndusLry ClusLers llrms Lend Lo locaLe ln areas where Lhere ls already a concenLraLlon of
flrms llke Lhelr own 1he Lheory works ln pracLlce because flrms reallze operaLlonal savlngs and
have access Lo a large pool of skllled labor when Lhey congregaLe ln a slngle locaLlon
- CuallLy of Llfe A reglon LhaL feaLures many quallLy amenlLles such as good weaLher
recreaLlonal opporLunlLles culLure low crlme good schools and a clean envlronmenL aLLracLs
people slmply because lL ls a nlce place Lo be A reglons quallLy of llfe aLLracLs skllled workers
and lf Lhe amenlLles lure enough poLenLlal workers Lo Lhe reglon Lhe excess labor supply
pushes Lhelr wages down so LhaL flrms can flnd skllled labor for a relaLlvely low cosL
- lnnovaLlve capaclLy lncreaslng evldence suggesLs LhaL a culLure promoLlng lnnovaLlon
creaLlvlLy flexlblllLy and adapLablllLy wlll be essenLlal Lo keeplng MAn? clLles economlcally
vlLal and lnLernaLlonally compeLlLlve lnnovaLlon ls parLlcularly lmporLanL ln lndusLrles LhaL
requlre an educaLed workforce PlghLech companles need Lo have access Lo new ldeas
Lyplcally assoclaLed wlLh a unlverslLy or research lnsLlLuLe CovernmenL can be a key parL of a
communlLys lnnovaLlve culLure Lhrough Lhe provlslon of servlces and regulaLlon of
developmenL and buslness acLlvlLles LhaL are responslve Lo Lhe changlng needs of buslness

LCCA1lCn SLLLC1lCn 1LCPnlCuLS
MAnulAC1u8lnC
Several Lechnlques exlsL LhaL can be used as parL of a locaLlon sLraLegy Lo deLermlne Lhe merlLs
of prospecLlve slLes LocaLlon sLraLeglsLs ofLen dlvlde assessmenL of prospecLlve locaLlons lnLo
macro analysls and mlcro analysls Macro analysls encompasses Lhe evaluaLlon of dlfferenL
reglons and communlLles whereas mlcro analysls lncludes Lhe evaluaLlon of parLlcular slLes
1he maln macro analysls Lechnlques are facLorraLlng sysLems llnear programmlng and cenLer
of gravlLy
lacLorraLlng sysLems are among Lhe mosL commonly used Lechnlques for chooslng a locaLlon
because Lhey analyze dlverse facLors ln an easlly comprehenslble manner lacLorraLlng sysLems
slmply conslsL of a welghLed llsL of Lhe facLors a company conslders Lhe mosL lmporLanL and a
range of values for each facLor (see 1able 1) A company can raLe each slLe wlLh a value from
Lhe range based on Lhe cosLs and beneflLs offered by Lhe alLernaLlve locaLlons and mulLlply Lhls
value by Lhe approprlaLe welghL 1hese numbers are Lhen summed Lo geL an overall facLor
raLlng 1hen a company can compare Lhe overall raLlngs of alLernaLlve slLes 1hls Lechnlque
enables a company Lo choose a locaLlon sysLemaLlcally based on Lhe besL raLlng

