Long Production Runs, Poor Material Flows, and Processes That Are

question 39

True/False

Long production runs, poor material flows, and processes that are not tightly linked to one another can cause over 90% of a product's lead time to be spent waiting.

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Definitions:

Controlled Costs

Expenses that can be managed or influenced by decisions of business managers, allowing organizations to adjust for efficiency and cost savings.

Material Price Variances

The difference between the actual cost of materials and the standard or expected cost, multiplied by the quantity purchased.

Time Materials

A pricing model where a customer pays based on the actual time spent on a project and the cost of materials used.

Recognition Of Variances

The process of identifying and documenting the differences between actual and budgeted costs.