- continuous improvement (kaizen)
- JIT
Kaizen
make iterative small improvements in many production processes
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employees receptive to small and incremental changes rather than big changes
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time consuming and expensive (schedule meetings, cost of staff training, upskilling)
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emphasize process improvement
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eliminate waste
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teamwork!
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empower employees - acknowledge employee expertise
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big data + data analysis
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incremental improvements
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promote process standardization
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pursuit of perfection
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customer orientation
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embrace change
JIT
- don’t stockpile. build and ship off advantages
- no need for buffer stocks
- avoids stockpiling (insurance storage costs)
- improve liquidity
- foster lean production disadvantage
- high admin and implementation costs as orders are placed in small quantities
- does not let a firm enjoy economies of scale
- risk of running out of stock
- reliant on 3rd party suppliers to deliver parts on time
