a. Discuss two ways in which Lean production at Portakabin leads to more efficient use of resources. (6 marks)

b. What would you recommend to the Portakabin management to maintain proper quality control? (6 marks)

c. Discuss and explain in detail, how Lean, Just-In-Time (JIT) production and Waste reduction methods at Portakabin could be applied to another organisation with which you are familiar. (6 marks)

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Introduction Meeting ISO 14001 shows that Portakabin also has a well Portakabin is an international company. It produces some of the organised environmental management system. An most advanced building systems available. The company is part environmental management system. of the 700 million turnover Shepherd Group. The Shepherd The emphasis on quality can be illustrated by the Portakabin Group is one of the largest family-owned companies in the Lilliput products. Lilliput Children's Centres are designed to be European building industry and employs 3,500 people. It focuses child-focused. They meet the tough safety and care standards on three main areas: that have been created to protect children: Manufacturing Construction The Children's Centres provide a resource for the whole community Property They can be built in half the time it takes to build using Donald Shepherd, the founder of Portakabin, came up with the traditional methods idea of stand-alone re-locatable buildings in the 1960s. Since Multi -functional rooms can be used as kitchens, crche that day, only buildings produced by Portakabin can be called facilities, and training rooms as well as nurseries. Portakabin buildings. Portakabin uses modular buildings. This This contrasts with the much slower process of a traditional means they are made up of one or more modules that are building with bricks and mortar. These buildings take far longer constructed in a factory environment. These are the linked to construct and building work may be delayed, for example, by together to form multi-purpose buildings. poor weather Lean production Just-in-time production A lean production is an approach to production that seeks to Just-in-time is perhaps the best-known method utilised within a minimise waste and inefficiency. In short, it means doing more lean production environment. Holding stock adds to business with less. A lean company will make the very most of its costs in a number of ways: resources. Lean production is based on the principle that any use of resources that do not create value for the consumer is Firms have to pay for the storage space where stocks are held. 'waste. This case study focuses on how Portakabin uses lean Cash is tied up in stored stocks rather than allowing methods to ensure it produces a quality product that gives value working capital to be used more efficiently. to the customer. Regulations or customer requirements may change Quality is a top-level objective for the company, therefore, which could render current stocks unusable. Portakabin uses a Quality Management System. The purpose Any defects in large quantities of stock may cause costs of this is to make sure that every aspect of what the company of rework does is designed to give customers what they want, for example, With just-in-time, the demand for new buildings pulls' supplies a safer learning environment or a more inspiring office. Everyone through the system. This is a very important business principle. who works for Portakabin is encouraged to suggest ways of When demand increases Portakabin orders and builds new improving production. New ideas bubble up from employees at component supplies, rather than having these in stock just in every stage. For example, an employee in stores may have a case'. For example, the Portakabin Ultima range consists of good idea about how to manage stock more effectively. high-quality workplaces for up to 1,000 people. In order to meet Everyone is therefore working to improve quality and give better the demand from businesses for these buildings, Portakabin only value to customers. Portakabin is approved to meet the holds the stocks it needs for orders in process. This reduces International Standards ISO 9001 and ISO 14001. costs and ensures that the components ordered specifically to meet the requirements of the individual businesses. In order to gain these awards, companies must prove their achievements to International Standards Organisations. Being Detailed information technology systems are used to manage accredited to International Standards tells customers that an the flow of production. These record supplies at every stage of organisation meets the tough guidelines set by awarding bodies. production to ensure components are available exactly when Meeting ISO 9001 shows that Portakabin has a Quality required. Good relationships with suppliers are also necessary Management System which among other things ensure that as any delay in the delivery of raw materials can hold up the it has a documented set of procedures for all key entire production process. JiT also helps the internal Portakabin processes in the business and that these processes are production process by providing components only when needed checked for efficiency by the next stage of production. outputs are checked for defects and put right where necessary Reducing waste The Portakabin lean production process encourages waste reduction. Building in a modular way is a lean process. The off- . . site construction and installation of completed and fitted out traditional construction industry average of 63% on time modules mean that fewer workers are required on-site and there and 49% on the budget is less transport needed. Portakabin has been able to reduce the speed of construction. Build times are up to 50% faster volume of waste sent to landfill by 60% over the last three years. than those in traditional building projects This has been achieved by: quality control. The Portakabin Quality Management Systems and use of lean manufacturing techniques 1. Cutting out waste from the manufacturing system. guarantee high quality at every stage of production. Portakabin has thought carefully about how it can improve design to reduce waste in manufacturing. Examples of how this Environmental benefits has been achieved include: There are a number of important environmental benefits, the clever design of the modules. This maximises the including: use of standard width materials and minimises cutting better thermal performance. Tests carried out on the to fit Ultima buildings show that they exceed air permeability re-use of materials, for example, door and window requirements by 70% meaning that the buildings have shapes cut out from insulated wall panels are re-used minimal air leakage and are therefore thermally efficient for floor insulation ozone-friendly materials. The insulation materials used changes in materials used. For example, a new type of in the walls, roof and floors have an Ozone Depleting insulating foam has reduced material use by 10% Potential (ODP) of zero meaning that their steel beams are supplied to the factory already cut to manufacturing process does not harm the ozone layer the precise length required reduced noise and pollution. Fewer vehicle movements the boards used for floors in Portakabin modules are to construction sites minimise traffic pollution pre-sized. No trimming is required. As a result, no wood recycling of materials. The buildings are constructed in particles or dust is created. sections. Later they can be taken apart in simple steps. The steel is 100% recyclable so 96% of the total 2. Recycling waste building is recyclable. The Portakabin Group recycles 65% of waste generated in off- site manufacturing: Social benefits Staff are trained always to think about recycling. For There are also benefits to the wider community. For example: example, they learn to use colour coded bins for improved health and safety. Factory-based different types of waste. Recycling in a Portakabin construction is much safer than a traditional factory is much easier to manage than it would be on a construction site building site. there is far less noise, lorry movements and other Portakabin has set up waste management teams. nuisance factors to local communities. These are made up of a production manager and waste There are some potential drawbacks of lean production. For contractor. A permanent trainer works for the company example, everyone involved in supplying the new buildings is and employees are regularly given refresher courses to dependent on the previous stage of production. Delays in update them on new ideas. deliveries of stock when using a Just-in-Time system can affect Pallets used for transporting Portakabin products are the next stage. Adhering to quality standards can take extra time recycled at every stage of the supply chain. and people which all add costs to businesses. However, if managed carefully, the benefits of adopting a lean approach to Benefits of lean production production far outweigh the drawbacks. Lean production can be seen as providing a win/wintwin situation. Conclusion Portakabin provides solutions to help other organisations to Financial benefits manage their changing accommodation requirements. Its Portakabin production methods reduce the cost of constructing modular buildings are put together using lean production high-quality building projects. The lead time between a methods. Lean processes provide an environmentally-friendly customer placing an order and the end product being ready is approach in a world of scarce resources. Materials are used much shorter through the use of the latest technologies under more effectively. Time is used more efficiently. Less waste is controlled conditions. The main financial benefits include: generated at every stage of lean production. Portakabin modular predictable construction. The construction is factory buildings can be put up very quickly. Problems associated with based soitis not disrupted by weather conditions or site conventional new buildings such as delay or overspending are related problems. 99.6% of Portakabin projects are eliminated. The net effect is a win/win/win situation for delivered on time and on budget. This compares with a Portakabin, its customers and the environment