Page 133 - E1 Integrated Workbook STUDENT 2018

Tools and techniques of operations management

Lean management

8.1 Introduction

Lean management is a philosophy that aims to systematically
eliminate waste through the identification and elimination of all
non-value adding activities. Wastes include:

 inventory
 waiting

 defective units
 effort or motion
 transportation

 over-processing

 over-production.

8.2 Advantages and disadvantages

Advantages Disadvantages

 Improved production  High initial outlay.
scheduling.
 Requires a change in
 Small batch or continuous culture.
production.
 Part adoption.
 Economies of scope.
 Cost may exceed benefit.
 Continuous improvement.

 Zero inventory.

 Zero waiting time.

121