Lean System Essay Example

Lean System Paper What trade-offs are involved in shifting from a traditional operations system to a lean system for: a. A manufacturing firm? A lean system is basically quality vs. quantity. Producing quality in the lean system eliminates waste. For instance, a lean system can reduce inventory, waiting time, excessive transportation, as well as defects in products and services. â€Å"The key considerations are the time and cost requirements for successful conversion, which can be substantial† (Stevenson, 2010, p. 719). b. A service firm There are trade-offs involved with shifting from a traditional operations system to a lean system in a service firm. I have been in the service industry for most of my life. In the beginning as a less experienced worker the operations were more of a traditional system. It was mostly about volume. We scheduled 4 haircut 3-4 haircuts an hour. The price was low. However, as my experience, training and knowledge increased the service shifted to a lean system. The trade-off for the client is a higher priced service, but also a more personalized one. Personally, I would rather not pay a low price for just a haircut. I would rather have something designed for me. Quality definitely beats quantity. Stevenson, W. J. (2010). Operating Management (10th ed. ), New York, NY: McGraw-Hill Irwin Determine the optimum preventive maintenance frequency for each of the pieces of equipment if: breakdown time is normally distributed: EquipmentAverage Time (days) between BreakdownsEquipmentPreventive Maintenance Cost Breakdown Cost A201 202A201$300. 00$2,300 B400303B400$200. 0$3,500 C850404C850$530. 00$4,800 Each price of equipment is broken down with the optimum preventative maintenance frequency in bold. Preventative maintenance cost/(Breakdown cost + Preventative maintenance cost) $300/($2,300 + $300) = 0. 115 0. 50 – 0. 115 = 0. 385 z = -1. 19 20 – 1. 19*2 = 17. 62 A201 = 18 days $200/($3,500 + $200) = 0. 054 0. 50 – 0. 054 = 0. 446 z = -1. 60 30 – 1. 60*3 = 25. 2 B400 = 25 days $530/$4,800 + $530 = 0. 099 0. 50 â €“ 0. 099 = 0. 401 z = -1. 28 40 – 1. 28*4 = 34. 88 C850 = 35 days We will write a custom essay sample on Lean System specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Lean System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Lean System specifically for you FOR ONLY $16.38 $13.9/page Hire Writer