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Answer the following questions for Part A:

1. What is meant by lean production? Describe two ways in which lean production at Portakabin leads to a more efficient use of resources. (12 marks, 300 words) Lean production, as the name suggests involves producing goods and services while stripping out waste. As a result there is no 'fat' involved in production. Lean production is efficient and hence likely to be profitable. There are many advantages for such method include; waste is substantially reduced or eliminated, costs fall leading to higher profits, the work area is cleaner, less cluttered, and easier to operate in, there is less damage to equipment, and stocks and there are fewer accidents at work.

The benefits of lean production Financial Predictable construction time saves labour costs Shorter lead time - gives happy customers Quality control less waste, rework, unsatisfied customers Environmental Buildings 96% recyclable Better at retaining heat Social Reduced noise and pollution nuisance for communities Improved health & safety. It helps to reduce waste In manufacturing process Modules completed and fitted out off site Fewer workers and less transport required Use of standard width or pre-sized materials Re-use of door and window cutouts Recycling waste Color coded bins for collection of different types of waste Waste management teams to look for new ideas Volume of waste to landfill reduced by 60% over 3 years. While the main financial benefit include predictable construction where the weather condition cant effect on the operation because of the factory based. 99.6% of Portakabin projects are delivered on time and on budget. Also; lean production help the company to finish its projects on time as it can build up 50% than traditional one. Another benefit is the quality control where the

companys quality management system use lean manufacturing method to produce high quality at every stage of operation.

2. Explain how just-in-time production would operate in delivering and assembling a new Lilliput Childrens Centre. (15 marks, 300 words) Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Just in time help in design Lilliput Childrens Centres because the project will perform only in half time than traditional method, moreover there are Multi-functional rooms can be used as kitchens, crche facilities, and training rooms as well as nurseries. Moreover; the Lillput children project system are designed to be child-focused. They meet the tough safety and care standards that have been created to protect children: where the Childrens Centres provide a resource for the whole community. Just-in-time (JIT) Just-in-time Keeps down costs of stock or raw materials Less storage space needed Releases working capital Customer demand pulls orders through system Ensures orders exactly meet customer requirements Problems may be discovered early and save rework Portakabins information technology systems record available supplies Ensures required components ordered in time to meet demand The main advantages for just in time are lower stock holding means a reduction in storage space which saves rent and insurance costs, as stock is only obtained when it is needed, less working capital is tied up in stock. There is less likelihood of stock perishing, becoming obsolete or out of date, avoids the build-up of unsold finished product that can occur with sudden changes in demand. Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time.

3. Evaluate the impacts on Portakabin of using lean production. (15 marks, 400 words) The use of method study in the company will be able to identify the best way of handling and scrutinizing the means of production in a company so as to make them efficient . It 's used in improving the quality work of the company generally in all the activities executed not excluding the daily operations which are repetitive . The method study will be used by the company in coming up with the best techniques which are appropriate in the execution of the company operations . This involves the selection of the operations which need to be done or studied . The other way is have detailed records of the company operations . The rec information should be studied in details so as to come up with the best changes which should be made . The study will therefore bring out the issues which are to be developed and installed so as to bring the relevant system in place so as to effective execute its operations . The new system which has been installed should be well maintained in a proactive way so as to ensure that the operations are not affected (Glossop , 2007 Moreover; the system which is used by the Portakabin Company is the one which has great advantages than any other system . The quality management system offers great advantages to the company than the use of the quality control system . The management system ensures that the buildings constructed are permanent and longer lasting without any effects or measures which will make the building be under any issues which relates to the poor maintenance and its life . The system also ensures that the buildings are of the current standards which ensure that it can only be relocated and are under the modular technique. Moreover lean production help the company to reduce wastes through recycling of materials. The buildings are constructed in sections. Later they can be taken apart in simple steps. The steel is 100% recyclable so 96% of the total building is recyclable. Moreover; Portakabin established team for waste management formed by production manager and waste contractor. They give regularly training courses to update them with new ideas.

Part B: Innovation
Using an example of an innovative business organization of your choice, describe why and how this organization is innovative. (42 marks, 1000-1500 words) Innovation consider the heart of any market, it can define as something tangible and new ,that use new knowledge to created something new . so we can obvious it in services or a piece of equipment which are useful it company have the potential to enable people to be do things in different and better ways , this mean that do things which they would like to do but could not have done before .also the useful appearances if they can satisfy a need or desire which would otherwise go unmet . but innovation cannot always be put to an immediate beneficial use same what happen in Intel in 1972 Intel invented the microprocessor ,however , Intel did not derive any benefit from it is invention until the lat 1980 and 1990 . It was not enable to put its invention to a predicative commercial use immediately and did not reap the benefits until it could . another example , it the wheel had not been invented many years ago , people would not had been able to benefit forms of transport which incorporate the wheel . We can not forget mention that invention can also have negative effect for example pollution as a result of emission from motor cars .We can say that invention is defend as :" a new way of doing things that is commercialize and lead benefit an organization to reduces the cost and increasing the effectiveness of products or services products . (Fowle,W, (2002,) Technology cycles and innovation are two useful phenomena that can be used to explain how competitive advantage of companies can be maintained over time. Technology cycle can be mean as the period of time between the birth or introduction of a new technology and when it is replaced by a newer and substantially better technology. (Fowle,W, (2002,)Technology cycle occurs whenever there is major advance in the knowledge, tools and techniques in a field. Innovation is the successful implementation of novel and useful ideas. Innovation is connected to technology cycle in the way that it forms the trigger to effect the technological discontinuity that replaces the old technology with the new technology.( Robert D. Willig,(2003). On other hand Technology cycles are made up of alternating periods of alternating periods of technological variation , competitive selection, and retention . also Technological discontinuities initiate technology cycles, they are rare , unpredictable events triggered by

scientific advance or through the unique combination of existing technology. Technological discontinuities rupture existing incremental innovation patterns and spawn a period of technological ferment in which competing technological variants vie for market acceptance. Such periods of technological ferment involve competition between existing versus new technology a well as competition between variants of the existing technology .( Blundell, R., Griffith, R. and Van Reenen, J. (1999))

