1 Carlos owns a private limited company called BettaBakers Limited. It produces

a variety of cakes which are sold in local shops. The method of production

used by BettaBakers is batch production. Carlos says 'I have been told that lean

production techniques in the bakery would help me to increase profits'.

a) What is meant by 'lean production'?

b) Identify two ways lean production might be achieved.

c) Identify and explain two ways, other than lean production, Carlos could

use to increase productivity.

d) Identify and explain two advantages to Carlos of using batch production.

e) Do you think Carlos should change his production methods to flow

production in the bakery? Justify your answer.

A) Lean production basically focuses on using all of the waste that a company produces in all of its processes so that no actual resources are left unused.

B) In this scenario, this can be achieved by using all of the excess baking mixtures and combining them into extra products as well as recycling used containers.

C) Carlos could either lower costs by using cheaper materials or hire more employees.

D) Batch production allows Carlos to produce large quantities of his products at a much faster and therefore more efficient pace. This also increases profits as they have more supply to match the demand.

E) This depends on whether or not Carlos has sufficient demand for his products. Otherwise, he would waste large amounts of money on implementing a flow production method and then not have enough demand to sell all of his products, which will therefore cost him even more money in losses.