Business Studies Collins Revision Guide. - StudyGuide.PK

PRODUCTION METHODS (5)Stock control●●●●●●Lean production is the production of goods in the most efficientway possible to ensure that there is no waste. All resources areused in the best way possible to reduce costs.An important part of lean production is JIT (Just in time), which isconcerned with the supply of the stock needed for production.Detailed planning is needed and a good relationship betweensuppliers and the business must be built up so that stock isreceived just before it is needed on the production line, possibly aslittle as 30 minutes before it is used.Lean production also maximises the use of flexible and multi-skilledworkforces, using workers where they are most needed at any onetime so that they can achieve the best performance.Kanban is an approach to production that uses JIT stock controland leads to stock being pulled into the production line only whenit is needed.Any strategy that involves JIT depends on constantly high qualitygoods being supplied. Production can be delayed by transportproblems. Changing suppliers can also cause problems, as trustbetween the businesses is very important.Too much stock held by a business means that too much capital istied up which could be used more efficiently. Also, the stock needsto be stored, thus using up land, buildings and labour to ensurethat is secure. If it is kept for too long, stock can deteriorate, forexample wood may warp or rot.73