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Because the high-k gate dielectric is not compatible with today's silicon gate electrode, the second part of Intel's 45nm transistor material recipe is the development of new metal gate materials. While the specific metals that Intel uses remains secret, the company will use a combination of different metal materials for the transistor gate electrodes.

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The combination of the high-k gate dielectric with the metal gate for Intel's 45nm process technology provides more than a 20 percent increase in drive current, or higher transistor performance. Conversely it reduces source-drain leakage by more than five times, thus improving the energy efficiency of the transistor.

Intel's 45nm process technology also improves transistor density by approximately two times that of the previous generation, allowing the company to either increase the overall transistor count or to make processors smaller. Because the 45nm transistors are smaller than the previous generation, they take less energy to switch on and off, reducing active switching power by approximately 30 percent. Intel will use copper wires with a low-k dielectric for its 45nm interconnects for increased performance and lower power consumption. It will also use innovative design rules and advanced mask techniques to extend the use of 193nm dry lithography to manufacture its 45nm processors because of the cost advantages and high manufacturability it affords. .( Blundell, R., Griffith, R. and Van Reenen, J. (1999)) Also Intel applying , there is radical innovation. that is a game changer. In product terms, it is a radical new product. also in Incremental innovation that Intel is making great progress at creating PC-grade, mobile processors that scale down to devices. Intel is pinning great hopes on the Silverthorne family leading the way. .( Blundell, R., Griffith, R. and Van Reenen, J. (1999)) Intel is the first to implement an innovative combination of new materials that drastically reduces transistor leakage and increases performance in its 45nm process technology. The company will use a new material with a property called high-k, for the transistor gate dielectric, and a new combination of metal materials for the transistor gate electrode. "The implementation of high-k and metal materials marks the biggest change in transistor technology since the introduction of polysilicon gate MOS transistors in the late 1960s," said Intel Co-Founder Gordon Moore. Transistors are tiny switches that process the ones and zeroes of the digital world. The gate turns the transistor on and off and the gate dielectric is an insulator underneath it that separates it from the channel where current flows. The combination of the metal gates and the high-k gate dielectric leads to transistors with very low current leakage and record high performance. Furthermore , Modular innovation ,Intel Corporation executives today outlined four imperatives for bringing all-day, anytime and anywhere wireless mobile PC computing closer to reality. These imperatives include new mobile PC platform capabilities, industry collaboration to drive all-day battery life, optimizing software applications for mobile computing, and the evolution of one smart, mobile, modular networking infrastructure. .( Blundell, R., Griffith, R. and Van Reenen, J. (1999))

Penryn Family Will Bring More Energy Efficient Performance The Penryn family of processors is a derivative of the Intel Core microarchitecture and marks the next step in Intel's rapid cadence of delivering a new process technology and new microarchitecture every other year. The combination of Intel's leading 45nm process technology, high-volume manufacturing capabilities, and leading microarchitecture design enabled the company to already develop its first working 45nm Penryn processors. The company has more than 15 products based on 45nm in development across desktop, mobile, workstation and enterprise segments. With more than 400 million transistors for dual-core processors and more than 800 million for quad-core, the Penryn family of 45nm processors includes new microarchitecture features for greater performance and power management capabilities, as well as higher core speeds and larger caches. The Penryn family designs also bring approximately 50 new Intel SSE4 instructions that expand capabilities and performance for media and high-performance computing applications.( Blundell, R., Griffith, R. and Van Reenen, J. (1999))

At the end Architectural Intel also detailed its latest products for wireless access including a complete roadmap of integrated processors for the smart handheld client space, and a new chipset codenamed "Rosedale" for designing cost-effective WiMAX subscriber stations and residential gateways.( Esther Baldwin ,(2008))

References
Robert D. Willig,(2003). Moores Law Intelwww.intel.com/technology/mooreslaw/ . Blundell, R., Griffith, R. and Van Reenen, J. (1999), Market share, market value and

Access Date on 6 March 2010 innovation in a panel of British manufacturing firms, Review of Economic Studies, access ,March , 24,2010.

Esther Baldwin ,(2008) http://blogs.intel.com/technology/ . Inside Innovation at Intel.


Cameron, G. (1996), Catchup and leapfrog between countries mimeograph,

Access Date on 8 March 2010.


access date 22,March 2010. E-library:

http://www.escholarship.org/editions/search? identifier=ark:/13030/ft8j49p1d9;smode=denied;style=eschol;brand=eschol;ip-ignore=212.43.12.2, Access Date, March 25, 2010.

https://web.ebscohost.com/ehost/visual?vid=1&hid=13&sid=510f77e5-d522-458f-9f9f66a50c719b16%40sessionmgr13, Access Date, March 24, 2010 at: 3: 04