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Business Studies IGCSEPDF 140
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Efficiency
Producingthemaximum output with minimum input.
Lean production
Aims to reduce waste and improve efficiency.
Ways to improve productivity
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Training workers(increasesskill and efficiency).
Improved technology or machinery.
Better motivation and incentives.
Better organisation of production process.
Specialisation and division of labour.
Types of waste: time, resources, overproduction, defects, movement, etc.
Methods include:
● Kaizen (continuous improvement): Small, constant improvements by workers.
● Just-in-time (JIT): Materials arrive only when needed — reduces inventory costs.
● Cell production: Teams handle complete units of work, increasing motivation.
● Just-in-case (JIC): Opposite of JIT, where stock is held for emergencies.
Advantages of lean production:
● Lower waste, lower costs.
● Better quality and productivity.
● Increased worker responsibility and motivation.
4.2 Efficiency and Lean Production