Why might labor costs be reduced in a value stream system?

Question

Quizplus · Accepted Answer

Labor costs can be reduced in a value stream system by cross-training workers to perform different tasks within the value stream. This helps to eliminate the need for specialized skilled employees and increases flexibility in the workforce, leading to lower labor costs overall. Option A is incorrect because it suggests that specialized skilled employees may not be needed at all, which is not necessarily true in all cases. Option B is incorrect because pooling labor costs would not necessarily reduce them.

Why Might Labor Costs Be Reduced in a Value Stream