Lean manufacturing is ____. Identify the statement that suits the above situation. A philosophy that focuses on reducing time, cost, poor quality and uncertainty from a process. An inventory reduction method. Producing based on the sales. Improving productivity ignoring the quality and other aspects.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Lean Principles

The chief executive officer (CEO) of Cobalt Inc. just read an article written by a business professor at Harvard University describing the benefits of the lean philosophy. The CEO issued the following statement after reading the article:

This company will become a lean manufacturing company. Presently, we have too much inventory. To become lean, we need to eliminate the excess inventory. Therefore, I want all employees to begin reducing inventories until we make products “just-in-time. ” Thank you for your cooperation.

a. Lean manufacturing is ____. Identify the statement that suits the above situation.

  1. A philosophy that focuses on reducing time, cost, poor quality and uncertainty from a process.
  2. An inventory reduction method.
  3. Producing based on the sales.
  4. Improving productivity ignoring the quality and other aspects.

 

b. A CEO of a company suddenly commands that the company will become lean manufacturing company due to increased inventory. Identify the statement that suits the situation.

  1. The plan of introducing a lean manufacturing system may be effective to avoid inventory.
  2. The plan of introducing a lean manufacturing system may increase the productivity of the company.
  3. The CEO of the company has not given any action plans and the inventories created are not because of the production excess alone. It may even due to poor quality of the product.
  4. Implementing a lean manufacturing system leads to increased cost of manufacturing.

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Pricing Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education