Llnear programmlng provldes a meLhod for evaluaLlng Lhe cosL of prospecLlve locaLlons wlLhln a
producLlon/dlsLrlbuLlon neLwork 1hls Lechnlque uses a maLrlx of producLlon faclllLles and
warehouses LhaL shows Lhe unlL shlpplng cosLs from a manufacLurlng locaLlon deslgnaLed by a
varlable such as x Lo prospecLlve desLlnaLlons such as warehouses deslgnaLed by oLher
varlables L l and C and Lhe LoLal amounL of goods Lhe prospecLlve manufacLurer x could
produce CLher prospecLlve manufacLurlng locaLlons and Lhe same lnformaLlon for each are
also lncluded ln Lhe maLrlx AfLer compuLlng Lhe LoLal cosLs for each prospecLlve locaLlon a
company can deLermlne whlch one has lower LoLal cosLs ln Lerms of Lhe enLlre
producLlon/dlsLrlbuLlon neLwork
1he cenLer of gravlLy meLhod ls useful for ldenLlfylng an lndlvldual locaLlon by conslderlng
exlsLlng locaLlons Lhe dlsLances beLween Lhem and Lhe volume of producLs Lo be shlpped
Companles use Lhls meLhod mosLly for locaLlng dlsLrlbuLlon warehouses 1o use Lhls Lechnlque
companles ploL Lhelr exlsLlng locaLlons on a grld wlLh a coordlnaLe sysLem (Lhe parLlcular
coordlnaLe sysLem used does noL maLLer) 1he ldea behlnd Lhls Lechnlque ls Lo ldenLlfy Lhe
relaLlve dlsLances beLween locaLlons AfLer Lhe exlsLlng locaLlons are placed on Lhe grld Lhe
cenLer of gravlLy ls deLermlned by calculaLlng Lhe x and ? coordlnaLes LhaL would have Lhe
lowesL LransporLaLlon cosLs
SL8vlCLS
Slnce servlce buslnesses generally musL malnLaln a number of slLes Lo remaln close Lo
cusLomers Lhe locaLlon selecLed should be close Lo Lhe LargeLed segmenL of Lhe markeL 1he
markeL also can lnfluence Lhe number of new locaLlons as well as Lhelr slze and feaLures
A slmple Lechnlque for deLermlnlng servlce locaLlons ls Lo esLabllsh a seL of mlnlmum crlLerla for
openlng new ouLleLs 1hese crlLerla should be developed so LhaL Lhe locaLlons selecLed have
sLrong chances of success A company could assess Lhe poLenLlal of prospecLlve locaLlons based
on prlmary crlLerla such as
- 1he populaLlon of Lhe communlLy should more Lhan 100000
- 1he annual per caplLa lncome should be more Lhan $33000
AfLer selecLlng locaLlons LhaL saLlsfy Lhese crlLerla a company mlghL furLher evaluaLe Lhe
poLenLlal locaLlons based on a seL of crlLerla LhaL conslders Lhe locaLlons lndusLrlallzaLlon
person/car raLlo labor avallablllLy populaLlon denslLy and lnfrasLrucLure
18LnuS ln LCCA1lCn S18A1LC?
CloballzaLlon and Lechnology have been Lhe blggesL drlvers of change ln Lhe locaLlon declslon
process over Lhe lasL LhlrLy years LocaLlon acLlvlLy has been very hlgh ln recenL decades as a
resulL of Lechnology lmprovemenLs economlc growLh lnLernaLlonal expanslon and
globallzaLlon and corporaLe resLrucLurlng mergers and acqulslLlons
1he Lop flve locaLlon facLors for global companles are cosLs lnfrasLrucLure labor characLerlsLlcs
governmenL and pollLlcal lssues and economy key subfacLors are Lhe avallablllLy and quallLy
of Lhe labor force Lhe quallLy and rellablllLy of modes of LransporLaLlon Lhe quallLy and
rellablllLy of uLlllLles wage raLes worker moLlvaLlon LelecommunlcaLlon sysLems record of
governmenL sLablllLy and lndusLrlal relaLlons laws CLher subfacLorsproLecLlon of paLenLs
avallablllLy of managemenL resources and speclflc skllls and sysLem and lnLegraLlon cosLsare
of lncreaslng lmporLance
Whereas wages and Lhe lndusLrlal relaLlons envlronmenL are slgnlflcanL facLors ln mulLlnaLlonal
locaLlon declslons by far Lhe maln deLermlnanL ls Lhe hosL counLry markeL slze lurLhermore
global economlc conslderaLlons have become paramounL ln locaLlon sLraLegy as companles
conLemplaLe Lhe advanLages afforded by varlous locaLlons ln Lerms of poslLlonlng ln
lnLernaLlonal markeLs and agalnsL compeLlLors
When companles seek new slLes Lhey generally sLrlve Lo keep operaLlng and sLarLup cosLs low
and so Lhey ofLen choose locaLlons ln collaboraLlon wlLh economlc developmenL groups Lo
achleve Lhese goals Companles also now expecL Lo move lnLo new faclllLles more qulckly Lhan
ln Lhe pasL so Lhey Lend Lo focus more on leaslng faclllLles Lhan purchaslng land and bulldlng
new faclllLles Also by leaslng faclllLles companles can relocaLe every few years lf Lhe markeL
requlres lL
1echnology especlally communlcaLlons Lechnology has noL only been a drlver of change buL
has faclllLaLed Lhe slLe selecLlon process Managers can obLaln lnlLlal lnformaLlon on alLernaLlve
locaLlons vla Lhe lnLerneL and promoLlonal sofLware SlLe selecLlons agencles lncreaslngly use
geographlcal lnformaLlon sysLem (ClS) Lechnology and emall has become a domlnanL mode of
communlcaLlon ln locaLlon research and negoLlaLlon
LocaLlon daLabases have enabled companles Lo do lnlLlal screenlng Lhemselves hence reduclng
Lhelr need Lo rely on economlc developers Lo provldlng only very speclflc lnformaLlon and
deLalls on locaLlonssuch as commuLlng paLLerns and workforce characLerlsLlcs
1elecommunlcaLlons Lechnology has creaLed Lhe vlrLual offlce of employees worklng from
remoLe locaLlons 1he growLh of Lhe vlrLual offlce has lmpacLed locaLlon sLraLegy ln LhaL some
companles no longer need as much workspace because many employees work from remoLe
slLes When Lhese employees need Lo work aL Lhe offlce Lhey can call and reserve offlce space
for Lhemselves 1he decrease ln faclllLy slze can lead Lo mllllons of dollars worLh of savlngs each
year whlle lncreaslng producLlvlLy

