Lean Production Planning at Motorola

Lean Production Planning

Lean production planning is a concept developed in Japan, which is based on finishing goods when they are needed (Chase, Jacobs, & Aquilano, 2006). For Motorola to implement this type of plan, an entire new strategy will need to be developed for handling inventory. Currently, each Motorola plant handles inventory independently. Now Motorola must centralize inventory and ordering systems. The two systems need to be centralized because lean production is based on the theory that goods are produced when needed, thus eliminating waste (Chase, Jacobs, & Aquiliano, 2006).

Current Situation

In China, the suppliers' on-time delivery rate is only 93%. This is an unacceptable rate in a lean production planning environment. To increase...