Final answer:
Lean production systems aspire to blend the customization and quality of craft production with the efficiency of mass production. Companies adjust their usage of labor and machinery to keep costs low while maintaining quality and efficiency.
Step-by-step explanation:
Lean production systems are designed to combine the best features of both mass production and craft production. The adaptability and high quality of craftsmanship are merged with the efficiency and economy of scale characterizing mass production. Businesses can therefore customize products to better meet individual customer needs without sacrificing efficiency or incurring high costs.
An example reflecting mass production principles can be seen in Ford's use of the assembly line, which dramatically reduced labor costs by simplifying each task, although at the expense of craftsmanship. As businesses face changes in costs, such as an increase in the cost of machines, they might adjust their production technology to find a balance between labor and capital that maintains the lowest total cost, as is indicated in the decision to go for production technology 2.