Process Design That Supports Lean Does Not Include

question 121

Multiple Choice

Process design that supports lean does not include

• A)production flexibility.
• B)duplicate facilities.
• C)setup time reduction.
• D)minimal inventory storage.
• E)small lot sizes.

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Definitions:

Cost Object

A cost object is any item for which costs are separately measured and tracked, such as products, projects, or departments.

Denominator Volume

The activity level used to allocate fixed costs to products or services, affecting the calculation of unit costs.

Budgeted Capacity

The amount of production or activity level planned for a future period, based on budget allocations.

Practical Capacity

The maximum amount of work or output that can be realistically achieved in a specific period under normal operating conditions.