Нина Пусенкова.

Английский язык. Практический курс для решения бизнес-задач

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   Variety was recognised for its cost in that it complicated the manufacturing process. A sunroof on every Toyota Corolla was not only a marketing trick but a practical manufacturing improvement as having to make two different types of roof and two different types of headlining introduced potential problems.

   One point which we all understood was that our overall cycle times for our product dictated the level of work-in-progress (WIP). If we have an average lead time of four weeks for the components going through our welding department, then we will have an average WIP level of four weeks’ worth of production.
   The Japanese had addressed this in a number of ways, primarily in a fundamental redesign of factory layout and process flow. We learned that rather than have one area of the plant for presses, another full of lathes, another drills, and so on, they had switched to «focussed factories» where each area of the plant made a particular type of component. The unit making drive shafts had saws, followed by milling, turning, drilling and so on. These focussed units then brought the opportunity for multi-skilling and teamwork which helped to provide for productivity improvements – as well as significantly reducing the movement of materials through the factory.

   The kanban was then the final piece in the jigsaw. One of the major benefits of kanban is that it is very simple; it is also quite visible to all concerned and its logic is clear. It worked when all the issues preventing immediate response had been addressed and was the mechanism by which a build up of stock could be prevented. The yellow card attached to the container, or the floor space between two work benches, was the signal to initiate production of more of the item. If the assembly line stopped, then the subassemblies ceased being used and no more signals were generated. This contrasted markedly with the position in Western plants where an assembly line problem quickly led to a massive pile-up of inventory with items being mislaid and damaged.

   Few of the Japanese ideas for change in manufacturing were totally new. Frederick Taylor and Henry Ford had promoted many of them at the start of the 20th century. Where the Japanese did have much to teach us was in the total commitment of everybody to these new ways of working. We began to hear of stock levels being reduced to the point that every slightest problem immediately caused a major hold up, and this was actually treated as a reason for celebration. «A problem is a pearl, «we heard, meaning that finding a problem in a process was a good thing. Why? Because the problem was there and we didn’t know about it, but now we do, so we can fix it.

   As we understood more of JIT we learned that stock levels and lead times were not the only targets of the Toyota Production System and its followers in Japanese industry.
We began to realise that our aim must be to eliminate waste in all its forms. «What is waste?» we asked ourselves, and turned to people like Mr Ohno and Mr Shingo and were told that «waste is anything which does not add value.»
   We knew already of some wastes – for example, inspection adds no value. Why not just get the process right and then we needn’t carry out this activity? Similarly, why expedite our suppliers when, if we had chosen good partners and had a true partnership with them, this would not be needed? Why move items to a dedicated packing area if we could perform the packing in tandem with the assembly operation for the product and eliminate this movement? Why move parts from one end of a factory to another, and back again, if a little more thought in laying out the plant differently might take out this activity?
   So, JIT became Lean when it was recognised that parts arriving only when required and only in the quantities required is only a part of the story.
   Source: www.training-management.info, Ian Henderson

   1. Material Requirements Planning – планирование потребности в материалах
   2. Manufacturing Resource Planning – планирование производственных ресурсов
   3. stock n – акция; товарные запасы
   4. sophistication n – искушенность, изощренность, сложность
   sophisticated a – искушенный, изощренный, сложный
   5. lead time – время между размещением заказа и получением материалов от поставщика; время между началом производственного процесса и изготовлением первого изделия или всей партии
   6. inventory n – запасы
   7. just-in-time (JIT) – система «точно в срок»
   8. breakthrough n – прорыв
   9. highlight n – центр внимания, основной момент
   highlight v – освещать, выдвигать на первый план
   10. counterpart n – двойник, аналог, копия, дубликат; противная сторона
   11. batch n – партия, группа
   12. order n – приказ, распоряжение; заказ
   order v – приказывать, распоряжаться; заказывать
   13. set-up n – установка, наладка, система
   set up v – устанавливать, налаживать
   14. offset n – зачет, компенсация, возмещение
   offset v – зачитывать, компенсировать, возмещать
   15. workload n – рабочая нагрузка
   16. Master Production Scheduling – главный план-график производства
   17. accounting n – бухгалтерский учет
   accounting a – бухгалтерский
   18. accounting conventions – учетные правила
   19. compliance n – согласие, соответствие правилам, соблюдение (законов, правил)
   comply (with) v – соглашаться, соответствовать, соблюдать
   20. quality circles – кружки качества
   21. demand n – спрос, требование, потребность, нужда
   demand v – требовать
   demanding a – требовательный, сложный
   22. failure n – неудача, провал, банкротство; отказ (в работе), повреждение, срыв, авария
   fail v – потерпеть неудачу, провалиться, обанкротиться; отказать
   23. expediting n – связь с поставщиками, время исполнения (время для розыска и выполнения потерянного или неправильно направленного заказа)
   expeditor n – диспетчер, экспедитор
   expedite v – ускорять
   24. work-in-progress (WIP) – незавершенное производство, полуфабрикаты
   25. cycle time – время рабочего цикла
   26. layout n – схема расположения, компоновка, планировка, чертеж
   lay out v – располагать, размещать; выделять средства
   27. waste n – отходы, потери; расточительство, перерасход
   waste v – терять, тратить попусту, расточать
   28. dedication n – посвящение, преданность, приверженность
   dedicate v – посвящать
   dedicated a – посвященный, приверженный, преданный
   29. lean manufacturing – рациональное производство

