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Lean production (disadvantages (Increased volume of traffic on road,…
Lean production
disadvantages
Increased volume of traffic on road
Increased chance of transport failures
Increase in suppliers’ transport costs
May lose bulk-buying discounts
Increased ordering and administration costs
Less time for quality control on arrival of thematerials
Danger of lost sales
Suppliers must be willing to participate Increasing in order processing costs
High demanency on suppliers to meet delivery and thequality standards
advantages
Less stock wastage
Production delays prevented
Saving on purchase and storage costs
Can response to changes in demand
Improve cash flow
Close ties with suppliers established
Stock exactly matches production
Kaizen
advantages
Workers operated in teams cheaper than investing in new resources and motivates
using business knowledge to improve production
disadvantages
unwelcome pressure on staff to keep coming up with improvements
Just in time
The success depends on
Good quality control procedures
reliable suppliers
Access to a supply of skilled workers