Lean Production

Techniques use by the business to cut down on waste and therefore increase efficiency 

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Kaizen

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
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Just In Time (JIT)

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 
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Cell Production

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 
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Total Quality Management (TQM)

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 
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Quality Circles

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 
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