Just In Time
One of the first and the most important principles of lean production is Just In Time. The basic rule is „To produce what customer needs“ ( Taiichi Ohno ). It means a change of production system from such called "PUSH" to "PULL".
For example imagine McDonald. In case of the PUSH system of production the restaurant would just bake hamburgers without any regard to demand for them. In this production method there instantly arise several wastes: excessive work, extra space for storage of inventory and overproduction of not sold burgers thrown in the trash. The same situation occurs in other companies that also produce goods that are not in demand. CASH FLOW is the core precondition of a successful company; products accumulated in buffer stocks make zero cash flow.
Companies that use LEAN THINKING control their production by system PULL, which means that the customer is the one who gives a signal what to produce, no matter if it is a hamburger, a gearbox or anything else....:)
Important concepts related to lean production are:
- MILK - RUN
- CONTINUOUS FLOW PRODUCTION