The result may be continued production of items whose

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producer will be slow to react to changes in the marketplace. The result may be continued production of items whose demand is dropping and may soon be obsolete. Alternatively, the producer may fail to recognize changing customer requirements and ramp up production of desired goods. The ultimate impact will be missed opportunities, unrecoverable costs, and/or missed revenues. Lean production is an integrated set of activities designed to minimize the movement and use of raw materials, work-in-process, and finished goods inventories during production. A principal focus of lean manufacturing is to minimize all forms of waste and to produce quality products without the need for rework and production relies on pull-based systems to coordinate production and distribution with actual customer demand rather than a potentially error-laden forecast of demand. In a pull system, the producer only responds to customer demand. No action is taken until an order is placed or a purchase is made. One of the main benefits of a lean, pull-based system is the reduction of waste. There are a few challenges are inherent in the pull-based strategy such as customers who want immediate access to products and don’t want to wait for production and delivery and , it can be difficult to achieve economies of scale in assemble-to-order and build-to- order product operations, making them more expensive to produce. Finally, a lack of technological capabilities makes it difficult to achieve the supply chain visibility and synchronization needed in pull-based systems. Although many companies have made significant gains during the evolution from mass production to lean production processes, perfection has not been achieved. (Page 594) 5. Using the Business and Company Resource Center ( .com/bcrc) and company websites, compare the supply chain and contract manufacturing services provided by the following organizations: a. Flextronics () and Ditan Corporation () b. Accupac () and Jabil Circuit () c. ModusLink () and Cott Corporation ( ) Answer: Evaluate the students’ work on its own merits. 6. Identify and discuss the most appropriate assembly process and facility layout for each of the following products:

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