Consider That You Are a fiNance Manager, and One of Your

question 297

Essay

Consider that you are a finance manager, and one of your junior staff wanted an explanation of the
term sustainable growth rate (SGR). Provide a definition that conveys what the term means from a
finance perspective.

---

Definitions:

Non-Value-Added Costs

Costs incurred during the production or delivery of a product or service that do not increase its market value, often a target for reduction or elimination in lean manufacturing.

Idle Time

The time period in which resources, such as machines or employees, are available but not in use or production.

Production Lead Time

The total time required to manufacture an item, including the wait, preparation, and processing times, from the beginning of production to the product’s completion.

Idle Time

The time period during which production resources are not being used effectively due to factors like machine breakdowns, inefficient scheduling, or lack of orders.