Answer the following questions for Part A:

1. What is meant by lean production? Describe two ways in which lean production at Portakabin leads to a more efficient use of resources. (12 marks, 300 words) Lean production, as the name suggests involves producing goods and services while stripping out waste. As a result there is no 'fat' involved in production. Lean production is efficient and hence likely to be profitable. There are many advantages for such method include; waste is substantially reduced or eliminated, costs fall leading to higher profits, the work area is cleaner, less cluttered, and easier to operate in, there is less damage to equipment, and stocks and there are fewer accidents at work.

The benefits of lean production Financial Predictable construction time saves labour costs Shorter lead time - gives happy customers Quality control less waste, rework, unsatisfied customers Environmental Buildings 96% recyclable Better at retaining heat Social Reduced noise and pollution nuisance for communities Improved health & safety. It helps to reduce waste In manufacturing process Modules completed and fitted out off site Fewer workers and less transport required Use of standard width or pre-sized materials Re-use of door and window cut-outs Recycling waste Color coded bins for collection of different types of waste Waste management teams to look for new ideas Volume of waste to landfill reduced by 60% over 3 years. While the main financial benefit include predictable construction where the weather condition cant effect on the operation because of the factory based. 99.6% of Portakabin projects are delivered on time and on budget. Also; lean production help the company to finish its projects on time as it can build up 50% than traditional one. Another benefit is the quality control where the companys quality management system use lean manufacturing method to produce high quality at every stage of operation.

2. Explain how just-in-time production would operate in delivering and assembling a new Lilliput Childrens Centre. (15 marks, 300 words) Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Just in time help in design Lilliput Childrens Centres because the project will perform only in half time than traditional method, moreover there are Multi-functional rooms can be used as kitchens, crche facilities, and training rooms as well as nurseries. Moreover; the Lillput children project system are designed to be child-focused. They meet the tough safety and care standards that have been created to protect children: where the Childrens Centres provide a resource for the whole community. Just-in-time (JIT) Just-in-time Keeps down costs of stock or raw materials Less storage space needed Releases working capital Customer demand pulls orders through system Ensures orders exactly meet customer requirements Problems may be discovered early and save rework Portakabins information technology systems record available supplies Ensures required components ordered in time to meet demand The main advantages for just in time are lower stock holding means a reduction in storage space which saves rent and insurance costs, as stock is only obtained when it is needed, less working capital is tied up in stock. There is less likelihood of stock perishing, becoming obsolete or out of date, avoids the build-up of unsold finished product that can occur with sudden changes in demand. Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time.

3. Evaluate the impacts on Portakabin of using lean production. (15 marks, 400 words) The use of method study in the company will be able to identify the best way of handling and scrutinizing the means of production in a company so as to make them efficient . It 's used in improving the quality work of the company generally in all the activities executed not excluding the daily operations which are repetitive . The method study will be used by the company in coming up with the best techniques which are appropriate in the execution of the company operations . This involves the selection of the operations which need to be done or studied . The other way is have detailed records of the company operations . The rec information should be studied in details so as to come up with the best changes which should be made . The study will therefore bring out the issues which are to be developed and installed so as to bring the relevant system in place so as to effective execute its operations . The new system which has been installed should be well maintained in a proactive way so as to ensure that the operations are not affected (Glossop , 2007 Moreover; the system which is used by the Portakabin Company is the one which has great advantages than any other system . The quality management system offers great advantages to the company than the use of the quality control system . The management system ensures that the buildings constructed are permanent and longer lasting without any effects or measures which will make the building be under any issues which relates to the poor maintenance and its life . The system also ensures that the buildings are of the current standards which ensure that it can only be relocated and are under the modular technique. Moreover lean production help the company to reduce wastes through recycling of materials. The buildings are constructed in sections. Later they can be taken apart in simple steps. The steel is 100% recyclable so 96% of the total building is recyclable. Moreover; Portakabin established team for waste management formed by production manager and waste contractor. They give regularly training courses to update them with new ideas.