Labour productivity = output (over a period of time) ÷ Number of employees

As employees become more efficient, the amount of output per employee will rise, the cost if of producing will fall.

Lead time is the margin of time between the date when the stock obtain and the date when it is sold on

Cut down on waste, reduce time and it takes for the product to develop and cut out activities that don't add value for customers

Overproduction: Making more than you can sell in a period of time.

Waiting: When goods are not being processed and storage costs occur as well as employees not being engaged.

Defects: Any faults and error means product need to be inspected or fix.

Over-processing: Complex machines being use for simple task.

Transportation: Moving goods around necessary or in a small quantities, too much handling also cause damage.

Motion: Employees having to move far to do different bits of the job.

Unnecessary inventory: use up to much place and gets in the way of productive system.

Responsibility are giving to workers to improve productions for identify and suggest ways to improve the production. It is also a way to motivate employees by trusting them when the improvements come from the workers themselves.

Reduce the stock of materials by the deliver must be in time to be made and goods must be deliver just in time to be sold.

increase productivity, reduce amount of space needs for production process and reduce work-in-process and improve factory layout which allow some jobs to combine and free up employees to carry out other jobs.