Question 202 - CSCP discussion

Employing lean principles is the most appropriate action when implementing a strategy to create customer-affordable value because:

Waste Reduction: Lean principles focus on identifying and eliminating waste in all forms (e.g., overproduction, waiting, transport, extra processing, inventory, motion, defects), which reduces costs and increases efficiency.

Cost Efficiency: By streamlining processes and improving efficiency, lean principles help lower production and operational costs, which can translate into more affordable products for customers.

Value Focus: Lean emphasizes delivering value from the customer's perspective. This involves understanding what customers value and ensuring that all activities contribute to creating that value.

Continuous Improvement: Lean principles encourage a culture of continuous improvement (Kaizen), where employees constantly seek ways to enhance processes and reduce costs, further contributing to customer affordability.

Using a more rapid transportation mode (Option A) can increase costs. Increasing safety stock (Option B) adds to inventory carrying costs. Extending product warranty (Option C) may provide customer value but does not directly address process efficiency and cost reduction.

'Lean Thinking: Banish Waste and Create Wealth in Your Corporation' by James P. Womack and Daniel T. Jones.

'The Lean Six Sigma Pocket Toolbook' by Michael L. George, John Maxey, David Rowlands, and Mark Price.