The Initial Step in Achieving the Efficiency of a Just-In-Time

question 7

Multiple Choice

The initial step in achieving the efficiency of a just-in-time system is to

• A)redesign the plant layout.
• B)replace laborers with machines.
• C)stop ordering materials for inventory.
• D)identify products that are not profitable.

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Definitions:

Material Variance

The difference between the actual cost of materials used in production and the standard cost expected.

Favourable Variances

Differences between actual and budgeted performance that result in better than expected financial outcomes.

Raw Material

The basic materials from which products are manufactured or made.

Desired Outcome

The specific result or objective that an individual or organization aims to achieve through a set of actions or strategies.