Download Lean Manufacturing That Works: Powerful Tools for by Bill Carreira PDF

By Bill Carreira

This booklet offers the belief of Lean production in a lucid and neat approach; reader may be caught to it to finish, specifically as a result of its such a lot of everyday-kind of actual tales.

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By Bill Carreira

This booklet offers the belief of Lean production in a lucid and neat approach; reader may be caught to it to finish, specifically as a result of its such a lot of everyday-kind of actual tales.

Show description

Read Online or Download Lean Manufacturing That Works: Powerful Tools for Dramatically Reducing Waste and Maximizing Profits PDF

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Additional info for Lean Manufacturing That Works: Powerful Tools for Dramatically Reducing Waste and Maximizing Profits

Example text

Kind of a big Visa account. Payment comes from the line of credit, and when you get checks from your customers to pay for product received, this cash goes into your line of credit to pay down what you have borrowed. Your company pays interest on this money that is borrowed. So the cost of money is the interest you pay on your line of credit. This interest rate is tied to the prime rate and floats around depending on where the prime rate is. With interest rates as low as they are today, the cost of money is probably in the 6 to 7 percent range, maybe lower.

Jim: OK, Bill, I’ve got a question. ) Me: Your name, sir? Jim: My name is Jim Torney. Me: Hi, Jim; what’s your question? Jim: It doesn’t make sense to me that you would borrow money to buy materials. Why doesn’t the company just pay cash for it and avoid the interest? Me: OK, you guys are getting tough now. I think the simple answer is that it doesn’t have the cash available. There is always a balancing act going on between when you spend money, and how much you spend, and when you get money to pay for your expenses.

Me: You might want to consider offering John a purchasing position; he’s really good at managing inventory at high turns. ) Me: OK, if we turn the measurement inside out, when we say we have 4 turns, we’re also saying that we have three months’ worth of inventory on hand. If we say the average month has twenty days, that translates to sixty days of inventory on hand. You don’t have to buy anything for the next sixty days of production! Julie: I wish that were true, but the inventory we have on hand is not the right mix for the next sixty days of production.

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