   Exercise 1. Answer the following questions.
   1. What were the news from Japan that amazed the US manufactureres and scholars around 1980? 2. What was the company that pioneered the development of the Japanese manufacturing principles? 3. Why did the US companies manufacture components and parts in large batches? 4. Why did the US companies hold safety stocks? 5. What were the ideas of the US quality gurus that the Japanese successfully applied? 6. What other contributors to improved quality did the JIT approach consider? 7. What was the underlying principle of the quality circles? 8. Why were partnership relations with suppliers so important? 9. Why does it make economic sense to eliminate variety? 10. How did the Japanese shorten cycle times? 11. What was the basic idea of kanban? 12. Why were the Japanese companies happy when they discovered some problem in a process? 13. What is the key premise of the Lean Manufacturing?

   Exercise 2. An American car manufacturer hired a Japanese consultant to help enhance its competitiveness and cut costs. The advisor suggested applying some of the Japanese manufacturing principles. Invent a dialogue between the US vice-president for production and the foreign consultant. Use the following terms.
   batch size
   safety stocks
   long-term partnership relations with suppliers
   elimination of variety
   shorter cycle-times
   quality circles
   elimination of waste
   lean manufacturing
   commitment to excellence

   Exercise 3. Compare the American and Japanese management principles along the following lines.

   Exercise 4*. Fill in the blanks using terms given below.
   The Characteristics of the Japanese Approach to Business
   The system of…….. in the large organizations is called Nenko Seido. This means:
   – guaranteed employment until……… at 55;
   – promotion and……….. by seniority;
   – an internal labor market meaning………. from within the company;
   – extensive…….. with an emphasis on long-term behavior, attitudes and performance;
   – extensive……… package, which is regarded as a right and incorporates the needs of the workers’ family;
   – pay which starts off low, but rises dramatically with……….
   Nenko workers in Japan are the privileged………. This system only applies to male……., and there are many smaller non– Nenko organizations, which service and supply their big brothers. The role of the non– Nenko organizations in the economy is to provide the……….. and lower………, achieved by lower wages, absence of job security, pensions, sick leaves, welfare benefits and bonuses.
   The second distinctive characteristic of Japanese business is the fundamental importance of the group. Work is divided and allocated to groups, not individuals. The groups operate as specialists in dealing with………, but within the team the worker is regarded as a………… who will……… between jobs………. in company practices, rather than acquiring a specific technical skill.
   The third feature, which is typical of Japanese corporation, is a very tight centralized control based on…………, which are linked to detailed planning. Also stringently controlled from the center is the……….. of trainee managers, who will ultimately be trusted to carry the company forward into the future.
   Control is also indicative throughout the entire organization, particularly at an………… when applied to quality and technical……….. The concept of total quality management means a………. to a continuous improvement program and a strong…… on efficiency achieved by investment in the most modern plant and machinery available.
   Managers adopt………. style of leadership and supervision. The manager will be the representative of the group as well as a technical…….. Despite the………. role that the individual plays to the group, consultation and consensus are seen as vital before decisions are made and action taken. There is much interaction and evolution in the……….. of new ideas and directions. Slow……… and tolerance of operating in ambiguous situations is normal. This is the direct opposite to what might be found in some western organizations where direct and decisive action taken by individual leaders operating without consultation and consensus is the norm.
   The above characteristics can exist in the form they do because there is a strong corporate culture in every Japanese organization. This will be unique to the individual organization, but it is firmly………. in the culture and history of Japanese society as a whole. Key………. are obligation, duty, loyalty, cooperation and commitment to the company regarding it as the family to which the individual is bound.
   Source: Corporate Strategy Study Guide, IFA Services Ltd., 2004.

   embedded, focus, recruitment, development, trouble shooter, subordiante, employment, operational level, rotate, remuneration, key performance indicators, promotions, decision making, efficiency, appraisal, generalist, welfare, seniority, minority, staff, flexibility, operating costs, tasks, training, commitment, hands-on, values, retirement

   Exercise 5. Translate into English.

