Companies using lean systems generally have:

Question

BlackTom AI · Accepted Answer

When considering what characterizes companies that adopt lean systems, it helps to connect choices to the core lean principles such as waste reduction, pull scheduling, and minimizing lead times.
Option 1: 'suppliers who are low-cost producers.' While cost is important, lean emphasizes reliability and timeliness over simply choosing the lowest unit cost. A supplier with very low cost but long or unpredictable lead times can create muda (waste) through excess inventory or production stoppages, so this option isn't the hallmark lean benefit.
Option 2: 'suppliers that are willing to accept short-term contracts.' Lean relationships tend to favor long-term supplier partnerships to foster stability, shared improvements, and frequent, reliable communication. Short-term contracts can undermine those collaborative improvements and just-in-time flow, making this option less aligned with lean practice.
Option 3: 'suppliers that are located nearby to decrease delivery lead time.' This directly supports lean goals by shortening transit times, enabling smaller batch sizes, faster feedback, and more reliable pull systems. Proximity reduces wait times and variability, which is central to lean manufacturing.
Option 4: 'many suppliers to ensure that material shortages never occur.' While having multiple suppliers can mitigate risk, lean systems typically seek fewer, trusted suppliers to enhance coordination, reduce setup and ordering costs, and maintain stable flow. An excessive supplier base can complicate synchronization and increase variation, making this option inconsistent with lean ideals.
In summary, the lean mindset prioritizes shortening lead times and creating dependable, smooth flow through closer supplier relationships, rather than emphasizing sole cost, fleeting contracts, or an excessive supplier count.

Companies using lean systems generally have: Single choice

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