Question

Question: What term is used to mean manufacturing designed to achieve high customer satisfaction with minimum levels of inventory investment?

Short answer

Answer

Lean manufacturing

Step-by-step solution

Lean manufacturing

Lean manufacturingis the process of manufacturing in which waste is minimized, and productivity is maximized. In the production process, firms keep some inventory to meet unexpected circumstances. Still, it is impossible to balance the level of finished inventory with the level of service to the consumers.

Accumulating more inventory increases cost, and a trade-off is needed between the inventory level and consumer service. The trade-off is made better by gaining knowledge about consumer behavior and preferences, and lean manufacturing is one way of achieving maximum consumer service with minimum inventory investment.

Purpose of lean manufacturing

The overarching goal of lean manufacturing is to maximize the value of goods delivered to customers to address their issues. By lowering the expenses, one may increase the competitive edge in the industry. One may add value to your manufacturing process by identifying tasks that do not directly contribute to producing high-quality goods. One may reduce redundant operations and accomplish the main goal of lean production by analyzing every stage of their manufacturing line.

1. Waste Reduction
2. Remove Errors
3. Exactly on time