Microeconomics
Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
bartleby

Concept explainers

Question
Book Icon
Chapter 2, Problem 2QFT
To determine

To Explain:

How lean manufacturing enhances the allocation efficiency of the economy.

Concept Introduction:

Lean Manufacturing:

Lean manufacturing or simply lean refers to a systematic method for waste minimization within a manufacturing system without the loss of productivity. A more precise definition of the term is “doing more with less by employing 'lean thinking.' Lean manufacturing involves never-ending efforts to eliminate or reduce waste in design, manufacturing, distribution, and customer service processes.”

Waste in this context is defined as any activity that does not add value from the customer’s perspective. In lean manufacturing there are seven types of waste:

  1. Over-production against plan
  2. Waiting time of operators and machines
  3. Unnecessary transportation
  4. Waste in the process itself
  5. Excess stock of material and components
  6. Non-value-adding motion
  7. Defects in quality

Blurred answer
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education