Operations And Supply Chain Management : Lean Production Essay

984 Words Dec 4th, 2016 4 Pages
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 to reduce waste in service industries due to an uncertainty in demand. Lastly, the roles of customers contribute to the difficult task of eliminating waste. Although it is difficult to reduce waste in the service industry, there are some lean techniques that have been successfully applied to service firms. These techniques include organizing problem-solving groups, upgrading housekeeping, upgrading quality, clarifying the process flows, revising equipment and process technologies, leveling the facility load, eliminating unnecessary activities, reorganizing physical configuration, introducing demand-pull scheduling, and, lastly, developing supplier networks. These are all successful ways to optimize value-added activities and…

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