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A situation where a company does not allocate space to the storage of components or completed items, and instead orders or manufactures them when required.
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, Devolution in power relating to process improvement, Kaizen
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, Stabilizing, Shining, Standardizing, Sustaining the practice
The 7 Wastes
Overproduction, Waiting, Transporting, Inappropriate processing, Unnecessary inventory, Unnecessary/excess motion, Defects.
CIM
A system of manufacturing that uses computers to integrate the processing of production, business and manufacturing in order to create more efficient production lines.
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, for example a product, is worth and the cash amount spent on it
Fixed Costs
The costs that must be paid out before production starts, for example, machinery. These costs do not change with the level of production.
Variable Costs
Variable costs are costs that change in proportion to the goods or service that a business produces, i.e. reliant on output.
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, Retail price, Wholesale price, typical manufacturing price, target cost, return on investment (ROI), unit cost, sales volume, financial return
Note 
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