From the course: Lean Foundations
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Demand-driven materials
- Albert Einstein once said that, "Everything should be made as simple as possible, "but not simpler." That's an important distinction because a system that is too simple can lead to errors. When it comes to managing materials, some people believe that a lean approach is just that, too simple to be effective. But the key to successfully managing materials is flow. And the key to flow is having the right materials in the right place at the right time. When I speak of materials, I mean the raw materials, components and sub-assemblies that make up your final product, the one you ship to your customer. Now, most companies believe you can manage the flow of materials in one of two ways. First, you can use a structured computer-driven material requirements planning system or MRP to determine the flow of materials based on anticipated demand, your forecast of customer demand. Or secondly, you can use a lean system, which…
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