Examine the main benefits for a company such as General Motors of adapting a system of lean production.

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A2 Business Lean Production Case Study

GM adopts Lean Production

Q: Examine the main benefits for a company such as General Motors of adapting a system of lean production.

There is need for change with GM, in 1998 they took 50% more hours to produce a car than Toyota do, this has probably caused them to make a loss on all there products also in the modern era thus why they're struggling for survival while Toyota sell more cars than them. main benefits TGM could gain from adopting lean production are cost and the stock process

One main benefit for GM of using lean production is the fall in costs which help to increase profits. Lean production uses less factory space overall, specifically because of the Just-in-time (JIT) process for stock. The JIT process is designed to give businesses stock for just when they need it, cutting out storage costs and insurance costs, which helps increase the profits GM can make. However, should GM choose to implement this process in all their 178 plants that are located across 12 countries, there are likely to be problems with supply of parts, especially if they require 300