In Lean Systems,if a Defective Product Is Found,which of the Following

question 6

Multiple Choice

In lean systems,if a defective product is found,which of the following is generally NOT done?

• A)The production line is stopped.
• B)The defective unit is passed on to the next workstation.
• C)The defective unit is returned to the worker responsible for creating the defect.
• D)The production line is made aware of the problem without necessarily stopping the line.

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Definitions:

Economic Loss

The difference between the revenues received from the sale of an output and the opportunity cost of the inputs used.

Average Variable Cost

The variable cost per unit of output, obtained by dividing the total variable cost by the total output.

Marginal Cost

The change in total production cost that comes from making or producing one additional unit.

Shut Down

A short-term decision by a firm to cease operations and production when the market price is below its variable costs, to minimize losses.