INTBUS 6 Lecture Notes - Lecture 15: Business Process, Overproduction, Lean Thinking

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Chapter 13 jit/lean production just-in-time (jit): a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. In a broad sense, it applies to all forms of manufacturing and to many service industries as well. Lean: a philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of an enterprise. It involves identifying and eliminating non-value-adding activities in design, production, supply chain management, and dealing with customers. A key component of the lean philosophy is a never-ending effort to eliminate waste, which is defined as any activity that does not add value to the good or service in the eyes of the consumer . Commonly recognized sources of waste: overproduction, waiting, unnecessary transportation, inappropriate process, unnecessary inventory, unnecessary/excess motion, defects, underutilization of employees.

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