Value-Stream Mapping

question 247

Multiple Choice

Value-stream mapping:

• A) is a variation of time-function mapping.
• B) examines the supply chain to determine where value is added.
• C) extends time function mapping back to the supplier.
• D) starts with the customer and works backwards.
• E) All of these are true.

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Definitions:

Cash Payback Period

The period of time required for the return on an investment to "pay back" the sum of the original investment.

Amortization Period

The length of time over which an intangible asset is depreciated or an amount of money is amortized, typically reflecting the asset's useful life.

Net Cash Flows

is the total amount of money being transferred into and out of a business, indicating its financial health.

Initial Cost

The purchase price of a fixed asset plus all costs to obtain and ready it for use.