At lean companies, employees tend to be multi-skilled and cross-trained to perform a number of duties. These workers are held in high-esteem by management and are considered to be part of a team effort, rather than a labor force to be controlled. Consequently, this
A)increases the importance of direct labor standards.
B)decreases the importance of direct labor standards.
C)Both of the above.
D)None of the above.

Question

Quizplus · Accepted Answer

In lean companies, where employees are multi-skilled and cross-trained, the importance of direct labor standards decreases because it becomes more difficult to measure productivity of each individual employee when they are performing multiple tasks. So, the focus shifts from individual worker productivity to overall team and process efficiency.

At Lean Companies, Employees Tend to Be Multi-Skilled and Cross-Trained