Question

1. Which of the following is not correct:
   1. Overproduction, Queues, Transportation, Inventory, Motion, Overprocessing, Defective product are seven categories of wastes.
   2. The three pillars of Toyota Production System (TPS) are continuous improvement, respect for people, and standard work practices.
   3. Throughput and reduced inventory are the focuses of Just-in-time (JIT) problem solving approach.
   4. Lean inventory refers to more than sufficient inventory with some additional safety stock to ensure that a system is running perfectly.

Answer 1

Out of all four statements, first three statements are correct that is options a,b,c are correct whereas

option "d" is not correct

Explanation:

If an organization can remove uncertainties from supply chain there is no need to hold Safety stock. uncertainties are mainly contributed due to fluctuations in demand and delay in supplies. With the proper demand forecasting with improving forecast accuracy and reducing suppliers lead time by improving effective measures, demand can be fulfilled with cycle stock levels.With the implementation of pull system, production or fulfillment occurs after getting actual demand and no need to keep inventory in anticipation of demand from customer.Reducing wastes from system helps to achieve "Lean Inventory" and does not necessarily meant as "sufficient inventory with some additional safety stock".

So, it is not true that Lean inventory refers to to more than sufficient inventory with some additional safety stock to ensure that a system is running perfectly. Without safety stock, system can run perfectly.

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