Lean Production
Chapter 38
Definition
 Lean production is a collection of methods
that attempt to reduce waste in the
production process
Benefits to lean production
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Reduced stock
Improved quality
Lower costs
Reduced space requirements
Shorter lead time
Increased productivity
Disadvantages
 Requires all staff to be in favour – staff find it
hard to sustain the constant demand to
improve and develop
 May not be able to meet customers demand
– the need to reduce waste and minimise
stock levels can leave to the reduction in
ability to cope with customers demands
 Relies on a good supply chain
Jaguar
• At the Jaguar car production plant near Birmingham the
production line has been designed using the principles of
lean production.
• Before, Jaguar use to use much more factory space because
a lot of stocks and supplies were kept on the factory floor.
• Now, all stocks are kept in a separate storage area where
they are delivered just in time to feed the production
process.
• This increases efficiency for Jaguar and reduces cost and
waste. So increasing profit for Jaguar.
Toyota “lean manufacturing”
 A production system which is steeped in the
philosophy of "the complete elimination of all
waste" imbuing all aspects of production in
pursuit of the most efficient methods.
 Toyota Motor Corporation's vehicle
production system is a way of "making
things" that is sometimes referred to as a
"lean manufacturing system" or a "Just-inTime (JIT) system," and has come to be well
known and studied worldwide.