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INTRODUCTION

INTRODUCTION. LEAN PRODUCTION. WHAT IS LEAN PRODUCTION? Reducing cost Profit maximization Values to the customers Continuous improvement (Kaizen). BENEFITS OF LEAN PRODUCTION. PRODUCTIVITY IMPROVEMENT LESSER PLANT SPACE REQUIRED REDUCE MANUFACTURING TIME QUALITY IMPROVEMENT

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INTRODUCTION

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  1. INTRODUCTION

  2. LEAN PRODUCTION WHAT IS LEAN PRODUCTION? Reducing cost Profit maximization Values to the customers Continuous improvement (Kaizen)

  3. BENEFITS OF LEAN PRODUCTION • PRODUCTIVITY IMPROVEMENT • LESSER PLANT SPACE REQUIRED • REDUCE MANUFACTURING TIME • QUALITY IMPROVEMENT • BETTER LABOUR UTILIZATION

  4. ECONOMIES OF SCALE WHAT IS ECONOMIES OF SCALE The advantages of large scale production that results in lower unit(average) cost TYPES • Internal economies of scale • External economies of scale

  5. ALDI AND ECONOMIES OF SCALE Principles of “time based management” PRODUCT– ALDI specializes in its own brand labels PRICE– Purchasing from local suppliers PLACE– Less floor space required PEOPLE– Multi-skilled employees PHYSICAL EVIDENCE –Waste management PROCESS– Cost efficiency in delivery of its services

  6. WHY IS LEAN REQUIRED IN RETAIL? • Exactlywhat the customer wants • Wherethe customer wants it • Whenthe customer wants it • In the quantitythe customer wants it ENTER - SEEK - FIND - SELECT - TRANSACT

  7. HOW TO HELP THE CUSTOMER? • SORT (Seiri) -Separate the necessary things from the unnecessary and discard the unnecessary • SET IN ORDER (Seiton) - Neatly arrange and identify things for ease of use • SHINE (Seiso) - To always clean up; to maintain tidiness and cleanliness in your workplace • STANDARDIZE (Shitsuke) - To have workers make a habit of always conforming to rules • SUSTAIN (Seiketsu) - To constantly maintain the 4S above

  8. CONCLUSION

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