Lazy Linda Ltd Manufactures Small Kitchen Appliances

question 84

Multiple Choice

Lazy Linda Ltd manufactures small kitchen appliances. One of the non-value added activities identified by the production manager is 'reworking the electrical component in a toaster'. Which of the following is a likely root cause cost driver?

• A) The number of products requiring rework.
• B) The quality of the completed toaster.
• C) The quality of the electrical wiring purchased from suppliers.
• D) Idle labour hours.

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Definitions:

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization to achieve objectives.

Know-How

Practical knowledge or expertise in a particular area or task, enabling effective action and problem-solving.

Systematically Capitalizing

The structured and strategic approach to utilizing assets, resources, or opportunities to gain a beneficial or profitable outcome.

Explicit Knowledge

Information or knowledge that is easily articulated, written, or shared, often in a formal language or system.