Recent Developments in Lean Thinking Have Combined These Principles with Six

question 25

Essay

Recent developments in Lean thinking have combined these principles with Six Sigma and with supply chain management. Pick either one of these programs and describe its elements. Then provide an example from current business news of an operation or supply chain that has embraced these principles.

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Definitions:

Simulation Analysis

is a method used in risk management to model possible outcomes of a decision by manipulating variables within mathematical or computer simulations.

NPV Estimates

Projections or calculations of the Net Present Value for different investments or projects to aid in decision-making.

Simulation Analysis

A technique used to predict the outcome of a project or investment by running multiple simulations with various sets of assumptions.

Capital Rationing

The process of restricting the amount of capital available for investment in new projects by a company due to budget constraints.