Elimination of Waste, Perfect Quality, Reduced Cycle Time, and Employee

question 27

Multiple Choice

Elimination of waste, perfect quality, reduced cycle time, and employee involvement are all components of

• A) Lean manufacturing.
• B) Just-in-time operations.
• C) Time-based competition.
• D) Logistics.
• E) Simultaneous engineering.

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Definitions:

Machine-Hours

A measure of the total run time that a machine is utilized for production over a specific period, often used as a basis for allocating overhead costs.

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the manufacturing process or production of goods.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins by dividing estimated overhead costs by an estimated allocation base.

Machine-Hours

A measurement of the amount of time machines are operated in the production process, used as an allocation base for applying manufacturing overhead.