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Lean production techniques (Just in time (Disadvantage (High dependency on…
Lean production techniques
Just in time
Disadvantage
High dependency on suppliers to meet delivery and quality standards
Suppliers must be willing to participate Increase in order processing costs
Dangers of lost sales
Less time for quality control on arrival of materials
Increased ordering and administration costs
May lose bulk-buying discounts
Increased chance of transport failures
Increase in suppliers’s transport costs
Increased volume of traffic on road
Advantage
Savings on purchase and shortage costs
Less stock wastage
Improves cash flow(less tied up)
Can respond to changes in demand
Stock exactly matches production
Close ties with suppliers established
Kaizen Production
Advantage
Disadvantage