Lean production methods help minimize waste and improves efficiency. This will reduce cost. The two (2) lean production practices are;
Kaizen
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
Efficiency
Cost
Inventory management
TRY PAST YEAR EXAM QUESTIONS
Identify and explain two methods of lean production that a business might use (4 marks) Oct/Nov 18/12
Explain two ways BMT could achieve lean production (6 marks) Oct/Nov 2019/11