IGBizStudies

May 20, 20211 min

What are lean production practices

Updated: Jun 18, 2023

Lean production methods help minimize waste and improves efficiency. This will reduce cost. The two (2) lean production practices are;

  1. Kaizen

  2. Just-in-time

Kaizen

The word "Kaizen" means "continuous improvements" in Japanese. It is a method that involves a continuous process of finding improvements involving all employees in a firm. Each solution identified will become a standard production practice. This ensures that all areas of operation improves continuously.

Just-in-time

Inventory will be delivered just in time for production use. This helps reduced space used to store inventory and waste from overstocking. Reduced rental from space available could reduce cost or can be used for other business activity.

RELATED CONCEPTS

  1. Efficiency

  2. Cost

  3. Inventory management

TRY PAST YEAR EXAM QUESTIONS

  1. Identify and explain two methods of lean production that a business might use (4 marks) Oct/Nov 18/12

  2. Explain two ways BMT could achieve lean production (6 marks) Oct/Nov 2019/11

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