Lean organizations strive to improve flow by reducing the size of production batches but in the process, they increase costs.

Question

Quizplus · Accepted Answer

Lean organizations aim to reduce production batch sizes to improve flow and reduce waste, which ultimately leads to cost savings. By reducing batch sizes and improving flow, organizations can reduce inventory holding costs, decrease lead times, and increase response times to customer demand. Therefore, reducing batch sizes should not increase costs, but rather improve overall efficiency and reduce costs in the long run.

Lean Organizations Strive to Improve Flow by Reducing the Size