When managing the operation in a skilled industry, the business leaders must understand two main goals in creating a successful business - to increase profit and minimize or maintain the costs involved. Targeting these two goals has been a mystery for the entrepreneurs, especially with the increasing level of competition. The lean operation offers new perspectives on operation and it will achieve a balanced, smooth flow of operations. With lean operation and Just-in-time philosophy and its foundation, we shall understand why this operation management concept is so beneficial for any company. The philosophy of JIT and Lean management focuses on a flexible system that uses minimal resources and produces high-quality goods or services with a highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed. There are four aspects that are more engaged in the cost engagement. First is the elimination of all activities that do not add value in the product or in the service because it focuses more broadly in reduction of the cost. Second is the commitment given to the high level of quality because of the philosophy in doing the work for the first with no time allowed to re-do or repeat the work. Third is the commitment for continuous improvement in terms of the efficiency of an activity. The last is the emphasis on simplification and increased visibility of the activities that do not add any value. When it comes to the foundation of Lean management and JIT we must take consideration of the ultimate goal for the lean system, which is a balanced system, to achieve smooth, rapid flow of materials and/ or work. There are three supporting goals that contribute to reaching the ultimate goal. Frist, eliminate disruptions that have a negative influence on the system by upsetting the smooth flow of products through the system. Second, make the system flexible to handle a mix of products, often on...
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