A Company Has Successfully Implemented Lean Practices in Their Three

question 28

Multiple Choice

A company has successfully implemented Lean practices in their three station process. The stations are, in order, Station A, Station B, and Station C and product moves from A to B to C smoothly. One day, the equipment at Station B experiences catastrophic failure. What happens and what is the appropriate response for a Lean-thinking company?

• A)Continue producing at Station C and restore capacity at Station B.
• B)Continue producing at Station A and restore capacity at Station B.
• C)Continue producing at Station A and C and restore capacity at Station B.
• D)Everything stops and attention is focused on restoring capacity at Station B.

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Definitions:

Inflationary GDP Gap

A situation where actual gross domestic product exceeds the potential GDP, leading to upward pressure on prices and inflation.

Government Spending

The total expenditure by the government on goods and services, including salaries of public servants, public investments, and social services.

Tax Increases

A rise in the rate of taxes imposed by governments on individuals or businesses.

Inflationary Gap

A situation where the total demand for goods and services exceeds the total supply at current prices, leading to upward pressure on prices and inflation.