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Maximum effectiveness and efficiency are reached when the lean philosophy is used by both manufacturers and their suppliers.
Indirect Materials
Materials used in the production process that cannot be directly traced to the final product, such as lubricants and cleaning supplies, and are classified as overhead costs.
Manufacturing Overhead
Includes all manufacturing costs except direct materials and direct labor, covering expenses like utilities, depreciation, and equipment maintenance in a production facility.
Manufacturing Overhead
All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.
Work in Process
Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.
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