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Lean production (Kaizen production (Advantage (Workers operate in teams…
Lean production
Kaizen production
CONTINUOUS IMPROVEMENT
Advantage
Workers operate in teams cheaper than investing in new resources and motivates
Use business knowledge to improve production
Disadvantage
Unwelcome pressure on staff to keep coming up with improvements
Just in time
a business only makes an item when there is a customer for it
Advantage
Improves cash flow (less tied up)
Stock exactly matches production
Production delays prevented
Less stock wastage
Savings on purchase and storage costs
Can respond to changes in demand
Close ties with suppliers established
Disadvantage
High dependency on suppliers to meet delivery and quality standards
Suppliers must be willing to participate
Danger of lost sales
Less time for quality control on arrival of materials
Increased ordering and administration costs
May lose bulk-buying discounts
Increase in suppliers’ transport costs
Increased chance of transport failures
Increased volume of traffic on road
Aims to minimize the waste
