Lean Production
How does a business make its products using as few resources as possible? Learn lean production and just in time, why they cut storage costs and free up cash, and when the risk of holding almost no stock is worth taking.
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Cut the waste 🏭
Every business wants to make its products using as few resources as possible. LEAN PRODUCTION means making goods with as little waste as you can, while keeping quality high. This module looks at lean production and one of its main methods, just in time, and at when it is the right choice.
Words to know 🔑
Four terms run through this topic. Learn them first.
Just in time or buffer stock? ⚖️
A business can hold almost no stock, or keep a spare buffer just in case.
Weigh up the risk 💡
Just in time cuts storage costs and frees up cash, but it leaves no spare stock. If a supplier is late, production can stop at once. In the exam, do not just list the benefits. JUDGE whether just in time suits the business, using how reliable its suppliers are and how steady its demand is.
Match the term 🔗
- Lean production
- Just in time
- Waste
- Buffer stock
- Making goods with the least possible waste
- Stock arrives exactly when it is needed
- A resource that is used but adds no value
- Spare stock kept just in case
What is just in time? 🎯
What does just in time mean?
- Stock arrives exactly when it is needed, so little is stored
- A large buffer of spare stock is always kept
- Products are always delivered to customers on time
- Workers always finish their shifts on time
Match the effect 🔀
- Holding very little stock
- A supplier delivers late under just in time
- Removing a step that adds no value
- Stock is used soon after it arrives
- Lower storage costs
- Production can stop
- Less wasted effort
- Fresher, less out-of-date stock
Benefits of just in time ✅
Which TWO of these are benefits of just in time? Choose all that apply.
- Lower storage costs
- Less money tied up in stock
- The need for larger warehouses
- Holding more spare stock just in case
Follow the cash 🪜
An interactive activity.
Complete the sentences 🧩
Lean production aims to cut out all kinds of _____. One method is _____ in time, where stock arrives exactly when it is needed. This keeps _____ costs low and ties up less _____. The main risk is that it relies on a reliable _____.
Count the waste saved 🔢
An interactive activity.
Spot lean production 🖍️
An interactive activity.
Lean or wasteful? 🧭
An interactive activity.
Explain and judge ✍️
An interactive activity.