The CFO thought it might be of benefit to the entire senior staff, for you to share your thoughts on the pros and cons of lean manufacturing, as well as how the firm's existing MRP system may help or hinder moving to this kind of manufacturing methodology.
At the next weekly managers' meeting, he asked you to explain the following:
How do lean manufacturing and pull versus push systems differ from traditional manufacturing? What are the advantages and disadvantages of lean manufacturing?
What concerns will you have if the company tries to move toward this new kind of manufacturing? Specifically, how may the existing MRP system help or hinder that effort?
Lean manufacturing differs from traditional manufacturing systems because it uses JIT technique. The inventory is reduced and this helps reduce costs. In traditional manufacturing an inventory of raw materials is maintained. Another difference is that lean manufacturing uses the pull strategy. The ultimate pull is exercised by the customer. The principles that distinguish lean manufacturing from traditional manufacturing are flexibility, maintaining long term relationships with suppliers, waste minimization, autonomation, perfect first time quality, and continuous improvement. The pull strategy also means that customer preferred features are incorporated. Pull also means built to order in contrast with push which is target driven. Pull also means that staff change agents do the improvements. If the management does the improvement, there will be push implementation instead of pull. The lean ...
The answer to this problem explains the pros and cons of lean manufacturing . The references related to the answer are also included.