Lean Production - Advantages and Disadvantages

Question 1

Give 2 advantages of the Just In Time method of lean production?
(4 reasons)

Answer 1

• Improves cash flow (money isn’t tied up in stocks).
• Reduces waste, obsolete and damaged stocks.
• More factory space is made available for production.
• Costs of stock holding are greatly reduced.

Question 2

Give 2 disadvantages of the Just In Time method of lean production?
(4 reasons)

Answer 2

• Increase in ordering costs.
• Suppliers cannot always be relied on to be flexible and reliable.
• Advantage of buying in bulk may be lost.
• Difficult to cope with an unexpected increase in demand.

Question 3

Give 2 advantages of the Kaizen method of lean production?

2 Reasons

Answer 3

Waste is eliminated - staff time is used effectively, workers do not move unnecessarily to another task, machines are used on a regular basis.
Workers are rewarded for finding ways to eliminate waste.