MGT 3501 Lecture Notes - Lecture 10: Lean Manufacturing, Finished Good
Document Summary
Production line is controlled by the last operation (selling a finished good) Production line doesn"t start until a sale is made. Efficiency of the entire process is the goal. Don"t care about how busy each individual to a workstation is, care about the entire process. May have a bunch of machines and laborers, but if the order is only limited, then we only want to make that amount. Not going to have large buffers between each workstation. Focuses on materials being busy not workstations. Want materials to always be in process. Not looking at efficiency of work station but at the efficiency of the material. Operators only work when there is a need to produce. Can be scary because there is a lot of workers idle. Main problem is not selling to keep workers busy, but even paying workers for idle, can be cheaper than to pay for products that will be in inventory.
