Chapter C, Problem 1E

Identify each of the following production processes as lean (L) or traditional (T).

1. The process produces standard goods, with no option for customization. Production begins with
the quarterly sales forecast, and finished goods are stored until sold.

2. The process uses push production. Large batch sizes are used, and inspection occurs only when
goods are completed.

3. The process uses value streams to meet the demand for customized products. The value streams
depend on quality materials, and employees are empowered to “stop the line” if defects are detected.

4. The production process begins when a customer makes an order. Raw materials are delivered
just-in-time for the process to begin. Little inventory and raw materials are held.

EXERCISES

Exercise C-1
Lean business model