PHYSICS 102 Lecture 7:
Document Summary
Lean = a systematic approach that helps managers identify and reduce/eliminate waste and variance in the processes under their control. Just-in-time = an older name for lean systems. Toyota production system (tps) = another term for lean systems, refers to the specific lean system implemented by toyota. Lean systems approach = a philosophy that emphasizes the minimization of the amount of all resources used in the various activities of the enterprise. By becoming lean a firm can significantly lower its break- even production quantity (=the minimum amount of output the firm needs to sell in order to make profit. Lean increases the contribution margin (=difference between the price and the firm s direct costs) With no waste of labour, materials, or equipment. Using methods that reinforce the occupational development of workers in the minimum possible lead times. Five important principles: precisely specify value for each specific product, identify the value stream for each product.
