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Transcript of Lean production
Reduced lead times
Shorter product development times
Production based on a range of waste saving measures inspired by Japanese manufacturing companies
Just in time
Lead time is the time taken between an order being received and the final product/service being delivered to/provided for the customer.
(e.g. CPA can be a tool to help to reduce the time of a project.)
What problems would that create?
Costs of keeping stock
Inability to cope with consumer demand changes
Products not sold
What processes are involved in product development prior to sales?
What would be the easiest way to reduce lead time?
Time-based management is concerned with reducing the length of time taken to produce the product and also, therefore, reducing the lead-time.
A Japanese philosophy that organises operations so that items of stock (inventory) arrive just at the time they are needed for production or sale.
The ultimate aim is to eliminate the need for stock, although in practice this is not always ideal.
"Ford's mass production system failed to incorporate the notion of "pull production" and thus often suffered from over-production."
"Push production is based on forecast demand and pull production is based on actual or consumed demand."
Having minimum possible level of stock, replenishing only when absolutely needed
Authority to stop production
A policy of implementing small, incremental changes in order to achieve better quality and/or greater efficiency.
These changes are invariably suggested by employees and emanate from a corporate culture that encourages employees to identify potential improvements
The disadvantages of a lean (just-in-time) production system are:
Benefits of lean production
Kaizen groups or quality circles - groups designated to identify potential productivity and quality improvements
a more motivated as a result of their greater skills and more interesting job
worker participation in decision making leading to better, more informed ideas and methods
reduced and stockholding costs, firms' cash-flow positions
higher quality and greater variety of and
that are continuously for the customers' benefit
The business may struggle to meet orders if their
fail to deliver the materials on time.
The business is unlikely to 'bulk-buy' its raw materials and, therefore, it may lose the benefit of achieving .
Buffer stocks are minimal and this may lead to the business having to reject customer requiring delivery immediately.
is it always useful to use 'just-in-time' processes?
•Identify the three management methods that form ‘lean production’
•Have an understanding of overall features of each of the three methods.
•Be able to explain the key terms related to ‘lean production’
•Demonstrate understanding of how ‘lean production’ is organised
economies of scale