Production Efficiency Flashcards
What is Lean Production?
The business aims to use as few resources as possible and to have as little waste as possible.
Makes production more efficient.
What is a Just-in-time?
A form of Lean production. Aims to keep stock levels to the bare minimum.
What is the main benefit of JIT?
Reduces the cost of having to keep stock.
What are the main problems of JIT?
It requires a lot of coordination between the firm and its suppliers.
Firm needs to take lots of frequent deliveries of stock - will be more costly for firm.
Firm could run out of stock.
What is Just-in-case?
A method of operating a production and distribution system with buffer stocks of items at every stage of the process.
What does buffer stock mean?
There is still enough to satisfy demand so production can continue.
What is the main problem of Just-in-case?
Firms can be left with big stockpiles of items, which can be costly to store.
