Lean Production

Lean production aims to reduce all forms of waste. 

  • Created by: katie
  • Created on: 26-03-13 08:41

Lean Production

Advantages

  • Lead times are cut
  • Damage, waste and loss of stocks/equipment are lowered
  • A greater focus on customer needs
  • Improved quality through the introduction of kaizen and quality circles
  • Lower costs and contribute to improved profits
  • Staff are more involved and potentially more motivated
  • Working environments are safer and cleaner

Disadvantages

  • The business may struggle to meet orders if their suppliers fail to deliver raw materials on time
  • The business is unlikely to 'bulk buy' its raw materials and, therefore, it may lose the benefit of achieving economies of scale
  • Buffer stocks are minimal and this may lead to the business having to reject customer orders requiring delivery immediately

Evaluation

Lean production reduces waste and the costs involved in stock, therefore improving profits. However, the business will need to build a good relationship with the supplier because they will be reliant upon them. if they are not this could lead to a bad reputation and damaged brand image. 

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Lean Production

Lean production aims to reduce all forms of waste. 

  • Created by: katie
  • Created on: 26-03-13 08:41

Lean Production

Advantages

  • Lead times are cut
  • Damage, waste and loss of stocks/equipment are lowered
  • A greater focus on customer needs
  • Improved quality through the introduction of kaizen and quality circles
  • Lower costs and contribute to improved profits
  • Staff are more involved and potentially more motivated
  • Working environments are safer and cleaner

Disadvantages

  • The business may struggle to meet orders if their suppliers fail to deliver raw materials on time
  • The business is unlikely to 'bulk buy' its raw materials and, therefore, it may lose the benefit of achieving economies of scale
  • Buffer stocks are minimal and this may lead to the business having to reject customer orders requiring delivery immediately

Evaluation

Lean production reduces waste and the costs involved in stock, therefore improving profits. However, the business will need to build a good relationship with the supplier because they will be reliant upon them. if they are not this could lead to a bad reputation and damaged brand image. 

Comments

No comments have yet been made