How’s your inventory being managed? In this video, Steven discusses three key measurements of inventory. Learn how Lean practices can be applied to increase inventory turns and, thus, reduce inventory costs.
- Taiichi Ono, the father of the Toyota production system,…had the right view on cost for his company.…He once said that costs do not exist to be calculated.…Costs exist to be reduced.…This is truer today than ever, and it is more true…about inventory than ever before.…Inventory is any asset you hold for a future sale.…It can be raw materials, work in process, sub-assemblies,…or finished goods.…And in today's world of global supply chains,…you must also consider inventory that is being held…throughout your entire system of suppliers and distributors.…
Holding large levels of inventory is no longer acceptable.…It is simply too costly.…Today you don't hold inventory to meet customer orders.…You make products as late as possible, but still have them…available when your customer wants them.…Lean inventory management means you meet demand…but at the lowest cost possible.…Lean managers make two important decisions about inventory.…First, you decide when to produce.…Today's managers want to produce just in time.…
And second, you decide how much to produce.…
Lean concepts have been successfully applied to every aspect of doing business. In this course, learn the principles of lean and how they are used in processes, production, and services. Instructor Steven Brown also explains how lean thinking impacts the organization, from the overall business culture to day-to-day work activities.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Cite the focus of a lean strategy.
- Explain what a “rule of complexity” is.
- Name the three key measures of inventory.
- List the 5S tools.
- Define a lean transportation system.
- Describe the characteristics of a lean purchasing organization.
- Identify the characteristics of a lean company.