Chapter 6: Designing Lean
Systems
Lean systems = Operations systems taat maximize tae aauee added by eaca of a company’s
actiaities by remoaingr waste and deuays f rom taem
Taey encompass tae company’s operations strategry, process desigrn, qeauity managrement,
constraint managrement, uayoet desigrn, seppuy caain desigrn, and tecanouogry and inaentory
managrement and can be esed by bota seraice and manef acteringr frms
Lean systems afect a frm’s internau uinkagres between its core and sepportingr processes and
its externau uinkagres wita its cestomers and seppuiers
Continuous Improvement Using a Lean Systems
Approach
Just-in-time (JIT) philosophy = Tae beuief taat waste can be euiminated by cetngr
ennecessary capacity or inaentory and remoaingr non-aauee-added actiaities in operations
Tae groaus of a uean system are taes to euiminate taese eigrat types of waste, prodece seraices
and prodects onuy as needed, and to contineoesuy improae tae aauee-added benefts of
operations
JIT system = A system taat orgranizes tae resoerces, inf ormation fows, and decision reues
taat enabue a frm to reauize tae benefts of JT principues
Strategic Characteristics of Lean Systems
Supply Chain Considerations in Lean Systems
Two sauient caaracteristics of uean systems taat are reuated to creatingr and managringr
materiau fows in a seppuy caain:
- Cuose Seppuier Ties
Becaese uean systems operate wita uow ueaeus of capacity suack or inaentory, frms
taat ese taem need to aaae a cuose reuationsaip wita taeir seppuiers Seppuies mest
be saipped f reqeentuy, aaae saort uead times, arriae on scaedeue, and be of aigra
qeauity A contract migrat eaen reqeire a seppuier to deuiaer groods to a f aciuity as ofen
as seaerau times per day
A particeuaruy cuose f orm of seppuier partnersaips taroegra uean systems is tae JT JJ
system, auso cauued aendor-managred inaentories, tae seppuier is broegrat into tae
puant to be an actiae member of tae percaasingr ofce of tae cestomer
extremeuy cuose interaction wita seppuiers
Systems
Lean systems = Operations systems taat maximize tae aauee added by eaca of a company’s
actiaities by remoaingr waste and deuays f rom taem
Taey encompass tae company’s operations strategry, process desigrn, qeauity managrement,
constraint managrement, uayoet desigrn, seppuy caain desigrn, and tecanouogry and inaentory
managrement and can be esed by bota seraice and manef acteringr frms
Lean systems afect a frm’s internau uinkagres between its core and sepportingr processes and
its externau uinkagres wita its cestomers and seppuiers
Continuous Improvement Using a Lean Systems
Approach
Just-in-time (JIT) philosophy = Tae beuief taat waste can be euiminated by cetngr
ennecessary capacity or inaentory and remoaingr non-aauee-added actiaities in operations
Tae groaus of a uean system are taes to euiminate taese eigrat types of waste, prodece seraices
and prodects onuy as needed, and to contineoesuy improae tae aauee-added benefts of
operations
JIT system = A system taat orgranizes tae resoerces, inf ormation fows, and decision reues
taat enabue a frm to reauize tae benefts of JT principues
Strategic Characteristics of Lean Systems
Supply Chain Considerations in Lean Systems
Two sauient caaracteristics of uean systems taat are reuated to creatingr and managringr
materiau fows in a seppuy caain:
- Cuose Seppuier Ties
Becaese uean systems operate wita uow ueaeus of capacity suack or inaentory, frms
taat ese taem need to aaae a cuose reuationsaip wita taeir seppuiers Seppuies mest
be saipped f reqeentuy, aaae saort uead times, arriae on scaedeue, and be of aigra
qeauity A contract migrat eaen reqeire a seppuier to deuiaer groods to a f aciuity as ofen
as seaerau times per day
A particeuaruy cuose f orm of seppuier partnersaips taroegra uean systems is tae JT JJ
system, auso cauued aendor-managred inaentories, tae seppuier is broegrat into tae
puant to be an actiae member of tae percaasingr ofce of tae cestomer
extremeuy cuose interaction wita seppuiers
