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Question: 1 / 2185

What effect does lean methodology have on lead time to customers?

It increases lead time

It eliminates lead time

It shrinks lead time

Lean methodology focuses on eliminating waste and improving efficiency within processes. One of the key goals of implementing lean practices is to streamline operations, reduce non-value-adding activities, and enhance flow. By focusing on these areas, lean methodologies can significantly decrease the time it takes for products or services to be delivered to customers.

When lead time is reduced, it translates to faster delivery for the customer, which can increase customer satisfaction and potentially improve market responsiveness. For example, by optimizing inventory levels, reducing cycle times, and implementing continuous improvement initiatives, organizations can ensure that products are produced and delivered more quickly.

This approach often leads to a more agile supply chain, where organizations can respond more adeptly to fluctuations in demand and enable shorter wait times for customers, thereby effectively shrinking lead time. In contrast, other options like increasing lead time, completely eliminating it, or merely stabilizing it do not capture the essence of lean methodology, which is inherently about improving and streamlining processes for better efficiency and responsiveness.

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It stabilizes lead time

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