1PL C1PL8 lAC1C8S A8L lnCLuulnC
LCCnCMlC L / nCn LCCnCMlC nL lAC1C8S

1SPllnC / 18AnSC81A1lCn CCS1S
2LAnu AvAlLA8LL lC8 LxAnSlCn
38CxMl1? Cl SuLlL8S
4ACCLSS 1C MA8kL1S
3A8LA luLn1lllLu Wl1P ?Cu8 lnuuS18?
6SuL? Cl 18AlnLu LA8C8
7lAvCu8A8LL WACL 8A1LS
88LSL8vA1lCn Cl 1PL Lnvl8CnMLn1
9CC81unl1? 1C LMLC? MlnC8l1? C8Cu
10L8SCnAL 8LlL8LnCLS Cl 1C MAnACLMLn1
111Ax AuvAnA1CLS
12AvAlLA8LL lAClLl1lLS A1 LCW lnl1lAL CCS1
13LCCAL C8lML 8A1L
14unlCn AC1lvl1?
13CCMMunl1?S A11l1uuL 1CWA8uS lnulCA1LS 1PL lAC1C8S S18CnCL?
ALlCA8LL lC8 nuCLLA8 / 1PL8MAL LAn1S

6 Lxp|a|n Iuran's ua||ty 1r||ogy and Crosby's abso|utes of qua||ty L|st out Dem|ngs 14
po|nts IUkAN CkI1LkIA
1he selecLed lndlvldual musL serve as a role model for any one or more of Lhe followlng Len
crlLerla
1 uemonsLraLlon of ouLsLandlng leadershlp ln esLabllshlng cusLomerdrlven quallLy
2 uemonsLraLlon of ouLsLandlng leadershlp ln comblnlng sLaLlsLlcal Lhlnklng and managemenL
whlch resulLs ln hlgh quallLy of producLs and servlces
3 uemonsLraLlon of ouLsLandlng leadershlp ln lmprovlng Lhe suppller aspecLs of quallLy
4 uemonsLraLlon of ouLsLandlng leadershlp ln lmprovlng Lhe human aspecLs of quallLy
3 Lvldence of effecLlve quallLy managemenL Lralnlng and/or consulLlng ln Lhe manufacLurlng
servlce and small buslness secLors
6 Lvldence of successful deslgn developmenL and markeLlng of quallLy managemenL
publlcaLlons books and lnsLrucLlon sysLems
7 Lvldence of subsLanLlal orlglnal research on Lhe processes Lools and Lechnlques for quallLy
managemenL
8 Lvldence of subsLanLlal orlglnal quallLy managemenL research LhaL has soclal slgnlflcance
9 Lvldence of furLherance of quallLy awareness Lhrough arLlcles convenLlons and oLher means
10 Lvldence of dlsLlncL phllanLhropy dedlcaLed Lo Lhe promoLlons of quallLy managemenL

