MARKET 1 Lecture Notes - Lecture 15: Management System, Balanced Scorecard, Features New To Windows 8
Document Summary
Chapter 13 jit/lean production: just-in-time (jit): philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. In a broad sense, it applies to all forms of manufacturing and to many service industries as well. Used synonymously with lean: lean: philosophy of production that emphasized the minimization of the amount of all the resources, including time, used in the various activities of and enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers. The lean perspective on inventory: tries to reduce raw material, wip, finished goods inventory -> inventory as waste. Lowering inventory levels forces firms to address poor practices: lean approach tries to gradually remove water until first rock is expired, thereby establishing a priority as to the most important obstacle to work on. After solving this problem the process of reducing inventory continues.