LEAN PRODUCTION

• What is lean production?

  an approach to production aimed at reducing the quantity of resources used
• What is a defective product?

  a product that has not been made properly or is not working properly
• What is it that lean producers will use less of?

  • factory space
  • materials
  • stocks
  • suppliers
  • labour
  • capital
  • time
• Why is lean production beneficial?

  • raises productivity
  • reduces costs
  • reduces the number of defective products
  • speeds up product design
• What is just-in-time production?

  a technique that is highly responsive to customer orders and uses very little stock holding
• What are some advantages of just-in-time production?

  • improved cash flow
  • no waste, out of date or damaged stock
  • stronger links with suppliers
  • no stock holding costs
• What are some disadvantages of just-in-time production?

  • higher ordering and admin costs
  • hard to cope with changes in demand
  • vulnerable to a break in supply
• What does it mean to be tailor-made?

  when a product has been designed specifically for a customers needs and wants
• What is stockpile?

  a large supply of goods that are being kept for possible use in the future
• What does it mean to sustain something?

  to manage to make something continue to exist over a long period of time
• What is empowerment?

  when workers in a company are given more responsibility by being allowed to organise their own work and make decisions without asking their managers
• What do the Japanese use 5S for?

  to ensure that they have a clean and well-organised working environment in order for continuous improvement to flourish
• What are the 5S's?

  Sort (get rid of workplace clutter)

  Set in order (organise work area)

  Shine (ensure work area and equipment are clean)

  Standardise (adapt to these actions)

  Sustain (adapt and help other people adapt to these actions)
• What are quality circles?

  a small group of factory workers who meet regularly to discuss ways to improve working methods and to solve problems
• Why is it important to use resources effectively?

  • financial benefits
  • improved competitiveness
  • positive environmental effects
  • improved customer service