Why might labour costs be reduced in a value stream system?
A)The reduction causes an elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers.
B)The labour costs of industrial engineers and production schedulers can be pooled and allocated to the value streams.
C)Some of the workers can be cross-trained to perform value-added activities within the value stream.
D)Typically,implementing value stream results in layoffs of many workers.

Question

Quizplus · Accepted Answer

In a value stream system, there is a focus on eliminating waste and improving efficiency, which often leads to cross-training workers to perform a variety of tasks within the value stream. This reduces the need for specialized skilled employees and can also result in a more flexible and adaptable workforce. Additionally, by eliminating non-value-added activities and improving overall efficiency, the value stream system can reduce the need for excess labor and ultimately lower labor costs. Option A is incorrect because specialized skilled employees may still be needed in a value stream system, but their role may shift to be more focused on continuous improvement rather than daily operations. Option B is incorrect because allocating the labor costs of industrial engineers and production schedulers to value streams does not necessarily reduce overall labor costs. Option D is also incorrect because while there may be some layoffs initially, the overall goal of a value stream system is to create a more efficient and effective workforce, which should ultimately benefit employees and the organization as a whole.

Why Might Labour Costs Be Reduced in a Value Stream