Efficiency

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    Efficiency

    Factors influencing Efficiency:

    • Introducing standardisation
    • Outsourcing
    • 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
    • Delayering
    • 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

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