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The Lean production:An approach to production that aims to minimise waste.
The Lean production:An approach to production that aims to minimise waste.
Advantage
Workers operate in teams cheaper than investing in new resources and motivates
Uses business knowledge to improve production.
Disadvantage
Unwelcome pressure on staff to keep coming up with improvements
It is an approach to production that aims to achieve change from a series of small steps.
All workers are encouraged to think continually about ways to improve the product and the process of making it.
Kaizen: CONTINUOUS IMPROVEMENT
What is the impact of a business using lean production technique?
affect the pricec
an economic loss
the higher cost of material
high administration costs
affect the production
the business might have less control on the quailty
the production relies on suppliers too much
negative aspect
postive aspect
decrease the waste
reduce the labor cost
more efficient and high productivity
make the business more competitive
Just In Time (JIT)
Advantages
Savings on purchase and storage costs
Less stock wastage
Improves cash flow (less tied up)
Production delays prevented
Stock exactly matches production
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 Increase in order processing costs
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
The success of JIT depends on:
reliable suppliers
Good quality control procedures
Access to a supply of skilled workers