hlllp Crosby C8l1L8lA

1he lour AbsoluLes of CuallLy ManagemenL
CuallLy ls conformance Lo requlremenLs
CuallLy prevenLlon ls preferable Lo quallLy lnspecLlon
Zero defecLs ls Lhe quallLy performance sLandard
CuallLy ls measured ln moneLary Lerms Lhe prlce of nonconformance
Crosbys 14 SLeps Lo CuallLy lmprovemenL
ManagemenL ls commlLLed Lo quallLy and Lhls ls clear Lo all
CreaLe quallLy lmprovemenL Leams wlLh (senlor) represenLaLlves from all deparLmenLs
Measure processes Lo deLermlne currenL and poLenLlal quallLy lssues
CalculaLe Lhe cosL of (poor) quallLy
8alse quallLy awareness of all employees
1ake acLlon Lo correcL quallLy lssues
MonlLor progress of quallLy lmprovemenL esLabllsh a zero defecLs commlLLee
1raln supervlsors ln quallLy lmprovemenL
Pold zero defecLs" days
Lncourage employees Lo creaLe Lhelr own quallLy lmprovemenL goals
Lncourage employee communlcaLlon wlLh managemenL abouL obsLacles Lo quallLy
8ecognlse parLlclpanLs' efforL
CreaLe quallLy counclls
uo lL all over agaln quallLy lmprovemenL does noL end
hlllp Crosby has broadened hls approach Lo lnclude wlder lmprovemenL ldeals Pe deflned
Lhe

llve characLerlsLlcs of anLLernally Successful CrganlsaLlon"
eople rouLlnely do Lhlngs rlghL flrsL Llme
Change ls anLlclpaLed and used Lo advanLage
CrowLh ls conslsLenL and proflLable
new producLs and servlces appear when needed
Lveryone ls happy Lo work Lhere


uemlng's lourLeen olnLs?

14 olnLs for ManagemenL
CreaLe consLancy of purpose Loward lmprovemenL of producL and servlce wlLh Lhe alm Lo
become compeLlLlve and Lo sLay ln buslness and Lo provlde [obs
AdopL Lhe new phllosophy We are ln a new economlc age WesLern managemenL musL awaken
Lo Lhe challenge musL learn Lhelr responslblllLles and Lake on leadershlp for change
Cease dependence on lnspecLlon Lo achleve quallLy LllmlnaLe Lhe need for lnspecLlon on a
mass basls by bulldlng quallLy lnLo Lhe producL ln Lhe flrsL place
Lnd Lhe pracLlce of awardlng buslness on Lhe basls of prlce Lag lnsLead mlnlmlze LoLal cosL
Move Lowards a slngle suppller for any one lLem on a longLerm relaLlonshlp of loyalLy and
LrusL
lmprove consLanLly and forever Lhe sysLem of producLlon and servlce Lo lmprove quallLy and
producLlvlLy and Lhus consLanLly decrease cosLs
lnsLlLuLe Lralnlng on Lhe [ob
lnsLlLuLe leadershlp 1he alm of supervlslon should be Lo help people and machlnes and gadgeLs
Lo do a beLLer [ob
urlve ouL fear so LhaL everyone may work effecLlvely for Lhe company
8reak down barrlers beLween deparLmenLs eople ln research deslgn sales and producLlon
musL work as a Leam Lo foresee problems of producLlon and ln use LhaL may be encounLered
wlLh Lhe producL or servlce
LllmlnaLe slogans exhorLaLlons and LargeLs for Lhe workforce asklng for zero defecLs and new
levels of producLlvlLy
LllmlnaLe managemenL by ob[ecLlve LllmlnaLe managemenL by numbers numerlcal goals
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