In the context of operations and supply chain management, lean production is the process of reducing waste by eliminating non-value added activities and by optimizing value-added activities. Waste can be defined as anything that does not add value to a product from a customer’s perspective. There are seven types of waste: waste from overproduction, waste of waiting time, transportation waste, inventory waste, processing waste, waste of motion, and waste from product defects. Unlike manufacturing, it is difficult to reduce waste in service operations due to three of reasons. In service operations, it is difficult to standardize tasks times due to variability and uncertainty because each service delivery is somewhat unique. It is also difficult
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Lean production must occur throughout the supply chain. There are multiple different components of the supply chain. These components include lean suppliers, lean procurement, lean manufacturing, lean warehousing, lean logistics, and lean customers. In the 1970’s, Japan conceptualized the ideas behind lean production and began implementing just-in-time (JIT) production concepts at a Toyota manufacturing plant. Just-in-time production concepts are now considered to be the benchmark for lean manufacturing. Just-in-time (JIT) production can be defined as a way to produce what is needed at the exact time that it is needed without creating waste. Anything that is produced over the minimum amount necessary is considered waste. According to just-in-time production concepts, it is important to keep transfer quantities small and inventories low. In summary, JIT attempts to produce products and services in a timely and cost-effective …show more content…
Some advantages of just-in-time (JIT) include less waste, lower costs, and higher profits. Since non-value-added activities are eliminated from production, space, time, and money are all saved as a result of JIT. The money that would be used to fund the non-value-added activities can now be used to fund other expenses. Another advantage of just-in-time production is the fact that it exposes problems with productivity and quality that would have otherwise been hidden by excess inventories and staff. Productivity and quality problems include machine downtime, scrap, vendor delinquencies, change orders, engineering design redundancies, inspection backlog, paperwork backlog, etc. Excess lead time and customer orders are two components of the supply chain that could potentially hinder the effectiveness of just-in-time (JIT)
Lean production must occur throughout the supply chain. There are multiple different components of the supply chain. These components include lean suppliers, lean procurement, lean manufacturing, lean warehousing, lean logistics, and lean customers. In the 1970’s, Japan conceptualized the ideas behind lean production and began implementing just-in-time (JIT) production concepts at a Toyota manufacturing plant. Just-in-time production concepts are now considered to be the benchmark for lean manufacturing. Just-in-time (JIT) production can be defined as a way to produce what is needed at the exact time that it is needed without creating waste. Anything that is produced over the minimum amount necessary is considered waste. According to just-in-time production concepts, it is important to keep transfer quantities small and inventories low. In summary, JIT attempts to produce products and services in a timely and cost-effective …show more content…
Some advantages of just-in-time (JIT) include less waste, lower costs, and higher profits. Since non-value-added activities are eliminated from production, space, time, and money are all saved as a result of JIT. The money that would be used to fund the non-value-added activities can now be used to fund other expenses. Another advantage of just-in-time production is the fact that it exposes problems with productivity and quality that would have otherwise been hidden by excess inventories and staff. Productivity and quality problems include machine downtime, scrap, vendor delinquencies, change orders, engineering design redundancies, inspection backlog, paperwork backlog, etc. Excess lead time and customer orders are two components of the supply chain that could potentially hinder the effectiveness of just-in-time (JIT)