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lean production (JIT (drawbacks (minimal stock, has to be right first time…
lean production
JIT
inputs only arrive when needed in prod
complex prod schedule
close cooperation w suppliers
customer orders determine what is produced
"pull" system
drawbacks
minimal stock
has to be right first time
reliant on suppliers
delays if transport is long
no spare finished product
complex, specialist stock systems
benefits
reduction in storage space
saves rent & insurance costs
less working capital
less stock obsolescence
less time spent checking
minimising stock holding
kaizen
continuous improvement
constant changes
many small changes
easier to implement
employee participation
take ownership for work
improve motivation
decentralised
simultaneous engineering
launch +develop products fast
project management
together in parallel not series
benefits
new products to market quickly
charge a premium price
better profit margin
recoup R&D costs
staff commitment
involving all business functions
competitive advantage
brand loyalty
time-based management
reduce the level of wasted time
benefits
quicker responses
meet changing markets
meet customer needs
reduced lead times
faster product development
reduction in waste
greater efficiency
requirements
flexible prod. methods
change products quickly
change volumes/runs
trained employees
multi-skilled staff
trust
cell production
prod. process split into cells
benefits
improved communication
motivation
workers multi-skilled
workers adapt to the needs
responsibility
quality improvements & ownership
drawbacks
invest in new materials
may not allow other firms to use machinery
might not be worthwhile
may not yield enough savings
needs trust or will fail
recruitment must approve
allocation of work has to be efficient