Types of Production 2


Lean Production refers primarily to the Japanese production techniques such as just in time production. These are techniques that attempt to keep production costs to a minimum. It attempts to reduce the total inputs compared to output.

Just In Time Production originated in Japan and was pioneered by firms such as Toyota and is now being adopted by many UK firms. The idea behind JIT is to reduce production costs by always keeping stocks of components, raw materials, work in progress and stocks of the finished product to a minimum.

  • Finished goods are produced just in tme for them to be sold.
  • Components and raw materials arrive just in time to be turned into the finished product. Toyota receive components four hours before use.
  • All sources off uncertainty must be remove from the production process. This includes unreliable suppliers or equipment. Buffer stocks are…


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