   В поисках качества
   В то время как американские менеджеры всегда говорили о том, что они «верят» в качество, что они «за» качество и всегда «боролись» за качество, большинство из них начинает понимать, что они ориентировались в основном на достижение некоего приемлемого уровня качества.
   Несмотря на лозунги и призывы, качество пока еще не стало для американцев первоочередной задачей. Большинство руководителей компаний, управляющих, правительственных чиновников и экономических стратегов пока не думают о проблемах качества постоянно и ежедневно.
   Главное в управлении качеством – не контроль, а бездефектная работа
   Высокое качество обеспечивается главным образом путем налаживания бездефектного производства, а не через контроль уже готовой продукции. Основная идея такого подхода состоит в том, чтобы все усилия направить на ликвидацию самой возможности появления брака в процессе производства и сборки. В результате возможные дефекты устраняются еще на промежуточных этапах, а не в готовом изделии. В американских компаниях такой подход не получил пока массового распространения. Во многих случаях непроизводительная работа по проверке качества и устранению дефектов, выпуску новых деталей взамен бракованных отвлекает от 15 до 40% производственных мощностей предприятия. Причем затраты на эти работы составляют от 20 до 40% на каждый доллар продаж.
   Одним из подходов, который дает возможность решить эти проблемы, является разработанная японцами система организации производства, получившая название «точно в срок».
   Базовая идея этой системы весьма проста. Материалы и детали должны поступать на каждое рабочее место по соответствующим запросам точно в тот момент, когда в них возникает необходимость, а не храниться в больших количествах возле каждого рабочего места.
   Главная цель такой системы состоит в постоянном совершенствовании процесса производства, ликвидации всех возможных потерь: времени, материалов и т. п.
   В настоящее время сотни американских компаний с успехом применяют эту систему на практике – от «Кэмпбелл» и «Уорнер Ламберт» до «Моторолы» и «Интел». Например, применение этой системы в компании «Харлей энд Дэвидсон» позволило высвободить 22 млн долл., которые ранее были фиксированы в материальных запасах.
   Использование такой системы позволяет также резко сократить расходы на аппарат управления, обнаруживать дефекты в ходе производства и устранять их сразу же на месте, обеспечить работу всех подразделений при минимальных затратах.
   Конечно, внедрение такой системы требует четко отлаженного механизма и ответственности каждого работника на своем рабочем месте. Необходимо также преодолеть психологическое сопротивление менеджеров, которые не привыкли работать без страховых заделов и запасов.
   Источник: выдержка из Грейсон Джексон К. младший, О’Делл Карла; «Американский менеджмент на пороге XXI века», http://ek.–lit.agava.ru

   Read and translate the text and learn terms from the Essential Vocabulary.

