Chapter 3: 14-10DQ (page 368)
Why is lean hard to implement in practice?
Short Answer
Lean is the process of removing excess, unnecessary, waste material from the inventory to reduce the cost and additional losses and to increase profits.
Chapter 3: 14-10DQ (page 368)
Why is lean hard to implement in practice?
Lean is the process of removing excess, unnecessary, waste material from the inventory to reduce the cost and additional losses and to increase profits.
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Get started for freeQuestion: A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has a defective content on an average of 0.04. By inspecting all items, the inspector can remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is \(9. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of \)10 each when they are detected in final product testing.
Question: What is the cost to inspect each unit?
Can a supply chain become too lean? Explain your answer—using examples if possible.
A technique that is useful for screening potential locations for services.
The set of value-and non–value-adding activities required to design, order, and provide a product from concept to launch, order to delivery, and raw materials to customers.
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