Theme 2 - Impact of lean production on costs and sales revenue

Created by: becky.65
Created on: 20-05-17 17:12

How does lean production increases efficiency, productivity and cut costs?

Reducing the need to correct defects, cutting the costs of storage inputs and finished products, keeping production levels in line with current demand, seeking process innovation, avoiding over-processing and using time-based management

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What is time based management?

It aims to save time wherever possible, ensuring that no one is delayed by having to wait for other employees to finish their work

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What are product development lead time?

It starts from the first idea about the product, through the design and development period, to being ready to start selling the final product

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How does fast lead times create a competitive advantage?

If a business responds quickly when the market demand changes, its market is likely to grow because it can get to the market faster, if businesses have a faster delivery they can get to consumers faster and if the business is able to adapt to market

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What are the benefits of short production development lead times?

Reduces the development time in the product life cycle, reduces costs, improves cash flow, can respond rapidly in changes to demand and can enter a market before competitors do

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But what does a business need to have a short production development lead time?

Capital equipment, labour and management that are flexible

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Other cards in this set

Card 2

Front

What is time based management?

Back

It aims to save time wherever possible, ensuring that no one is delayed by having to wait for other employees to finish their work

Card 3

Front

What are product development lead time?

Back

Card 4

Front

How does fast lead times create a competitive advantage?

Back

Card 5

Front

What are the benefits of short production development lead times?

Back

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Theme 2 - Impact of lean production on costs and sales revenue