Advantages & Disadvantages of Lean Production Essay

769 Words May 8th, 2013 4 Pages
Advantages & Disadvantages of Lean Production by Scott Shpak, Demand Media Lean production originated in the auto industry to address waste and efficiency.
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Lean philosophy centers on the elimination of waste in all forms in the workplace. Specific lean
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Not only do they serve as a resource for you, employees usually respond in a positive way to sincere efforts to involve them in improvement processes. When they see suggestions and ideas incorporated, a sense of ownership and satisfaction about their contribution is more likely to follow.
Just in Time
JIT is a strategy that suggests large inventories are wasteful of company resources. Business equity tied up in inventories of raw and finished goods interferes with cash flow. Money is also saved through reduced warehousing needs. The perfect JIT scenario would have the raw materials purchased and delivered at the moment production needs them, and the finished product is sold and delivered the moment it comes off the line. While this scenario may be impossible, lean philosophy suggests making improvements toward the ideal.
Competitive Advantage
Beyond simply reducing costs and improving efficiency, lean production techniques introduce systems and develop skills with your staff that support changes in the workplace that new sales create. Space saved on warehousing may be used to add new product lines. The same is true of time savings. Your staff can absorb new work and react quickly to changes in client demand. Producing work quickly, in short iterations, without waste and delivered on time enhances your advantage over your competition.
New Inefficiencies
Lean techniques can be overused. When tracking of productivity and

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