Lean Management System LMS:2012

Product or Service Realization  ◾  115

b. When does the organization (or its customers) feel a need to place

orders before they are really needed, for fear that the supplier will

not deliver in time?

c. Which suppliers are afraid that customers will place orders “just in

case” and then cancel if the parts or services are not needed?

d. What techniques does the organization use to avoid suboptimization,

in which each supply chain participant tries to maximize its own

profit at the expense of the others?

e. How does the organization avoid dysfunctional behavior because

of internal transfer pricing conflicts between internal customers and

suppliers? This is the internal analogue of suboptimization.

2. How does the organization communica