Just-in-Time (JIT) — receive materials only when needed, keeping stock low
Kaizen (continuous improvement) — all employees suggest small, ongoing improvements
Cell production — small teams responsible for a complete section of the product
Time-based management — speed up processes to reduce lead times and respond faster to demand
Lean Technique
Just-in-Time (JIT) Production
Definition
JIT means materials arrive exactly when needed in production — no large stockpiles. Pioneered by Toyota to eliminate warehousing waste.
Benefits of JIT
Reduces storage costs and warehouse space
Less cash tied up in stock
Reduces risk of stock becoming obsolete
Encourages strong supplier relationships
Risks of JIT
Any supplier delay halts production
Cannot cope with sudden demand spikes
Requires very reliable suppliers and transport
No buffer stock as a safety net
Real world: COVID-19 exposed JIT's weakness — global supply chain disruptions left car manufacturers unable to produce because of a shortage of microchips.
Technology
Automation in Production
Robotics — automated machines perform welding, painting, assembly in car manufacturing; faster and more precise than humans
Computer-aided manufacturing (CAM) — machines controlled by computer programs for consistent, accurate output
Benefits: lower long-run labour costs, 24/7 operation, consistent quality, safer for dangerous tasks
Drawbacks: very high initial investment; redundancies can damage morale and community; machines break down
Trend: AI-driven automation is expanding into white-collar work (data entry, customer service, logistics)
Practice Question 1 of 3
A baker makes 200 white loaves, then resets the equipment to make 150 wholemeal loaves. Which production method is this?
AJob production
BBatch production
CFlow production
DLean production
Correct: B.Batch production involves making groups (batches) of identical products before switching to the next batch. Here, 200 white loaves are one batch, then the equipment is reconfigured for 150 wholemeal loaves — a classic batch production example. Job production makes one-off items; flow is continuous with no resetting.
Practice Question 2 of 3
A car manufacturer uses a production line running 24 hours a day, 7 days a week, producing 500 identical cars per day. Which production method does this best describe?
AJob production — each car is bespoke
BBatch production — cars are made in groups
CFlow production — continuous, high-volume, standardised output
DJust-in-Time production
Correct: C. A continuous production line running 24/7 producing standardised items in high volumes is flow production. It uses highly automated machinery with each station performing one specialist task. This method achieves the lowest unit cost but requires massive capital investment and offers no flexibility.
Practice Question 3 of 3
A manufacturer introduces Just-in-Time stock management. Its main supplier suffers a factory fire and cannot deliver materials for 2 weeks. What is the most likely consequence for the manufacturer?
AThe manufacturer is unaffected as it holds large buffer stocks
BProduction halts because there is no stockpile of materials to fall back on
CThe manufacturer switches instantly to a different product line
DLabour costs fall because fewer workers are needed during the delay
Correct: B. The key risk of JIT is that it holds minimal or no buffer stock. If a supplier fails to deliver, the manufacturer has nothing to fall back on and production stops. This is why supply chain reliability is critical for JIT businesses. Buffer stock systems are more resilient to supply disruptions but cost more to hold.