ECON 2560 Study Guide - Final Guide: Toyota Production System, Material-Handling Equipment, Lean Manufacturing
20 Feb 2014
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Chapter 16: just in time and lean operations: focus of processes in this chapter, drive all waste out of the production process. Inventories exist just in case something goes wrong, creates padding when there is a variation from the production process. Just-in-time inventory: the minimum inventory necessary to keep a perfect system running. Inventory tactics: use a pull system to move inventory, reduce lot sizes. Eliminate waste by reducing investment in inventory. Lowering order sizes increases the number of orders but drops inventory size. Production order quantity form: q*p = 2ds/h(1-d/p, d = annual demand, s = set up, h = holding cost, d = daily demand, p = daily production set up cost, s = (q^2(h)(1-d/p)/2d. Employee learning: empowerment, continuous improvement, respect for people, standard work practices. Inventory: motion movement of people or equipment, product defects. Defines what tasks need to be done and how they are to be coordinated among functions, people and organization: process strategy.
