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Application Of Lean Management Techniques

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Milestone #2 As a startup company, JikoPower has the luxury of conducting extensive evaluation of production needs including capacity planning and facility layout prior to expanding their physical infrastructure. In order to plan for facilities that will support growing demand for "The Spark," the company should accurately estimate production cycle time for the product, as well as determining any potential bottlenecks in the fabrication process. Application of lean management techniques can help aid in assessment of necessary inputs (labor, materials, equipment etc.) and development of an effective plan for development. The first step necessary for accurate process design is to determine an accurate cycle time for production of the …show more content…

This strategy would allow for profitability when consumer demand exceeds capacity, and minimize losses when capacity lags demand. Should the company experience consistent success over time, better financial posturing would allow the company to expand utilizing incremental or one-step expansion. At this time, JikoPower could also consider outsourcing manufacturing of their product to help mitigate risks associated with fluctuating market demand. Utilizing an average capacity approach to manufacturing a brand new product, the company should consider maintaining a larger than average capacity cushion for unexpected surges in demand inherent to new product releases. As more reliable demand data becomes available for the new product, the company can consider moving to a more conservative capacity cushion to help negate fluctuation in demand. “The Spark,” is constructed using a probe to absorb waste heat from the energy source, a fluid reservoir holding water (to create a temperature difference and encourage the free flow of energy), and a thermoelectric module which converts the waste energy into usable form. Additionally, the unit has a handle and USB port for easy handling and charging of devices, respectively. Image from http://www.veleladesign.com/JikoPower.html Proper cost/benefit analysis of inputs should be completed prior to

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