Lean Production

Question 1

What is lean production

Answer 1

Approach to management that focuses on cutting waste, whilst ensuring quality. Associated with JIT production

Question 2

Debt and equity

Answer 2

Debt - finance provided to the business by external partners
Bank loans
Other long term debt

Equity - amounts invested by the owners of the business
Share capital
Retained profits

Question 3

Ergonomics

Answer 3

Ergonomics - looks at the relationship between the employee and the capital equipment (machine or tool) being used.

Minimum amount of time is wasted in using the machine or equipment e.g. car plants where tools are attached to spring coils so employees can just let go instead of putting it back somewhere

Question 4

JIdoka

Answer 4

Jidoka - this is a process for building into production process an ability to detect and reject faulty goods and components at the earliest possible moment in the production of the good.

If the production has to stop this is known as downtime

Is an aid to prevent defects occurring and ultimately keeps the production moving

Question 5

Kansan

Answer 5

Kanban - linked to JIT, helps to organise the flow of components onto the production line at the right place at the right time

As stock is used to make products there is a predetermined quantity (reorder level) and a computer will take stock from a surplus area in the production and place it into the deficit