2.3.3 Lean production

Question 1

What is lean production?

Answer 1

Methods which derived from japanese businesses to cut costs whilst maintaining or improving quality

Question 2

What are the 2 methods os lean production?

Answer 2

• ( JIT management of stock)
• Kaizen

Question 3

Explain them

Answer 3

Just in time management stock is a lean production technique where the business looks to remove stock holdings in each stage of the prodction process.
Kaizen is where a business will concnetrate on small parts of the production process in order to see little but continous improvenment in every aspect.

Question 4

What is quality control?

Answer 4

The checking of a good or service before it is finally delivered to a customer.

Question 5

What is quality assurance?

Answer 5

This is ensuring a quality check along each stage of the production process. Firms usually adopt this type of quality check with the most common being a total quality management.

Question 6

How can firms gain a competitive advantage using lean production?

Answer 6

Lean production leads to reduced wastage for a firm and greater efficiency. As a result avergae unit costs fall which can be passed onto consumers with lower prices making them more price competitive. Though could lead to price wars.