2.3.3 Efficiency and competitiveness using lean production

What is lean production?

Minimising waste during production to reduce costs, meet customer needs, do things right first time, empower workers, and encourage continuous improvement (Kaizen).

What is quality control (QC)?

Checking products during and after production to ensure they meet a minimum standard.

What is quality assurance (QA)?

Collaboration between design, production, and marketing to ensure quality is built into every stage of production.

What is Total Quality Management (TQM)?

Everyone in production is responsible for quality; each stage treats the next as a customer, with the final customer determining quality.

What is Kaizen?

Continuous improvement; small changes that improve efficiency and quality, often without major investment, and encourage employee involvement.

Give an example of Kaizen in practice.

Reorganising a desk to save 5 minutes per day per worker, which adds up to hundreds of hours per year.

What is Just in Time (JIT) stock management?

Ordering stock only as it is needed based on consumer demand, reducing storage costs and waste.

What are the advantages of JIT?

Lower storage costs, less risk of perishable/obsolete stock, less capital tied up, less time checking production.

What are the disadvantages of JIT?

Heavy reliance on suppliers, less flexibility for unexpected orders, mistakes in production are costly, requires complex stock systems.

How does lean production give a competitive advantage?

Reduces costs (lower prices), improves quality (customer satisfaction & loyalty), and motivates staff (better productivity).