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Lean Production

 

When we think of the biggest, most valuable car manufacturers in the world, it is normal for our minds to think of brands such as Ferrari, Lamborghini or Porsche and the glamour that is associated with those brands. However, it may be a surprise for many to see that the second most valuable car manufacturer in the world at the moment is Toyota. Yes. Toyota. 

 

Known for its comfort, reliability and good value for money, this Japanese car manufacturer can easily be regarded as the complete opposite of those mentioned earlier. Toyota uses a completely different ideology as well. Toyota’s lean production system is a manufacturing philosophy which puts efficiency, quality and productivity at the forefront whilst operating in a manner that is designed to facilitate the reduction of costs and waste. This innovative manufacturing technique has earned Toyota a lot of respect in the international business community and has helped the company achieve a lot of the success it has achieved over the years. 

 

What exactly is lean production?

Lean production is a management philosophy in which companies maximise efficiency and productivity whilst reducing costs to a minimum. Whilst there are multiple different ways of implementing lean production in a business, there are some key philosophies which form part of the crux of lean production. 

 

Just-in-time (JIT):

 

This is the most famous method of implementing lean production. This philosophy is aimed at minimizing storage costs. As a result, supplies are meant to be delivered at the latest time possible This has its associated risks as it requires businesses to be very confident that their suppliers will deliver and it needs them to have contingency plans in place in case supplies are not delivered. Businesses must decide whether or not this is a risk worth taking in terms of the potential upside that it has in terms of cost-saving. 

 

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