A2 Business Resource

1. Do Now:
Location Re-cap
1. What is meant by the term ‘optimal
location’?
2. How might the increasing use of 5 minutes
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.
End

2. Operational Strategies: Lean
Production

3. Learning Objectives
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.

4. Lean Production Techniques
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?
TNJ-UIS-IMTE IANEKZ TIME-BASED
ME-BSMEM
JUST-IN-TIME KAIZEN
MANAGEMENT
AAINATGEDNTE

5. Just-in-time (JIT)
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.

6. Why would firms to do this?
Think Pair Share
Write down one Walk around the Share your ideas
reason for and room until the with the rest of
one reason music stops and the group.
against share your ideas.
Reasons FOR Reasons AGAINST
• Minimise the cost of holding and • Can take time and money to
storing stock introduce.
• No obsolete or ruined stock. • Risk if long supply chain.
• Possibly reduced insurance costs. • Systems have to be reviewed and
• Made to order. new systems put in place.
• Can lead to a competitive • Possible high staff training costs
advantage. and may need to purchase new IT
systems.

7. Kaizen
Kaizen – is an approach to improving
efficiency and performance through
continual improvement.
How does it work?
Staff are empowered with the ability to What do you think are
spot opportunities and make the potential
recommendations for improvements. problems of
Kaizan recognises that employees are implementing a
better placed to make suggestions. successful Kaizen
Employees are motivated and involved. programme?
Smaller changes are easier to
implement than larger ones.

8. Time-based Management
For TBM the aim is to What are the benefits to the
reduce time wasted or this method?
unproductive time to
improve efficiency. Write them down…..
BENEFITS
How does it work?
Staff are trained to be able End
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Quicker time to market.
Improved ability to respond
to perform a number of
tasks. to changes in market
conditions or consumer
Flexibility in the production tastes.
process is key.

9. Test what you know….
What is the lean production method that is based on
reducing time wastage?
Time-based Management
Explain a benefit of using this method?

10. Test what you know….
It is an approach to improving efficiency and
performance through continual improvement.
Kaizen
Explain a drawback of using this method?

11. 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?

12. Critical Path Analysis
CPA is the use of network Application can be used in
diagrams to help plan and areas such as:
complete complex
projects in the shortest A marketing campaign.
time possible by
Launch of a new product.
identifying those
Opening a new store.
activities that be carried
out simultaneously. Relocating a business.

13. 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.