Why Are Lead Measures Critical to Strategy

question 74

Multiple Choice

Why are lead measures critical to strategy?

• A)because they are based on actual activity
• B)because they are an independent part of the system
• C)because there should be a causal linkage with strategy
• D)because they are outcome measures

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Definitions:

Safety Stock

Extra inventory kept in reserve to mitigate the risk of stockouts due to fluctuations in supply and demand, serving as a strategic insurance against variability in lead times.

Lead Time

The total time that elapses between the initiation and completion of a process, such as from placing an order to delivery of a product.

5Ss

refers to a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke, translating to sort, set in order, shine, standardize, and sustain.

Kanban Size

Refers to the quantity of work or inventory items that a Kanban card or signal controls in a Kanban system, aiming to optimize workflow and reduce waste in a pull-based production system.