1. Lean Production Methods
Tesu Company
Lean Production Methods

2. Content Introduction Issues & Opportunities Quantitative Analysis
Qualitative Analysis
Recommendations & Implementation
Questions & Answers

3. Introduction A welding equipment manufacturing company
87% of its sales depend on EMT

4. Issues & Opportunities
Key Issues:
Cash flow shortage
Production difficulties
Opportunities:
Lean production methods

5. Quantitative Analysis
Profit or loss?
Production vs. Sales

6. Profit or loss? Revenue 4,892,000 Material Cost 4,065,700
Labour and Overhead operating costs
883,980
Loss
(57,680)

7. Production vs. Sales Planned Units for 9 months
Planned Units for 9 months
Actual Units for 3 months
Total 2013
Normal Average Units per year
Overproduction/Underproduction EW
356 29
385
250
135 LF
392 10
402
300
102 CR
1820
110
1930
2000
-70 AC
390
204
594
600 -6

8. Qualitative Analysis
Advantages analysis
Disadvantages analysis

9. Advantages analysis Decrease work in progress
Decrease time for production
Increase production efficiency and capacity
Increase return on assets

10. Disadvantages analysis
Cash flow shortage
Backlog of orders
Lack of profitability
Global competition
Requires at least one year for training

11. Recommendations & Implementation
Decrease accounts receivable
Solve timely shipping problems
Seek financial support from EMT
Revise the production plan

12. Questions & Answers

13. Thank you!