Browning, Tyson R. and Ralph D. Heath
(2009). “Reconceptualizing the Effects of Lean on Production Costs with
Evidence from the F-22 Program,” Journal
of operation Management, 27 (1): 23-44
According to Browning and Heath (2008),
lean production can reduce waste during the manufacturing processes. By
minimizing the amount of waste, manufacturers can decrease their manufacturing
cost. However, lean production is not always saving money for manufacturers.
When the waste was reduced to a certain level, such little waste will actually
increase the production cost. Browning and Heath investigate the discrepancy
above with an analysis of how lean production relates to the added cost. They
find out that lean production method creates uncertainty for the manufacturers.
In order to be lean, manufacturers are required to modify its internal and
external process to minimize its waste as much as possible. Based on the nature
of different processes, modifying processes can be challenging. Those
challenges contribute to the uncertainty that lean production method create.
Depending on how lean the production-processes are, the uncertainty will vary
from low to high. One feasible method to handle those uncertainties is
utilizing the agile production method that believes that manufactures should
have a certain level of production-resource as inventory to deal with uncertainty.
Through the help of that Method a lot can be learn because finally it goes ahead in the right direction which is fine enough, agile business intelligence lets us go ahead in the way which is pretty good in terms of learning and moving forward.
ReplyDelete