Lean Manufacturing The following are some quotes provided by a number of managers at Hawkeye Machining Company regarding the company's planned move toward a lean manufacturing system: Director of Sales: Im afraid well miss some sales if we dont keep a large stock of items on hand just in case demand increases. It only makes sense to me to keep large inventories in order to ensure product availability for our customers. Director of Purchasing: I'm very concerned about moving to a lean system for materials. What would happen if one of our suppliers were unable to make a shipment? A supplier could fall behind in production or have a quality problem. Without some safety stock in our materials, our whole plant would shut down. Director of Manufacturing: If we go to lean manufacturing, I think our factory output will drop. We need in-process inventory in order to smooth out the inevitable problems that occur during manufacturing. For example, if a machine that is used to process a product breaks down, it will starve the next machine if I dont have in-process inventory between the two machines. If I have in-process inventory, then I can keep the next operation busy while I fix the broken machine. Thus, the in-process inventories give me a safety valve that I can use to keep things running when things go wrong. How would you respond to these managers? The Hawkeye Machining managers are displaying typical fears to a lean processing system. They need to learn to accept accounting in the 21st century. The Hawkeye Machining managers are displaying typical fears to a lean processing system. Lean manufacturing removes the safety provided by materials, in-process, and finished goods inventory balances. The Hawkeye Machining managers are displaying typical fears to a lean processing system. Their concerns are unfounded. The Hawkeye Machining managers are displaying typical fears to a lean processing system. JIT systems are used worldwide. The Hawkeye Machining managers are displaying typical fears to a lean processing system. Maintaining large inventories will continue even in a JIT system. Select the correct choice from the above choices. Answer the questions below relating to the Hawkeye Machining Company. 1. The in-process inventories can be reduced significantly if the underlying manufacturing processes are made reliable. 2. The solution is to increase inventory, not improve the reliability of the machines. 3. The finished goods inventory can be reduced if the manufacturing system can be made responsive to customer demands. 4. In the case of materials inventories, a lean manufacturing philosophy requires all suppliers to provide high-quality materials on a daily basis in just the right quantities needed for a day's production.