MARKET 1 Lecture Notes - Lecture 11: Absenteeism, Six Sigma, Lead Time
Document Summary
Just-in-time (jit) a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity (used synonymously with lean) Lean a philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of an enterprise (used synonymously with jit) The key component of the lean philosophy is a never-ending effort to eliminate waste. Inventory is seen as a form of waste in and of itself but also because inventory can cover up wasteful business practices. 1: under lean, the approach is to gradually remove the water (inventory) until the first rock (e. g. quality problems, absenteeism, equipment breakdowns, etc. ) is exposed, thereby establishing a priority as to the most important obstacle to work on. After resolving the problem, inventory levels are reduced further, until another problem (and opportunity to eliminate waste) appears this process continues indefinitely, or until all forms of waste and uncertainty have been eliminated.
