Define Lean Enterprise and the Four Principles of Lean Operating

question 51

Essay

Define lean enterprise and the four principles of lean operating systems.

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Definitions:

Indirect Cost

Costs not directly traceable to a product, department, or project, such as administration, rent, and utilities.

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Factory Rent

Expenses incurred for leasing a premises to use as a manufacturing or production facility.

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.