INTBUS 6 Lecture Notes - Lecture 27: Lean Manufacturing, Autonomation, Lean Services
23 Oct 2020
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Document Summary
Managers use many terms to describe lean systems, including lean production, just-in-time (jit) manufacturing, stockless production and the toyota production system (tps). The lean systems approach is a philosophy that emphasizes the minimization of the amount of all resources used in the various activities of the enterprise. Though elements of lean systems thinking have been around since the dawn of industrialization, credit is given to toyota for organizing these elements into what eventually became the toyota. The following graph shows several changes introduced by lean systems: the breakeven moves from q1 to q2, this is the quantity that needs to be sold to cover a company"s fixed operating costs. Lean systems outsource every step that is more efficient when outsourced, this lowers fixed costs. Lean increases the contribution margin (slope of red line), this means the firm can raise prices.
