FUND.ACCT.PRIN.-CONNECT ACCESS
FUND.ACCT.PRIN.-CONNECT ACCESS
25th Edition
ISBN: 9781260780185
Author: Wild
Publisher: MCG
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Chapter D, Problem 1E
To determine

Traditional Production Process:

In this production process the company first estimates the sales forecast for a period based on which it estimates the raw material inventory required , then raw material goes to different process before becoming the final product . The inspection of product takes place at the end of last process. The finished products are sent to finished goods warehouse and on customer requirement are delivered to customer. This is also called push production and characteristics are standard products of large batch sizes

Lean Production Process:

In this production process first the customer gives the requirement and basis on which raw material is ordered just in time and all production process are at one location resulting in faster output. The inspection is done by each employee for his process and the goods are sent to next process with zero defect. This is also called pull production and the characteristics are customized products with zero defects with small batch sizes and delivered directly from factory to customer

whether the each of the production process is related to lean or traditional

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