SCM 301 Chapter Notes - Chapter 13: Taiichi Ohno, Overproduction, Six Sigma
Document Summary
Just-in-time (jit): philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. Applies to all forms of manufacturing and to many service industries as well. Lean: philosophy of production that emphasizes the minimization of the amount of all the resources used in the various activities of an enterprise. Involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers. Waste: any activity that does not add value to the good or service in the eyes of the consumer. Overproduction: inflexible or unreliable processes may cause organizations to produce goods before they are required. Waiting: inefficient layouts or an inability to match demand with output levels may cause waiting. Unnecessary inventory: transporting goods always increases costs and the risk of damage, but it does not necessarily provide value to the but it does not necessarily provide value to the final customer.