Q1. Why is a visual management approach such an integral part of Autoliv’s lean system? It allows Autoliv to keep track of work time needed to complete a customer’s order. A “rail” is used for the management of the heijunka cards in each cell. For instance, if the card is green, it means the work on a product that fulfills the customer’s order can be completed during normal working hours. If the card is yellow, overtime is needed to complete the order. But if the card is red, it means weekend overtime is needed. Also, the visual communication allows for the determination of when a group of cells is backed-up and not performing properly. If a cell is not performing at the required pace to meet customer demand, the cards will stack up on the rail and provide a very visual cue that the cell is not meeting expectations. And, this will provide an opportunity for the cell team members and management to implement immediate countermeasures to prevent required overtime if the situation is not remedied. Q2. Describe the JIT considerations presented in the chapter as they relate to Autoliv’s manufacturing environment? The following are types of Just in Time (JIT) activities according to the Tokyo Production System (TPS): Eliminate waste or muda: by cutting excess capacity or inventory and removing non-value-added activities. Kaizen: the understanding that excess capacity or inventory hides underlying problems with the processors that produce a service or a product. Jidoka: automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur. Poka-yoke: mistake-proofing methods aimed at designing fail-safe systems that minimize human error. Takt time: cycle time needed to match the rate of production to the rate of sales or consumption. Heijunka: the leveling of production load by both volume and product mix. Q3. How does Southwest Airlines know they are achieving their goals? Company executives know when they have achieved their goals when internal and external metrics are reached. For example, the Department of Transportation (DOT) tracks on-time departures, customer complains, and mishandles baggage for all airlines. Southwest Airline can collect all the relating information and The Company sets targets for achievement on these dimensions and lets employees know on a monthly basis how the company is doing against those metrics compared to the rest of the industry. Regular communication with all employees is delivered via meeting, posters, and newsletters. Rewards such as prizes and profit sharing are given for successful achievement. Q4. What are the important long-term issues relevant for managing capacity, revenue, and customer satisfaction for SWA? Rolling King and Herb Kelleher started Southwest Airlines in 1971 with this idea: if they could take airline passengers where they want to go, on time, at the lowest possible price, and a good time while doing it, people would love to fly their airplane. These issues are still important for managing capacity, revenue, and customer satisfaction for SWA. Moreover, improving the utilization of its fleet by turning around an aircraft at the gate faster than its competitors is another major issue for SWA because even a single minute reduction in aircraft turnaround time system wide means additional seat-miles being added to the available capacity of Southwest Airlines.