OM 300 Lecture Notes - Lecture 16: Toyota Production System, Lean Manufacturing, Operations Management

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Jit/lean operations: good production systems require that managers address three issues that are pervasive and fundamental to operations management: eliminate waste, remove variability, and improve throughput. Jit emphasizes forced problem solving: tps emphasizes employee learning and empowerment in an assembly-line environment, lean operations emphasize understanding the customer. Jit systems require managers to reduce variability caused by both internal and external factors: variability is any deviation from the optimum process, less variability results in less waste. Sources of variability: incomplete or inaccurate drawings or specifications, poor production processes resulting in incorrect quantities, late, or non- conforming units, unknown customer demands. Just-in-time (jit: powerful strategy for improving operations, materials arrive where they are needed when they are needed. Identifying problems and driving out waste reduces costs and variability and improves throughput: requires a meaningful buyer-supplier relationship. Jit partnerships exist when a supplier and purchaser work together to remove waste and drive down costs: four goals of jit partnerships are:

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