Factors influencing Efficiency:
- Introducing standardisation
- Relocating – Lower rents and better transport links
- Downsizing – Reducing capacity which allows for a leaner more competitive production system – – profitable business no longer subsiding unprofitable ones
- Investing in new technology
Lean Production: Introduced by Toyota and aims to reduce the resources used in all aspects of production aka space used, materials, stock, suppliers, labour, capital and time.
- Raises Productivity
- Reduces costs and cuts lead times
- Reduces the number of defective products
- Improves reliability and speeds up product design
Kaizen: Continuous improvement. Small changes add up to long term impact which benefits the business.
Just in Time Production (JIT): Involves minimising or eliminating the amount of stock held by a business. It reduces all the costs associated with stock holding