Question

1. What does the word “kaizen” mean?

2. In a lean system, work-in-process inventory is:

3. Benefits of small lot sizes include:

Answer 1

Kaizan is a concept which refers to the continuous improvements of all functions, resources and processes in the organsation from the CEO to the worker working in the assembly line. It simply means improvement and can be applied to various business segments like logistics, purchasing, organisational boundaries etc.

In a lean system, work in progress inventory is a direct result or outcome of waiting and overproduction in the supply chain logistics. Overproduction would directly lead to work in progress inventory as the demand is not as high as the goods produced.

The size of lots have a direct impact on the productivity and the efficiency of the organisation. Small lots are known for increasing the smooth productivity and reducing the variability in the system. It simplifies the scheduling, increases the quality, decrease the amount of inventory and tries to encourage the improvement at large.