Why might labor costs be reduced in a value stream system?
A)The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers.
B)The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams.
C)Some of the workers can be cross-trained to perform value-added activities within the value stream.
D)none of the above.

Question

Quizplus · Accepted Answer

In a value stream system, cross-training of workers to perform value-added activities within the value stream can result in labor cost reductions as there is no need to hire any additional employees. However, options A and B are not entirely correct as industrial engineers and production schedulers may still be needed in a value stream system, and their labor costs cannot be completely eliminated or pooled and allocated to the value streams.

Why Might Labor Costs Be Reduced in a Value Stream