Interpretation:
Changes in the operation of the system.
Concept Introduction: Lean operation is a process in which a business should focus on continuous improvement with minimum resources and elimination of wastage. It is a process which is adopted by business to work efficiently and wastage must be reduced to the maximum level. It’s main focus is to create customer satisfaction and eliminate implicit cost. It’s principal is to smoothen manufacturing process so that operation of business can be efficiently done. Moreover, delegation of work is important rather than having work load at the same team so that perfection can be attained.
Explanation of Solution
The firm has not replaced its inventory with the intention to be lean. Lean operation will succeed only when there is constant supply of materials. In order to adopt lean operation, the firm should establish good long-term relation with a single supplier. As the firm faces uncertainties in supplies, the implementation lean will reduce the production because of inadequate supply of raw materials.
It is not advisable to adopt lean when the firm faces uncertainties in supplies. The firm’s production will fall drastically because of the unavailability of raw material.
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Chapter 12 Solutions
Practical Operations Management
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