Studied by 2 people
Just in Time (JIT)
A situation where a company does not allocate space to the storage of components or completed items
Just in Case (JIC)
A company produces a small stock of components or products and stores them as inventory. This is Just-Incase a rush order comes they have ready supply.
Lean Production
Lean production considers product and process design as an ongoing activity and not a one-off task. It should be viewed as a long-term strategy that focuses on continual feedback and incremental improvement.
10 Principles of Lean Production
Elimination of waste from various areas (JIT) Minimizing inventory Maximizing production flow a Kaizan Respect for workers Pulling production from customer demand Designing for rapid changeover Creating a reliable partnership with suppliers Meeting customer requirements Doing it right the first time
Value Stream Mapping
Value stream mapping is a lean production management tool used to analyze current and future processes for the production of a product through to delivery to the consumer.
Role of the Workforce
Training
Lead Time
Lead time refers to the time quoted to customers (usually in days or weeks) between the date of purchase and the date of delivery.
The 5 S’s
Sorting
The 7 Wastes
Overproduction
CIM
A system of manufacturing that uses computers to integrate the processing of production
Cost-effectiveness
The most efficient way of designing and producing a product from the manufacturer’s point of view.
Value for Money
The relationship between what something
Fixed Costs
The costs that must be paid out before production starts
Variable Costs
Variable costs are costs that change in proportion to the goods or service that a business produces
Break-even
It is the point of balance between profit and loss. It represents the number of sales of a product required to cover the total costs (fixed and variable).
Pricing Strategies
Price-minus
