Activity drivers of the JIT system become metrics in the Balanced scorecard. Big picture analysis can be provided by the Balanced scorecard which takes into account the activity linkages, the time linkages and the value chain phases.
Share through Email Like most major change initiatives, going lean rarely looks good from the start. The operating efficiencies come quickly, yet sales and profits — for a while — get worse.
Product lead times to customers and on-time delivery performance were up sharply. Over the next six months, operational performance continued to show impressive gains, and the vice president of operations was pleased.
Meanwhile, customer service was making significant strides as well, and with greater efficiencies the company was able to reduce the number of direct labor employees involved in production.
However, the CFO saw a radically different picture. During the same initial months, she saw no financial improvement at all: The CFO was baffled: The sales forecasts had looked encouraging, and the operations people had talked about significant savings. Previously, the company had deliberately kept inventory levels high to ensure that customers would be well served.
Now seemed like a good time to cut inventory — something the CFO hoped would lead to financial gains. With less inventory, she looked forward to having more cash on hand. In addition, she anticipated that quality improvements would pay a nice dividend in terms of lower materials costs.
Since then, thousands of managers have been drawn to the principles of lean management. Managers have applied them to consumer products including automobiles and electronicscommercial products including aircraft landing gear, electrical components and batteries and a wide range of service environments including hospitals, 2 insurance companies, 3 government offices, 4 retail stores 5 and call centers 6.
In contrast to traditional methods based on mass production and economies of scale, lean management is built on responsiveness and economies of scope.
For many companies, the initial decision to go lean is a no-brainer. In a relatively short period of time, companies have found that they can achieve faster cycle times, reduced defect rates and sharp gains in on-time deliveries.
In addition, for companies relying on inventory as a buffer against uncertain supply, there is a marked reduction in inventory levels required across the supply chain.
Logically, these changes should result in better financial performance, especially because companies achieve simultaneous declines in manufacturing and service costs.
But the transition takes time, and it is full of obstacles. When the numbers fall short of internal and external expectations, managers often try to modify the lean initiatives — or abandon them altogether.
Orest Fiume, former vice president of finance and administration at Wiremold Co. To help managers overcome the financial hurdles on the path to lean, we have developed new tools for anticipating the deterioration in financial performance that invariably occurs as a mass producer goes lean and for understanding the real performance improvements that take place during this period.
This system is designed to help companies resist the pressure to show financial results that are consistent with historic levels in the old production environment.
Some of the most significant developments involve operational improvements that affect customers. Customers buy less because they can place their orders closer to the time they actually need the products and hence can reduce their safety stocksresulting in revenue reductions.
The result is a temporary decline in profits that continues until customer inventories are fully drawn down, at which time sales and profits return to normal levels. The External Effects of Going Lean: Customers Buy Less for a While When a mass producer converts to lean, its performance along two key dimensions improves dramatically from the perspective of the customer.
First, the lead times between placing an order and getting it delivered drop dramatically. Second, the percentage of on-time deliveries increases dramatically.
Together, these improvements allow customers to reduce their safety stocks. Consider what happened at Caspian during the first three years of lean transformation. The company eliminated most of the queues in the production processes. This led to a reduction in lead time from 12 weeks to around one week.
At the same time, because of improved reliability and quality, the on-time delivery percentage to customers went from the low 70s to the high 90s.Methods. We examined the association between chronotype and incident depression (defined as self-reported physician/clinician-diagnosed depression or antidepressant medication use) in 32, female participants of the Nurses’ Health Study II cohort who self-reported their chronotype (early, intermediate or late) and were free of depression at baseline in (average age: 55 yrs).
Summary of Recommendations. Introduction. Methods. Recommendations for Specific Treatment Questions Corcoran JP, Maldonado F, Feller-Kopman D, Janssen J, Maskell N. Interventions for the management of malignant pleural effusions: a network meta-analysis. Cochrane Database Syst Rev ;(5):CD and improve work efficiency in nonproduction areas such as accounting (Maskell and Baggaley, ), engineering (Middleton, Flaxel, and Cookson, ; Haque, ; Freire and Alarcón, ) and service (Bowen and Youngdahl.
Auto Suggestions are available once you type at least 3 letters. Use up arrow (for mozilla firefox browser alt+up arrow) and down arrow (for mozilla firefox browser alt+down arrow) to review and enter to srmvision.com: $ Lean Management, Supply Chain Management and Sustainability: A Literature Reviewq Pedro José Martínez-Jurado1, José Moyano-Fuentes* University of Jaén, Departament of Business Organization, Marketing and Sociology, Escuela Politécnica Superior de Linares, C/Alfonso el Sabio, 28, E Aboul-Enein, BH; () The role of the contemporary health educator: Revisiting the profession.
International Journal of Public Health Papers, 1 (1). pp.