Question

In: Economics

If Grubhub, which delivers food in many metropolitan areas, operates under "Lean Manufacturing" rules, then it...

If Grubhub, which delivers food in many metropolitan areas, operates under "Lean Manufacturing" rules, then it would minimize cost. True or False?

True

False

Solutions

Expert Solution

TRUE.

If Grubhub operates under Lean Manufacturing , then it would minimize costs because any firm which works under the 5 princliples of Lean manufacturing is able to increase production, reduce costs, improve quality and increase profits.

The 5 principles are:

  1. Identify Value: It includes analysing customer needs and designing your product according to customer needs and eliminating values not appreciated by them.
  2. Map the Value System: It includes the complete process of product designing, customer use and disposal of product.
  3. Create Flow: It includes organising work floor so that products reach from production to shipping without interruption.
  4. Establish Pull: It takes a customer's orders, which prompts new products to be manufactured and buying any other supplies needed,
  5. Seek Perfection: It includes the company continuously making changes and improving their practices.

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