1. Lean Production

2. Lean production
Lean production refers to the range of measures that can be put in place in the workplace to help reduce waste. Although traditionally used in manufacturing, lean principles can equally be used in service industries.

3. Lean production concepts
Cell production
Just-in-time stock control
Kaizen (continuous improvement)
Total quality management (TQM)
Time based management

4. Cell production Involves team working
Production is split into self-contained units (cells)
Each cell is responsible for a complete product or production process
Workers in each unit are multi-skilled, allowing for greater flexibility
Wastage can reduce as
each cell is responsible for its own quality
there should be few communication problems as the cells are small

5. Just-in-time (JIT)
This is a stock control method whereby materials are
delivered just as they are needed.
JIT therefore...
reduces need for storage
improves working capital as little cash tied up in stock
reduces risk of stocks becoming damaged or obsolete
relies on the reliability of the suppliers
limits ability to respond to an unexpected order or increase in demand

6. Kaizen and TQM
Kaizen is a Japanese concept of making ongoing incremental improvements to quality and efficiency
Ideas for improvement come from the workers
Quality circles may be used within Kaizen
Total quality management is a quality assurance approach whereby ALL workers are responsible for quality
TQM aims to ‘get it right first time’

7. Time based management Time based management aims to eliminate time
wasted during design and production.
Time based management...
analyses where time is wasted and acts to reduce this e.g. equipment set-up times
looks for opportunities to carry out processes simultaneously
reduces new product development and launch times
makes firms more responsive to market changes

8. Critical path analysis (CPA)
Critical path analysis is a decision making technique
CPA looks at the shortest possible time to carry out a project by identifying when tasks can be carried out simultaneously
CPA allows for planning and monitoring of a project
Allows resources to be allocated only when they are needed

9. Benefits of lean production
Cuts costs
Increases efficiency
Increases responsiveness of firms to market changes
Provides competitive advantage