Lean production: producing goods and services efficiently with the minimum of waste resources while maintaining high quality.
Methods of lean production
Continuous improvement (kaizen)
Just-in-time (JIT): stock-control method that aims to avoid holding stocks by requiring supplies to arrive just as they are needed in production and completed products are produced to order.
Kanban: Japanese manufacturing system in which the supply of components is regulated is through the use of an instruction card sent along the production line.
Andon: manufacturing term referring to a system to notify management, maintenance, and other workers of a quality or process problem.
Cradle to cradle (C2C): manufacturing principle that seeks to create production techniques that are not just efficient but are essentially waste-free and truly sustainable.
Quality product: good/service that meets customers’ expectations and is therefore '“fit for purpose”.
Quality standards: expectations of customers expressed in terms of the minimum acceptable production/service standards.
Quality control is based on inspection of the product or a sample of products.
Quality assurance: system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction.
Benchmarking involves management identifying the best firms in the industry and then comparing the performance standards including quality of these businesses with those of their own business.
Quality circles: groups of employees who meet regularly to discuss ways of resolving problems and improving production and quality in their department/organization.
Total quality management (TQM): approach to quality that aims to involve all employees in the quality improvement process.
The impact of lean production methods can help to transform the competitiveness.
Main advantages of lean production:
Impact of lean production on business functions