E4-29A - Student Mukhtar Lakha Instructor Robert Nicholson...

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Unformatted text preview: Student: Mukhtar Lakha Instructor: Robert Nicholson Date: 9/29/11 E4—29A (similar 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 long need to keep extra inventory on hand in order to quickly meet customer demand increases organize their plant into self- contained cells But they do not lower maintaining inventory levels, than on quantity over quality in every aspect of production a large supply of Page 2 ...
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E4-29A - Student Mukhtar Lakha Instructor Robert Nicholson...

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