Which of the following conditions is most likely to be a consequence of running lean production?
Which of the following conditions is most likely to be a consequence of running lean production?
Running lean production involves minimizing inventory and eliminating waste to improve efficiency. This contrasts sharply with maintaining higher levels of buffer stock or redundancy. As a result, organizations running lean are more vulnerable to disruptions in the supply chain because they have fewer resources to fall back on if there are issues such as component shortages or transportation delays. Therefore, the condition most likely to be a consequence of running lean production is increased risk from a disruption.
Increased risk from a disruption. Running lean production emphasizes eliminating waste and improving efficiency by minimizing inventory levels and streamlining processes. While this approach can lead to cost savings and increased efficiency, it may also increase the risk of disruptions. With lower inventory levels and less buffer stock, lean production systems are more vulnerable to supply chain disruptions such as component shortages, transportation delays, or unexpected demand fluctuations, which can have a more significant impact on production continuity.
Lean production systems are designed to eliminate waste and inefficiency,