C 4. The initiation banquet for new members of your business club is being held at an excellent restaurant. You are sitting next to two college students who are majoring in marketing. In discussing the accounting course they are taking, they mention that they are having difficulty understanding the lean philosophy. They have read that the elements of a company’s operating system support the concepts of simplicity, continuous improvement, waste reduction, timeliness, and efficiency. They realize that to understand lean thinking in a complex manufacturing environment, they must first understand lean in a simpler context. They ask you to explain the philosophy and provide an example.

Briefly explain the lean philosophy. Apply the elements of a JIT operating system to the restaurant where the banquet is being held. Do you believe the lean philosophy applies in all restaurant operations? Explain your answer.

Activities, Cost Drivers, and JIT