2.3.3 Efficiency & competitiveness using lean production

Question 1

Define lean production

Answer 1

Refers to the process of minimising waste during the stages of production.

• This is with the aim of reducing costs.

Question 2

What does lean production aim for (there’s 5 on here)

Answer 2

1. Eliminate waste
2. Meet customer requirements
3. Do things correctly the first time round
4. Give power to the workers
5. Create a culture of continuous improvement (Kaizen)

Question 3

The following strategies could be used in lean production:

Answer 3

1. Quality control
2. Quality assurance
3. Total Quality Management (TQM)

Question 4

What does Quality control mean

Answer 4

The process of checking products to ensure they meet a minimum standard.

• It suggests the firm is aware of the potential for mistakes, but they have not done anything to solve this.

Question 5

What does Quality assurance mean

Answer 5

1. This means the commitment, between the design, production and marketing sections of a production process, to collaborate.

• This is with the aim of improving the quality and reliability of the product.

Question 6

What does Total Quality Management (TQM) mean

Answer 6

1. To create responsibility, in both the individual and collective stages of production, for quality.

• Every team involved in production is considered to have responsibility for quality.

Question 7

What is Continuous improvement (Kaizen)

Answer 7

1. It is an approach which involves introducing small alterations in a business with the aim of improving quality and efficiency.

• It places emphasis on getting things right the first time round.

Question 8

What does Just in time (JIT) management of stock mean

Answer 8

1. It reorders small quantities of stock, so less stock is held at any one time.

(JIT ensures inputs to the production process only come as and when they are required, based upon consumer demand.)

Question 9

Advantages of Just in time (JIT) management of stock

Answer 9

1. Reduces the costs of holding stock & it builds a strong relationship between the firm and its suppliers.

Question 10

Disadvantages of Just in time (JIT) management of stock

Answer 10

1. Can become complicated & require efficient handling of stock in order to be effective.

Question 11

Competitive advantage from lean production:

Answer 11

1. Reduced costs
2. Quality improves
3. Staff might feel more motivated