Skip to content

CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT

A Coimbatore pump manufacturer begins lean implementation by drawing a value stream map of its order-to-delivery process. The main purpose of this first step is to:

A value stream map is drawn to identify which steps add value for the customer and which are waste, such as waiting, excess inventory or rework. This lets management choose improvement targets. It is not used for pricing or depreciation, and larger batches would go against lean thinking.

  1. AFix the selling price of each pump model
  2. BIdentify value-adding steps and expose waste so improvement targets can be chosenCorrect
  3. CCalculate the depreciation on machinery for each department
  4. DIncrease batch sizes so set-ups are done less often

Explanation

Value stream mapping shows every step in the flow, separating value-adding from non-value-adding activity, so waste can be targeted. It is not a pricing or depreciation tool. Larger batches would add inventory and waiting, contrary to lean.

Did you get it right without looking?

One question tells you little. A timed set on Lean Operations and JIT shows your real accuracy, how long you take and where you lose marks.

Practise Lean Operations and JITFree diagnostic mock

More Lean Operations and JIT questions