Lean Production

Lean Production The minimisation of waste and costs in the production process. It involves a number of strategies, including: Just-In-Time Cell Production Kaizen Total Quality Management

Lean production Just in time - carefully scheduling the arrival of materials and components to the production process in small quantities as they are required. reduces the cost of stockholding and the space required. Cell Production– involves splitting a production process into sizeable steps, each of which becomes the responsibility of a team of employees. Team members are multi-skilled to make the team more flexible. Encourages interaction and makes contribution to speed, job satisfaction and motivation

Lean production Total quality management (TQM) – building ‘culture of quality’ which influences the attitudes and actions of every employee. Can be a slow process where shifts in management style and employee motivation are required (being responsible for quality of own work) Kaizen (TQM approach) – means continuous improvement, typically drawing ideas from everyone for small improvements and constantly looking for better ways to do things. It emphasises getting things ‘Right first time’ high quality – please customers and earns reputation for reliability Minimises rejects saves costs

Quality Control Effective lean production can reduce the need for Quality control – checking finished products for defects It moves a business towards more of a Quality Assurance system – with the entire production staff being responsible for quality.

Competitive advantage Main advantages of lean production are: reduction in waste Concern for quality reduces rejects and change of faults Ability to make changes quickly Minimising waste will lead to falling average costs – which could be passed on as lower prices These all give source of competitive advantage

Limitations of lean productions lean production is disrupted if deliveries fail Workers need commitment and managers have to be ready to delegate, share and to trust

Exam style questions pg60