July 2017
Intermediate to advanced
249 pages
6h 17m
English
Content preview from Lean Production Simplified, 3rd Edition
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Lean Production System ◾ 21
Benefits go directly to the bottom line.
◾ Old equation:
Cost + Profit = Price
◾ New equation:
Price (fixed) − Cost = Profit
◾ Thus, the key to profitability:
Cost reduction
Systems and Systems Thinking
A system is an integrated series of parts with a clearly defined goal. For
example, a car is a system whose goal is to provide transportation. Systems
have the following characteristics:
4
◾ Each part of a system has a definable purpose. For example, the pur-
pose of a car engine is to provide motive force.
◾ The parts of the system are interdependent. A car engine depends on
the fuel subsystem to provide chemical energy an ...
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