Question 113 - CPIM-Part-2 discussion

Adopting a lean approach to manage supply chain throughput rather than a more traditional approach means that more capacity may be required. Throughput is the rate at which a system produces or processes its output. A lean approach is a philosophy that aims to eliminate waste and improve efficiency by focusing on customer value, continuous improvement, and pull systems. A traditional approach is a philosophy that relies on forecasting, push systems, and large batch sizes. A lean approach may require more capacity because it reduces inventory levels, buffers, and safety stocks, which may expose the system to more variability and uncertainty. More capacity may be needed to cope with fluctuations in demand or supply, and to maintain high service levels. A lean approach does not necessarily require less training, as it involves empowering employees, cross-training them, and involving them in problem-solving and improvement activities. A lean approach does not necessarily require more inventory, as it aims to minimize inventory and its associated costs. A lean approach does not necessarily result in longer cycle times, as it strives to reduce lead times, setup times, and waiting times.Reference: CPIM Exam Content Manual Version 7.0, Domain 4: Plan and Manage Supply, Section 4.2: Supply Planning Methods, p. 26; Lean Manufacturing; Throughput.