Briefly compare a traditional manufacturing environment with a lean production and just-in-time (JIT) manufacturing environment


In a traditional environment, inventories of raw materials, work in process, and finished goods are accumulated in order to act as buffers in the event of unexpected demand. Typically, there is a "push" approach where the manufacturing process is started before the customer order is taken and inventory is subsequently pushed through the manufacturing process. In addition, the factory is organized where similar machines are grouped together. Machine operators do not need to be highly trained because they use very few different machines.

In a lean production and just-in-time (JIT) environment, there is a "pull" approach where the manufacturing process is not started until a customer order is taken. Buffers of inventory are not accumulated. In addition, the factory is laid out in manufacturing cells where all the machinery needed to make a product is available in one area. There is usually a limited number of highly reliable suppliers used and employees need to be highly trained and reliable as well. Emphasis is placed on reducing waste by not producing more product than is needed, not over-processing a product, not moving products or people more than is needed, and eliminating down time caused by people waiting for work to do and products waiting in mid-assembly.

Business

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Informational hand-holding:

A) arises from an organization's sensitivity to customer discomfort. B) must never be used with employees. C) should normally be avoided except in the most personal situations. D) All of the above.

Business

Which of the following is/are true?

a. The percentage-of-sales procedure (1) estimates the amount of uncollectible accounts that will likely occur over time in connection with sales of each period and (2) makes an entry debiting Bad Debt expense and crediting Allowance for Uncollectible Accounts. b. The aging-of-accounts-receivable procedure (1) estimates the amount of outstanding accounts receivable that the firm does not expect to collect and (2) adjusts the balance in the Allowance for Uncollectible Accounts so that, after the entry to recognize estimated uncollectibles, the balance in the account will equal the amount that the firm does not expect to collect. c. The percentage-of-sales and the aging-of-accounts-receivable procedures should produce a balance in the Allowance for Uncollectible Accounts that is approximately the same at the end of each period. d. all of the above. e. none of the above.

Business

To reduce the variability of its output and improve its productivity, a service firm might ______.

a. decrease the degree of customer interaction b. increase the degree of customization it provides c. switch to a different product d. switch to a different market

Business

It took 100 hours to produce the first unit and 95 hours to produce the second unit. How many hours are required to produce the eighth unit? [Note: a calculator is required to answer this question.]

A) fewer than or equal to 60 hours B) greater than 60 hours but fewer than or equal to 75 hours C) greater than 75 hours but fewer than or equal to 90 hours D) greater than 90 hours

Business