Decreasing cycle time by working smarter and not harder has the effect of:
A)increasing productivity.
B)decreasing the breakeven point.
C)increasing the system's effective capacity.
D)all of the above

Question

Quizplus · Accepted Answer

Decreasing cycle time by working smarter and not harder leads to an increase in productivity, which means more output can be produced in the same amount of time. This, in turn, leads to a decrease in the breakeven point as more units can be produced and sold to cover fixed costs. Furthermore, increasing the system's effective capacity means that more output can be produced in a given period of time, which can lead to increased profits and a competitive advantage. Therefore, all of the above are correct.

Decreasing Cycle Time by Working Smarter and Not Harder Has