Discuss the principles underlying the lean manufacturing approach
Pull Processing. Products are pulled from the consumer end (demand), not pushed from the production end (supply).
Perfect Quality. Success of the pull processing model requires zero defects in raw material, work in process, and finished goods inventory.
Waste Minimization. All activities that do not add value and maximize the use of scarce resources must be eliminated. Waste involves financial, human, inventory, and fixed assets.
Inventory Reduction. The hallmark of lean manufacturing firms is their success in inventory reduction. Such firms often experience annual inventory turnovers of 100 times per year.
Production Flexibility. Long machine setup procedures cause delays in production and encourage overproduction. Lean companies strive to reduce setup time to a minimum, which allows them to produce a greater diversity of products quickly, without sacrificing efficiency at lower volumes of production.
Established Supplier Relations. A lean manufacturing firm must have established and cooperative relationships with vendors. Late deliveries, defective raw materials, or incorrect orders will shut down production immediately since this production model allows no inventory reserves to draw upon.
Team Attitude. Lean manufacturing relies heavily on the team attitude of all employees involved in the process. Each employee must be vigilant of problems that threaten the continuous flow operation of the production line.
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