Lean production is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System or just-in-time production.
The 10 rules of lean production can be summarized:
1. Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement
Changes in labor laws in 2008 created a category called permanent employees. Every worker must have a labor contract. There is a tenure agreement in the labor contracts that typically span one to three years.
When these agreements expire they may be renewed but once a worker becomes a permanent employee under the law terminating them is extremely difficult. One of the keys to China’s success was liberal policies around labor but these laws have tightened.