The Four Building Blocks of Lean Operations Are: Product Design

question 45

True/False

The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control.

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Definitions:

Average Product

The output per unit of input, calculated by dividing total product by the quantity of input used in production.

Workers

Individuals who perform services or labor for compensation.

Marginal Product

The extra output generated by adding a single unit of a specific input while keeping all other inputs unchanged.

Price of Capital

the cost of using capital assets for production, often reflected in interest rates or rental charges of capital equipment.