Question

Why Manufacturing Companies focuses on Lean Thinking?

What is meant by the term overproduction? Why do you think this has been described as the biggest waste of all?

Assess the reasons for using lean thinking. What are the benefits from Suppliers to end users?

Answer 1

Manufacturing companies focus on lean thinking to reduce the waste or defects and to streamline their entire process. This also helps to eliminate the nom value added activities and optimize the total resources. The lean methodologies can reduce the inventory and also can enhance the productivity.

Over production refers to the production of materials beyond the requirements. This results in the excess stock of inventories which also happens to rise the storage and inventory carrying cost . This has been described as major waste because of higher cost involves in sources cng raw materials, processing and converting to the finished goods. Thus overproduction became a waste for an organization when there is no demand and it incur lot of cost.

Suppliers can estimate the right demand and can ensure quality check to avoid any waste and this helps in establishing a smooth work flow of orders and maintain a good relationship with their clients. The company can estimate the demand and source it fron the right suppliers , reducing order cost, inventory storage and carrying cost. Lean initiative enhance productivity and also avoid any bottle necks through value streaming approach. The end users get benefit of this lean approach through proper order fulfillment and quality products.