Managers frequently use a process management method known as lean thinking, or what is called Lean Production in the manufacturing sector. Lean Production is amanagement approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders.It is often called just-in-time production (or JIT) because products are only manufactured in response to customer orders and they are completed just-intime to be shipped to customers. Lean thinking differs from traditional manufacturing methods that organize work departmentally and that encourage departments to maximize their output even if it exceeds customer demand and bloats inventories. Because lean thinking only allows production in response to customer orders, the number of units produced tends to equal the number of units sold, thereby resulting in minimal inventory. The lean approach also results in fewer defects, less wasted effort, and quicker customer response times than traditional production methods. In the this senseYou may address the following issues: Describe why companies are using just-in-time (JIT) purchasing and Explain the basic characteristics of Just-in-Time systeistinguish materials requirements planning (MRP) systems from just-in-time (JIT) systems for manufacturing.entify the features and benefits of a just-in-time production system.escribe different ways backflush costing can simplify traditional inventory-costing systems.Understand the principles of lean accounting.Apply your understanding of the topic in giving recommendation to management in regards to the following case (CMA, adapted):
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