Value Streams Are Useful in Decision-Making Because

question 91

Multiple Choice

Value streams are useful in decision-making because:

• A) They identify all value-added products and services.
• B) They help to highlight improved efficiency in the plant.
• C) Special orders can be evaluated within the context of the value stream.
• D) Irrelevant costs are identified.
• E) Lean thinking produces costlier products.

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Definitions:

Service Department Expenses

Costs associated with the departments that do not directly generate revenue but support other departments that do.

Indirect Factory Expenses

Costs associated with manufacturing that are not directly tied to the product, such as maintenance or factory utilities.

Square Footage

A measurement of area expressed in square feet, commonly used to specify the size of buildings or rooms.

Rent Expenses

Regular payments made for the use of property or equipment owned by another entity.