When Implementing a Lean System

question 50

Multiple Choice

When implementing a lean system:

• A) managers can mitigate some of the effects of worker stress by judiciously using safety stocks and emphasizing material flows rather than worker pace.
• B) management should base the reward system on production volume.
• C) the plant layout is the only environmental characteristic that need not be analyzed.
• D) it is critical to develop a master production schedule that changes frequently as forecasts change.

---

Definitions:

Earnings

The amount of money that an individual or business receives in exchange for providing a good or service or through investing capital.

Term Life Insurance

A type of insurance that provides protection for the policyholder; term insurance covers the policyholder for a specified period of time, usually 5, 10, or 20 years; after that time, the policy is no longer in effect, unless it is renewed for another term.

Premium

The amount paid for an insurance policy.

Face Value

The nominal or stated value of a security or financial instrument, such as a bond, note, or coin.