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Manufacturing and service organization share many commonalities such as Procurement decision, supply chain management coordination, presence of Bullwhip effect, potential of errors in delivery process, Causes of bullwhip effect .
Wiki User
∙ 9y ago
Wiki User
∙ 14y agoThere are little/no similarity at all.
- Mass Production (MP) produces in lots (batches) as large in size as possible - Lean Production (LP) produces in much smaller lots, or more frequent small lots, just as the market wants.
- MP is generally geared to refill (and keep well stocked) the Finished Product warehouse - LP is geared to despatch the output product straight to clients
- In MP, Manufacturing Cycle Time and Selling Cycle Time are generally two well distinct issues - in LP the ideal target is to make them coincide. LP motto: "produce today what your customers ordered yesterday and despatch it today or tomorrow at the latest!". LP is generally performed at a speed/pace equivalent to the TAKT TIME.
- In MP Production Planning is generally by means of MRP/ERP systems, complex and time consuming (often also inaccurate) - in LP Production is planned by the customer and pulled (triggered) by the market.
- Therefore, generally, MP is a PUSH type of production - LP is a PULL type of production
- MP is generally accomplished using bulky, General Purpose, expensive and rather difficult to operate Machinery/Technology - LP is generally accomplished using compact, dedicated, quality-geared, easy to move, easy to operate, easy to set up, less expensive equipment.
- MP is generally performed in a Vertical (Job-Shop) type of layout - LP is generally performed in a Horizontal (Flow-Shop) type of layout
- MP generally is associated with considerable surrounding waste (moving - parking - stockpiling - checking - controlling - idling - etc.) - LP targets at a waste-free type of operations
- MP represented the philosophy of the 1st Industrial Revolution - LP represents the philosophy of the 2nd Industrial Revolution
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