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I don't agree lean production would improve performance of Burneside confectionary ltd because the concept of lean production involves employees to be expected to take an active role within the organisation. Employees need to remained motivated however, Burnside staff will not be expected to hold high morale due to threat of intensive capital overusing their purpose in the business, resulting in a lower labour intensive work environment. This will be expected to lead to high labour turnover, disaticified staff will becoming unsure of their job role, resulting in the number of people who leave their job to rise. However, as staff are needed for some aspects of production, Burneside will have there costs risen to allocate recruitment and trying for potential staff. Overall, a factor to maintain staff loyalty will use the costs used to repay the overdraft to lengthen over a longer period of time than eight years. This may lead to corporate objectives go undermined by mangers such as Joanne Huck, in the long term the finance owed can extend and create worsen conditions concerning the businesses cash flow.

I also disagree because when using lean production, maintaining good relationships with suppliers is important. If Burneside meets its predicted unprofitable cash flow position as a result of high labour costs it can ensure delays within the business. As a result, suppliers will provide credit and paid within thirty days therefore, it results in Burneside responding slower that what would be expected.It can lead to conflicts of interests with confectionary suppliers to create a poor reputation of efficiency. Therefore, suppliers will result to increase competitiveness of other existing confectionary brands in a popular market. Reputation of Burneside will occur to reduce the number of units expected to be sold.

However, i can agree it could improve performance due to its main concept is to remove waste within the production line. It adapts a motion, workers will appear busy however, doesn't add value because introduction of technology can cover the same purpose at a lower cost. By removing unwanted costs it can result in greater efficiency to meet changing market conditions and costs become improved to be used elsewhere. Therefore, meet customers needs and specifications which will result in the number of sales to become increased as able to to change products quickly such as alternative flavours in confectionary produced. Number of sales which increase will mirror revenue therefore, expected loan can be repaid quicker than under the budgeted time period resulting in efficiency reflected in Burnsides overall performance.

However, it depends on the level of demand .Burnside has few staff member compared to large confectionary brands, therefore the workload can't be distributed within a wider workforce reducing employee morale. Turnover will result in added costs to the valued without its added value. Effecting the level of costs the business has to spend, the higher the costs the longer it will take to repay an overdraft but overall will depend on the level of demand expected, if demand is high higher costs are required to produce the product. The businesses performance will vary depending on demand because it can limit the efficiency in delivering the product to the customer compromising the quality of the product and relationships with staff and suppliers.