   If leadership is an art, then Welch has proved himself a master painter. Few have personified corporate leadership more dramatically. Fewer still have so consistently delivered on the results of that leadership. «The two greatest corporate leaders of the 20th century are Alfred Sloan of General Motors and Jack Welch of GE,» says Noel Tichy, a University of Michigan management professor. «And Welch would be the greater of the two because he set a new, contemporary paradigm for the corporation that is the model for the 21st century.»
   It is a model that has delivered extraordinary growth, increasing the market value of GE from $12 billion in 1981 to about $280 billion in 2000. No one, not Microsoft’s William Gates, not Walt Disney’s Michael Eisner, not even the late Coca-Cola chieftain Roberto Goizueta, has created more shareholder value than Jack Welch.
   Of course, GE’s success is hardly Welch’s alone. The company boasts what most headhunters believe to be the most talent-rich management in the world. Thus, Robert Wright has managed an astonishing turnaround at NBC, leading it to a fifth straight year of double-digit earnings gains in 1997 and a No.1 position in prime-time ratings. Nor did Welch’s magic work everywhere in GE. The huge appliance operation, for instance, saw operating earnings fall 39% in 1998, to $458 million.
   Welch has transformed what was an old-line American industrial giant into a highly competitive global growth engine. Welch has reshaped the company through more than 600 acquisitions and a forceful push abroad into emerging markets. How did Welch, who sat atop a business empire with $304 billion in assets, $89.3 billion in sales, and 276,000 employees in more than 100 countries, did it?
   He did it through sheer force of personality, coupled with an unbridled passion for winning the game of business and a keen attention to details many chieftains would simply overlook. He did it because he was a fierce believer in the power of his people.
   Welch’s profound grasp on General Electric stemmed from knowing the company and those who work for it like no other. There were the thousands of «students» he has encountered in his classes at the Croton-on-Hudson campus. Then there was the way he spent his time: More than half was devoted to «people» issues. But most important, he has created something unique at a big company: informality.
   Welch liked to call General Electric the «grocery store». «What’s important at the grocery store is just as important in engines or medical systems,» said Welch. «If the customer isn’t satisfied, if the stuff is getting stale, if the shelf isn’t right, it’s the same thing. You manage it like a small organization. You don’t get hung up on zeros.»
   You don’t get hung up on formalities, either. If the hierarchy that Welch inherited, with its nine layers of management, hasn’t been completely undermined, it has been severely damaged. Everyone called him Jack. Everyone could expect to see him hurry down an aisle to pick through the merchandise on a bottom shelf or to surprise an employee with a bonus.
   Making the company «informal» meant violating the chain of command, communicating across layers, paying people as if they worked not for a big company but for a demanding entrepreneur where nearly everyone knows the boss. It had as much to do with Welch’s charisma as it had to do with the less visible rhythms of the company – its meetings and review sessions – and how he used them to great advantage.
   When Welch became CEO, he inherited a series of obligatory corporate events that he transformed into meaningful levers of leadership. These get-togethers allowed him to set and change the corporation’s agenda, to challenge the strategies and the people in each of GE’s dozen divisions, and to make his opinions known to all.
   Welch believed that efficiencies in business were infinite because there were no bounds to human creativity. «The idea flow from the human spirit is absolutely unlimited,» Welch declared. «All you have to do is tap into that well. I don’t like to use the word efficiency. It’s creativity. It’s a belief that every person counts.»
   Not surprisingly, Welch embraced the largest corporate quality initiative ever undertaken. For years, he had been skeptical of the quality programs that were the rage in the 1980s. He felt that they were too heavy on slogans and too light on results. That was before he heard Lawrence Bossidy telling about the benefits he was reaping from a quality initiative he had launched at AlliedSignal. Bossidy had borrowed the Six Sigma program from Motorola and reported that the company was lowering costs, increasing productivity, and generating more profit.
   A Six Sigma quality level generates fewer than 3.4 defects per million operations in a manufacturing or service process. GE is running at a Sigma level of three to four. The gap between that and the Six Sigma level is costing the company between $8 billion and $12 billion a year in inefficiencies and lost productivity. To make the ideas take hold throughout GE required the training of so-called master black belts, black belts, and green belts. Welch launched the effort in late 1995 with 200 projects and intensive training programs, moved to 3,000 projects and more training in 1996, and implemented 6,000 projects and still more training in 1997. In 1998, Six Sigma delivered $320 million in productivity gains and profits, more than double Welch’s original goal of $150 million. «Six Sigma has spread like wildfire across the company, and it is transforming everything we do,» boasted Welch.

   The success of the program was evident in 1998 at Boca Raton, where Welch kicked off each year with a meeting for the top 500 executives. That year, 29 managers spoke about their Six Sigma projects describing how they used new ideas to squeeze still more profit out of the lean machine that is GE. One after another explained how quality efforts cut costs and mistakes, enhanced productivity, and eliminated the need for investment in new plant and equipment.
   William Woodburn, who headed GE’s industrial diamonds business, was one of the 1998 heroes at Boca. In just 4 years, Woodburn had increased the operation’s return on investment fourfold and halved the cost structure.
   Employing Six Sigma ideas, he and his team have squeezed so much efficiency out of their existing facilities that they believed they have eliminated the need for all investment in plant and equipment for a decade. Some 300 other managers from GE have visited the plant to learn directly how Woodburn has done it.
   But the main event was Welch’s wrap-up comments. Even though GE had just ended a record year, with earnings up 13%, Welch wanted more. Most CEOs would give a feel-good, congratulatory chat. But Welch warned the group that it would face one of the toughest years in a decade. It’s no time to be complacent, he said, not with the Asian economic crisis, not with deflation in the air.
   Then, the ideas tumbled out of him for how they can combat deflation. «Don’t add costs,» he advised. «Increase inventory turns. Use intellectual capital to replace plant and equipment investment. Raise approvals for price decisions.»

   Welch was uncommonly conscious of the signals and symbolism of leadership. His handwritten notes sent to everyone from direct reports to hourly workers possessed enormous impact, too. Moments after Welch lifted his black felt-tip pen, they were sent via fax direct to the employee. Two days later, the original arrived in the mail.

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