Lean Systems Use the Standardization of Components Because Standardization

question 115

Multiple Choice

Lean systems use the standardization of components because standardization:

• A)decreases the demand for each component.
• B)increases repeatability.
• C)allows for small lot sizes more easily.
• D)decreases repeatability.

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a certain input while holding other inputs constant.

Picture Framer

A professional or business specialized in enclosing pictures, photographs, or artwork in frames.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.

Short Run

A time period in economics during which at least one input is fixed while others are variable.