lean production

• Just in time (JIT) aims to ensure that inputs into the production process only when they are needed, it works because they cannot afford mistakes; no space, no spares
• • Based on a ''pull'' system of production - customer orders determine what is produced
  • JIT requires complex production scheduling usually achieved using specialist software to connect production departments with suppliers
• Advantages of JIT?

  No warehouse costs

  Improves quality

  Reduces waste

  Less working capital is tied up in stock

  Less time is wasted on quality checks as they can only be done once

  Less likelihood of stock going out of date
• Drawbacks of JIT/Lean production?

  Rely heavily on suppliers

  One mistake stops whole production line

  High transport costs due to lots of delivers

  Little room for mistakes

  A need for complex specialist management systems
• Why do businesses need to cut out waste at all levels?


  Waste disposal is costly

  Pollution laws need to be followed

  Customers are environmentally aware
• WASTE IS A COST
• What are the types of waste?

  • over production - more made than needed
  • waiting time - production line isn't stopped
  • transport - moving resources
  • stocks - buffer stock
  • defects - quality standards
• Kaizen means continuous improvement, employees are encouraged to work in Kaizen groups
• What is the andon cord?

  A system to notify management and other workers of a quality or process problem the centrepiece is a signboard incorporating signal lights to indicate where there is a problem. The employment of employees to stop production not the mechanism.
• Innovation is about putting a new idea or approach into action innovation is commonly described as commercially successful exploitation of ideas
• What is production innovation?


  Launching new or improved products onto the market
• What is process innovation?


  Finding better or more efficient ways of producing existing products or delivering services
• Process innovation gives businesses a competitive advantage because no other competitors have it and competitors cannot get it
• What are the benefits of product innovation?


  higher prices

  higher productivity

  customer loyalty

  enhanced reputation

  increased market share
• What are the benefits of process innovation?


  reduced costs

  improved quality