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Unformatted text preview: Student: Mukhtar Lakha
Instructor: Robert Nicholson
Date: 9/29/11 E4—29A
to) Course: Acct2302-7502-Robert Nicholson-Fall 2011
Book: Braun: Managerial Accounting, 2e
Time: 7:34 PM Briefly describe how lean production systems differ from traditional production systems along each of the
following dimensions: . Inventory levels . Batch sizes . Setup times . Physical layout of plant . Roles of plant employees
. Manufacturing cycle times
. Quality \lCDU'I-bOOMA 1. Inventory levels . . . . V . .
Lean production systems strive to maintain low Inventory levels. Lean producers try to purchase raw materials "just in time" to meet the production schedule , and have the finished inventory ready "just in time" to meet customer demand‘. Traditional production systems maintain greater quantities of
raw materials, work in process and finished goods inventory. 2. Batch sizes Lean production systems produce units in much smaller batches than‘ traditional production systems. These
batches are "demand-pulled" through production, rather than "pushed through" production This allows the company to only produce what customers have ordered ‘. 3. Setup times Lean production systems stress short‘ set-up times. By keeping set-up times at this length, lean producers do not have to worry about keeping extra inventory on hand just to be able to quickly meet demand. 4. Physical layout of plant Lean producers tend to organize their plant into self-contained production cells
this way, lean producers
are able to minimize interruptions and time spent moving materials and work in process inventory. This, in turn, . By organizing the plant reduces ‘ the time it takes to produce the product. In contrast, traditional producers tend to group like machinery together in different areas of the plant‘. 5. Roles of plant employees At lean producers, plant employees are cross-trained to perform about every role that is needed in each production cell . They also quality inspections. As a result, employees tend to have higher ‘ morale. Additionally, this decreases bottlenecks caused by having to wait for the "right person" to come do the job. ‘ perform the 6. Manufacturing cycle times V Lean producers put great emphasis on shortening their manufacturing cycle times. Lean producers need to have short cycle times since they have very little, if any, safety stock ready to sell to
customers. 7. Quality Page 1 Student: Mukhtar Lakha Course: Acct2302-7502-Robert Nicholson-Fall 201 1
Instructor: Robert Nicholson Book: Braun: Managerial Accounting, 2e
Date: 9/29/11 Time: 7:34 PM E4-29A Lean producers stress high quality in every aspect of production ‘. Since lean producers have (Similar very little, if any,‘ stock, they need to be able to produce the product right the first time. Lean producers tend
to) (cont) to "build-in" quality, rather than "inspect in" quality as traditional firms do. YOU ANSWERED: build high
in stock in the warehouse as a reserve
much larger batches than
maintain adequate levels of raw materials
need to keep extra inventory on hand in order to quickly meet customer demand
organize their plant into self- contained cells
But they do not
maintaining inventory levels, than on
quantity over quality in every aspect of production a large supply of Page 2 ...
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This note was uploaded on 01/13/2012 for the course ACCOUNTING 2302 taught by Professor Harris during the Fall '11 term at Dallas Colleges.
- Fall '11