Lean Production

• Lean production is about reducing waste
• If you reduce waste

  You'll increase efficiency or potentially increase productivity
• Increasing efficiency or productivity

  Leads to less costs or more revenue
• Types of waste

  • Too much stock of materials and components leading to storage costs
  • High defects in production process leading to waste of raw materials and components
  • High overproduction leading to waste of resources
  • Excess factory space leading to waste in terms of cost and space
  • Poor production planning or outdated technology leading to time wastage
• Just-in-time (JIT) is about having the exact amount of raw materials, components, stock arriving when needed
• Trust in suppliers is crucial for JIT


  Dependence on suppliers for timely and accurate deliveries
• Kaizen means continuous improvement through small incremental changes over time
• Kaizen examples


  • Implementing quality assurance systems, quality circles, daily process improvements