unit 4

lean production-aims to reduce all forms of waste in the prodcution process. this can include materials, time, energy and human effort.

Aims...

zero delays ,zero stocks,zero mistakes,zero waiting,zero accidents.

techniques...

time based managment, cell porduction, benchmarking, kaizen, just in time.

time based management-if a business is able to produce a productin shorter time than rivals . they get more sales as a result. businesses therofre sometimes compete on time to deliver goods.

examples of tbm- dominoes, optitions and amazon.

cell production- orgnising prodcution aroound teams insted of a production line. the production is divided into a sries of different stages which re undertken by teams or cells.

advantages of cell prodcution- less time taken, job diverstiy, motivating less employees so cheaper, influences quality.

disadbages- may e slower, output may be lower, differentb calls may work t different speeds, businesess may hve to invest in more materials for each cell.

THE HIGHER THE LABOUR PRODUCTIVITY, THE LOWER THE WAGE COST PER UNIT. THIS MEANS MORE PROFIT FOR THE BUSINESS. THIS PROFIT CAN BE USED FOR REINVESTMENT, MOTIVATION AND TRAINNING.

How increse lbour productuivity?

recruit skilled workers, training, technology, work practices.

what is the disadvabtages of trainng?- it is a cost to th business and is time consuming.

what are the diadvantages of motivation?- time consuming, increases costs, does not always work.

what are the disadvantages of tecnology?-costs are high and work force is demotivated.

what is the disdvatges of improving woring practices?.. costs incased and red tape

disadvantages of recruiting skilled workers?- time cosuming, costs, some of the workforce wont be able to keep up.

capacity-how much something can hold.

capacity utilisation- how much is being used of something.

formula for capacity utalisation... actual output/maximum output x 100

unit costs-Unit costs include all fixed costs, or overhead costs, and all variable costs, or direct material costs and direct laborcosts, involved in production. it is the cost of prodcuing one unit of output.

your unit costs are equally as important if you are a small or large firm.

why invlove employees in decison making?-they feel invloved and part of a team, teaches them to make better decitions, they feel more responsible, they will not be able to blame management, they will feel more motivated,less work for a manager.

how might employers engage employees?- get to know them, provide basic training, encourage teamwork,act on employee feedback.