1. What is meant by the term ‘optimal location’?

2. How might the increasing use of internet shopping have an impact on the location decisions of businesses that sell to that final consumer?

3. Explain how a location decision might influence the break-even level of output of a business.

4. Explain two reasons why a car manufacture such as Toyota has chosen to operate as a multinational.

Do Now:Location Re-cap

5 minutes

End

Operational Strategies: Lean Production

By the end of the lesson you should be able to:

1. Identify a range of techniques associated with lean production and the benefits of use for larger businesses.

2. Interpret and complete critical path networks

3. Assess the benefits and limitations of critical path analysis.

Learning Objectives

Production efficiency comes about as a result of making quality products at the lowest cost with as a little waste as possible.

Firms do this by adopting lean production techniques.

Can you solve these lean production techniques?

Lean Production Techniques

TNJ-UIS-IMTE IANEKZ ME-BSMEM AAINATGEDN

TE

JUST-IN-TIME KAIZENTIME-BASED

MANAGEMENT

JIT aims to reduce waste by limiting the stock holding at each stage of the production process.

How does it work? Materials are delivered as required. Raw materials straight to the

production process. Retail goods straight to the shop

floor. In catering only food for that day is

prepared.

Just-in-time (JIT)

Why would firms to do this?

ThinkWrite down

one reason for and one

reason against

PairWalk around

the room until the music stops and share your

ideas.

ShareShare your

ideas with the rest of the

group.

Reasons FOR Reasons AGAINST

• Minimise the cost of holding and storing stock

• No obsolete or ruined stock.• Possibly reduced insurance

costs. • Made to order.• Can lead to a competitive

advantage.

• Can take time and money to introduce.

• Risk if long supply chain.• Systems have to be reviewed

and new systems put in place.

• Possible high staff training costs and may need to purchase new IT systems.

Kaizen – is an approach to improving efficiency and performance through continual improvement.

How does it work? Staff are empowered with the ability to

spot opportunities and make recommendations for improvements.

Kaizan recognises that employees are better placed to make suggestions.

Employees are motivated and involved. Smaller changes are easier to

implement than larger ones.

Kaizen

What do you think are the potential

problems of implementing a

successful Kaizen programme?

For TBM the aim is to reduce time wasted or unproductive time to improve efficiency.

How does it work? Staff are trained to be

able to perform a number of tasks.

Flexibility in the production process is key.

Time-based Management

What are the benefits to the this method?

Write them down…..

End123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960 BENEFITS

Quicker time to market. Improved ability to

respond to changes in market conditions or consumer tastes.

What is the lean production method that is based on reducing time wastage?

Time-based Management

Explain a benefit of using this method?

Test what you know….

It is an approach to improving efficiency and performance through continual improvement.

Kaizen

Explain a drawback of using this method?

Test what you know….

It aims to reduce waste by limiting the stock holding at each stage of the production

process.

Just-in-time

Explain a benefit of using this method?

Test what you know….

Critical Path Analysis

CPA is the use of network diagrams to help plan and complete complex projects in the shortest time possible by identifying those activities that be carried out simultaneously.

Application can be used in areas such as:

A marketing campaign. Launch of a new

product. Opening a new store. Relocating a business.

Re-cap Learning Objectives

You should now be able to:

1. Identify a range of techniques associated with lean production and the benefits of use for larger businesses.

2. Interpret and complete critical path networks

3. Assess the benefits and limitations of critical path analysis.