Lean Production and Resource Efficiency

Flashcards about Lean Production, Just-In-Time Production, Kaizen, and Resource Efficiency

Lean Production

A way of making things that tries to use as few resources as possible; it raises productivity, reduces costs, improves reliability, and reduces defective products.

Just-In-Time Production

A way of making products only when customers order them, so the business keeps very little stock.

Advantages of Just-In-Time Production

Improved cash flow, no waste, space is release, no stock holding cost, stronger link with suppliers, fewer suppliers.

Disadvantages of Just-In-Time Production

Higher ordering and administration fees, Relies hugely on supplier reliability, no bulk-buying advantage, hard to cope with changes in demand, at risk if supplies don’t arrive on time.

Kaizen

Aims to improve efficiency, quality, and reduce waste; improvements are small but impactful over time.

5'S of Kaizen

Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize), Shitsuke (Sustain).

Standardisation (Kaizen Principle)

Carrying out business according to established formulas.

Teamworking (Kaizen Principle)

Splitting people from the same workfield into groups; each team will focus on a particular production, and members will have the same goal.

Empowerment (Kaizen Principle)

Giving workers more control.

Suggestion Scheme

Encouraging workers to suggest ideas to improve production or reduce costs.

Quality Circle

A group of employees coming together to solve production problems.

Multi-skilling

Having employees with multiple skills allows the business to cut costs.

Importance of Using Resources Effectively

Financial benefits, improved competitiveness, positive environmental effects, improved customer service