Lean Production

Waste reduced:

• Time
• Mistakes

Explanation:

• Workers encouraged to suggest improvements 
• Japanese for 'continuous improvement' 

Advantages: 

• Range of ideas suggested 
• Workers are 'closer to the problem'
• Workers feel more important and motivated

Disadvanatages:

• N/A

Waste reduced:

• Stocks
• Mistakes

Explanation:

• Few stocks are held
• Stocks are only delivery just before they are needed

Advantages: 

• Less storage costs
• Pressures workers to not make mistakes 

Disadvanatages:

• Must have reliable suppliers
• Problems if you cannot predict demand
• Lose your economies of scale 

Waste reduced:

• Absenteeism 
• Mistakes

Explanation:

• Employees work in self-managed teams
• Training is delegated to team leaders

Advantages: 

• Employees do the work of absent colleagues, increasing output
• Social needs are met and so increasing motivation of employee
• Delegation makes the employees feel important

Disadvanatages:

• Employees may want extra wages per extra responsibility 

Waste reduced:

• Staff costs
• Mistakes
• Resources

Explanation:

• All employees are responsible for checking their own work 

Advantages: 

• No inspectors are used, saving cost 
• Workers feel important and motivated

Disadvanatages:

• Productivity may fall
• Training costs 
• Cannot use Piece Rate Payments 

Waste reduced:

• Time
• Mistakes
• Staff costs

Explanation:

• Small groups of employees meet to discuss how to improve product quality

Advantages: 

• Range of ideas suggested 
• Workers feel motivated

Disadvanatages:

• Opportunity cost